08.18.2020

ICE Reduces Size Of NYSE FANG+ Index Futures

08.18.2020
Shanny Basar
ICE Reduces Size Of NYSE FANG+ Index Futures

Intercontinental Exchange, a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listing services, today announced it plans to enhance the NYSE FANG+™ Index futures by reducing the contract size to better match the needs of a wide range of investors.

The contract multiplier, which determines the notional value of the contract, is expected to be reduced to $5 times the index from the current $50, effective September 28, 2020, subject to regulatory approval. With this change, the notional value of each futures contract will be approximately $24,000, or one tenth the current size.

“The NYSE FANG+™ Index has a proven track record of delivering above-average returns and enabling investors to take positions and manage risk in some of the best known and most actively traded technology stocks,” said Trabue Bland, President of ICE Futures U.S. “By significantly reducing the size of the contract, we’re making it far more accessible to both retail and institutional investors.”

NYSE FANG+™ Index futures are based on the NYSE FANG+™ Index, and are designed to offer hedging, exposure and the capital efficiency of futures to a select group of highly traded growth stocks of tech-enabled companies. With a cumulative total return of nearly 250% since the start of 2017 and a return of over 90% since bottoming out in March 2020*, the NYSE FANG+™ Index has consistently outpaced several other peer indices.

The NYSE FANG+™ Index is equally weighted and includes the five core FAANG stocks – Facebook, Apple, Amazon, Netflix and Google (Alphabet) – plus another five actively-traded technology growth stocks – Alibaba, Baidu, NVIDIA, Tesla and Twitter. It is calculated and disseminated through the ICE Data Consolidated Feed under the symbol “NYFANG.”

Source: ICE

Related articles

  1. Partnership brings cutting-edge trading functionalities to the voluntary carbon market.

  2. $63.8bn of shares were executed in the Closing Cross in 2.04 seconds in Russell's annual reconstitution.

  3. This year's traded notional exceeded €100m compared to last year’s €20m.

  4. The suite of tradeable indices are based on the Bloomberg Fixed Income Indices.

  5. Clients can access UMBS TBA futures alongside U.S. Treasury and short-term interest rate contracts.