ICE to Launch MSCI Climate Paris Aligned Index Futures


Intercontinental Exchange, a leading global provider of data, technology, and market infrastructure, announced the planned launch of four new index futures contracts based on the MSCI Climate Paris Aligned Indices. Subject to regulatory approval, the contracts are expected to launch in January 2022 on ICE Futures U.S.

The new U.S. dollar-denominated futures contracts are designed to help investors align with a net-zero world by using a variety of proprietary, key climate metrics and models, including climate value-at-risk, low carbon transition score and companies’ carbon emission reduction targets. The indices covered will be the MSCI World Climate Paris Aligned Index, MSCI USA Climate Paris Aligned Index, MSCI Europe Climate Paris Aligned Index and MSCI Emerging Market Climate Paris Aligned Index.

“The Paris aligned goals are a fundamental part of the environmental, social and governance (ESG) landscape,” said Joel Stainton, EMEA Head of Execution, Futures and Options and OTC Clearing at Bank of America. “We are committed to identifying, developing and supporting ESG solutions for clients, so it is a positive step to see ICE launch these futures.”

“We welcome the timely introduction of futures on Climate Paris Aligned Indices as investors consider how to implement net-zero strategies into their portfolios,” said Antony Harden, Equity Derivatives Sales at Goldman Sachs.

“ICE offers customers access to the largest and most liquid environmental markets in the world to price climate risk and, as the leading venue for MSCI index futures, this new set of innovative contracts will help market participants align their portfolios with the goals of the Paris Agreement,” said Caterina Caramaschi, Global Head of Equity Derivatives at ICE. “Through these contracts, investors will be able to leverage MSCI’s leading index methodology and ICE’s established index futures ecosystem to hedge their climate related risks.”

“We’re excited to partner with ICE, a leader in bringing climate-focused derivatives products to the market,” said George Harrington, Global Head of Derivatives Licensing at MSCI. “At MSCI, we are committed to helping provide investors with the tools needed to align their portfolios with a low-carbon future, and this launch marks another step towards that mission.”

To learn more about MSCI Index Futures, please visit: https://www.theice.com/equity-index/msci.

Source: ICE

Related articles

  1. OCC Boosts Risk Management

    The build-up of exposures by the collapsed US family office can be seen in EMIR data.

  2. Coinbase Prime is starting down the road of being able to offer crypto prime financing.

  3. Founding members include Citadel Securities, Flow Traders, Jane Street Capital, BlackRock and MarketAxess.

  4. Clearstream Focuses on Collateral Mobilisation

    Firms are having to find new sources of financing or reduce positions.

  5. ICE Futures Singapore was founded to connect regional and international participants in Asia.