CBOE Enters Into Agreement With MSCI Inc. To List Index Options

- In U.S., MSCI Index Options to Be Solely Listed on CBOE

- Options Expected to Launch in First Quarter of 2015

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Dec 10, 2014, 11:15 ET

CHICAGO, Dec. 10, 2014 /PRNewswire/ -- CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that it has entered into a licensing agreement with MSCI Inc., a leading provider of investment decision support tools worldwide, to offer options trading on several MSCI indexes. Under the agreement, in the U.S., options on the MSCI indexes will be solely listed for trading on the Chicago Board Options Exchange (CBOE).

The six indexes included in the agreement are the MSCI EAFE Index, MSCI Emerging Markets Index, MSCI ACWI Index, MSCI USA Index, MSCI World Index and the MSCI ACWI ex-USA Index.

CBOE plans to offer options trading in the first quarter of 2015, pending regulatory approval, on two of MSCI's best-known indexes: the MSCI EAFE Index and the MSCI Emerging Markets Index. CBOE plans to list options on the four other MSCI Indexes later in 2015. Options on MSCI Emerging Markets and EAFE indexes could become valuable tools for investors looking to efficiently hedge their non-U.S. equity portfolio exposures or to diversify their portfolios. Trading in options on other MSCI indexes offer new opportunities to hedge a variety of different exposures, as well.

"CBOE is pleased to be the only U.S. exchange for trading options on MSCI Indexes," said CBOE Holdings CEO Edward T. Tilly. "This agreement aligns two of the world's leaders in indexing. MSCI's extensive experience in creating global benchmark indexes and CBOE's leadership and innovation in developing and trading successful index options will make for a dynamic partnership. We look forward to working with MSCI to bring new index options products to a growing worldwide user base."

"We are delighted to have licensed the CBOE, the global leader in index options, to list options on six of our most popular global equity indexes," said Baer Pettit, Managing Director and Head of MSCI's index business. "We've seen record trading volumes in 2014 for futures based on the MSCI indexes."

In total, MSCI's Indexes are estimated to have over $9.5 trillion benchmarked to them on a worldwide basis.

The MSCI EAFE Index is recognized as the pre-eminent benchmark in the United States to measure international equity performance. It comprises the MSCI country indexes that represent developed markets outside of North America: Europe, Australasia and the Far East. The MSCI EAFE Index is calculated in U.S. dollars on a real-time basis, and values are disseminated every 60 seconds during market trading hours.
The MSCI Emerging Markets Index captures large- and mid-cap representation across 23 emerging markets countries. With over 800 constituents, the index covers approximately 85% of the free-float-adjusted market capitalization in each country.
The MSCI ACWI Index (All Country World Index) is a free-float-adjusted, market- capitalization-weighted index designed to measure equity-market performance throughout the world. The MSCI ACWI is comprised of stocks from both developed and emerging markets. The index consists of 46 country indexes comprising 23 developed and 23 emerging market country indexes.
The MSCI USA Index is a free-float-adjusted market-capitalization index that is designed to measure large- and mid-cap U.S. equity market performance. The MSCI USA Index is a member of the MSCI Global Equity Indices and represents the U.S. equity portion of the global benchmark MSCI ACWI Index.
The MSCI World Index captures large- and mid-cap representation across 23 developed markets and 23 emerging market country indexes. With more than 1,500 constituents, the index covers approximately 85 percent of the free-float-adjusted market capitalization in each country.
The MSCI ACWI ex-USA Index captures large-, mid- and small-cap representation across 22 of 23 developed markets countries (excluding the U.S.) and 23 emerging markets countries. The index covers approximately 99 percent of the global equity opportunity set outside the U.S.

For more information on MSCI Index options, see www.cboe.com/MSCI.

Since creating the first cash-settled index option in 1983, CBOE has been a pioneer and leader in index options trading. Today, CBOE lists nearly 20 broad-based index options and is the exclusive home for options on the S&P 500 Index (SPX), the S&P 100 Index (OEX) and the Dow Jones Industrial Average (DJX); the semi-exclusive home for options on the Russell 2000 Index (RUT); and lists options on the NASDAQ-100 Index (NDX). CBOE exclusively offers trading in options on its CBOE Volatility Index (VIX Index) and a broad array of other volatility-related indexes. For additional information on CBOE index options, visit: http://www.cboe.com/micro/spx-stock-index-options.aspx.

About CBOE Holdings:
CBOE Holdings, Inc. (NASDAQ: CBOE) is the holding company for Chicago Board Options Exchange (CBOE), the CBOE Futures Exchange (CFE) and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and volatility trading through product innovation, trading technology and investor education. CBOE Holdings offers equity, index and ETP options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index). Other products engineered by CBOE include equity options, security index options, Weeklys options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE Holdings is home to the world-renowned Options Institute and www.cboe.com, the go-to place for options and volatility trading resources.

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