Clifford J. Weber is Executive Vice President, Head of Strategy and Product Development for NYSE Liffe US. He is responsible for the research,...
NYSE Liffe U.S. has surpassed $1 billion in notional value for Block Trade at Index Close or “BIC” trading. BIC trading allows customers to manage the tracking impact of executing large orders relative to the underlying index level by explicitly tying the transaction price to the closing level of the underlying index. Since September launch, activity in BIC trades has steadily increased, with $381 million transacted in mini MSCI EAFE Index futures and $263 million in mini MSCI Emerging Markets Index futures since March 1 alone.
We are very pleased with the market’s response to this new trading tool. We created BIC trading to offer our customers the flexibility to unlock the greatest value and efficiency in our markets. In less than a year since completing the migration from CME of futures on MSCI Emerging Markets and MSCI EAFE indices, we have built a robust, vibrant market in these contracts with record volumes and open interest. This $1 billion milestone in BIC trading is just the latest indication of the value of innovation for our customers and the continued strength, liquidity and diverse participation found in our marketplace.
For more information on BIC trades in the mini MSCI futures contracts, check out the video below.