PRINCETON, New Jersey and MINNEAPOLIS, May 26, 2021 / PRNewswire / – MIAX®, operator of high-performance stock exchanges, products and services, and the Minneapolis Grain Exchange (MGEX) today announced the successful first day of trading of interest rate futures ” corporate taxation on the MGEX on May 24, 2021.
Cash-settled futures are listed on MGEX through the CME Globex® platform and cleared by MGEX, a wholly owned subsidiary of MIAX’s parent company, Miami International Holdings. Corporate tax futures are based on the SIL US Corporate Tax Rate Index (CTAX) developed by SIG Index Licensing, LLC. CTAX is published and distributed by Bloomberg daily at 9:00 a.m.ET.
“Corporate tax rate futures are a unique and innovative product that will play a major role in continuing our efforts to expand futures contracts,” said Thomas P. Gallagher, Chairman and CEO of MIAX. “This product offers companies and investors a new tool to manage the risks associated with potential changes in corporate tax rates.”
Today’s announcement marks MIAX’s second successful launch of a proprietary futures product after SPIKES® Futures. Corporate tax rate futures are traded exclusively on MGEX and offer the industry a new way to hedge market exposure by following the highest marginal tax rate imposed by United States federal government on taxable corporate income.
“Investors and corporations have limited opportunities to manage the economic impact of tax rate changes,” said Mark G. Bagan, MGEX President and CEO of MGEX. “MGEX is proud to list and validate corporate tax rate futures which we believe will be invaluable to a variety of market participants including corporations, liquidity providers. , hedge funds and equity investors.
Added Bart smith, Head of FICC, ETF and Portfolio Group at Susquehanna International Group of Companies: “US Corporate Tax Rate Index futures meet a vital need for a variety of investors, in particular risk managers. We are delighted to have partnered with MIAX and MGEX to create this new and effective way to mitigate the risks associated with changes in corporate tax rates. “
Corporate communications contacts:
Andy Nybo, Senior Vice President, Head of Communications
Nathalie Kay, Karma Agency
GIS indexing license
MIAX’s parent company, Miami International Holdings (MIH), operates and manages Miami International Securities Exchange, LLC (MIAX®), MIAX Pearl, LLC (MIAX Pearl®) and MIAX Emerald, LLC (MIAX Emerald® and with MIAX and MIAX Pearl, the MIAX Exchange Group ™), the Minneapolis Grain Exchange, LLC, a designated contract marketplace (DCM) and derivatives clearing organization (DCO) and the Bermuda Stock Exchange.
The MIAX, MIAX Pearl and MIAX Emerald options exchanges leverage MIAX’s cutting-edge technology and infrastructure to provide their member companies with traditional prorated pricing and allocation (MIAX) market structures, maker-taker pricing and price-time allocation (MIAX Pearl), and a hybrid market structure with maker-taker pricing and prorated allocation (MIAX Emerald).
MIAX serves as the exclusive trading venue for cash-settled options on SPIKES® Volatility Index (Ticker: SPIKE), a measure of the expected volatility over 30 days in the SPDR® S&P 500® ETF (SPY).
Under the MIAX Pearl trading license, MIAX Pearl Equities ™ offers its members the best performance through a combination of high determinism, low latency and high throughput. MIAX Pearl Equities has maker-taker pricing and a price-time allocation model.
MGEX was established in 1881 and is the only market for Hard Red Spring Wheat (HRSW), National Corn Index (NCI), National Soybean Index (NSI), Hard Wheat Index Red Winter Wheat Index (HRWI), Hard Red Spring Wheat Index (HRSI), and Soft Red Winter Wheat Index (SRWI) futures and options, as well as calendar spread options HRSW (CSO). In addition, MGEX provides DCM, DCO and spot market services to trading partners in a range of asset classes. At December 4, 2020, MGEX became a wholly owned subsidiary of MIH.
MIAX’s executive offices and national operations center are located at Princeton, New Jersey, with additional offices located in Miami, Florida.
To find out more visit www.MIAXOptions.com.
About SIG Index Licensing, LLC
SIG Index Licensing, LLC, a member of the Susquehanna International Group of Companies (SIG), authorizes indices for use in the creation and settlement of financial products. SIG is a global quantitative trading company founded with a spirit of growth and an analytical approach to decision making. As one of the world’s largest proprietary trading companies, SIG benefits financial markets by providing liquidity and ensuring competitive prices for buyers and sellers. SIG brings together the brightest minds, the best technology and a vast library of data to design and implement qualitative trading strategies that make it a leader in the financial markets. Beyond trading, SIG is active in global private equity, structured capital and institutional brokerage. For more information, visit sig.com.
Disclaimer and Caution Regarding Forward-Looking Statements
The press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Miami International Holdings, Inc. (with its subsidiaries, the Company) or of SIG Index Licensing, LLC (SIG Index Licensing), and must not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer; the solicitation or sale would be illegal. This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and are usually preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected”, “anticipate”, “draft”, “possibly” or “planned”. You are cautioned that these statements are subject to a multitude of risks and uncertainties which could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ. substantially from those projected. in forward-looking statements.
All third party trademarks (including logos and icons) referenced by the Company and SIG Index Licensing remain the property of their respective owners. Unless specifically identified as such, the use by the Company and SIG Index Licensing of third-party trademarks does not indicate any relationship, sponsorship or endorsement between the owners of such marks and the Company or SIG Index Licensing. Any reference by the Company and SIG Index Licensing to third party trademarks is intended to identify the corresponding third party goods and / or services and should be considered nominative fair use under trademark law.
UNITED STATES CORPORATE TAX RATE INDICATOR FUTURES RISK DISCLOSURE
The risk of loss when trading commodity futures can be substantial. You should carefully consider the risks of trading commodity futures in general and the unique risks of trading US corporate tax rate index futures (TAX futures) in particular before proceeding. conclude a transaction. Since there are no comparable products such as TAX futures contracts that reference and settle on a federal tax rate, there are tax implications and unknown tax treatments associated with the negotiation of these contracts. No federal guidance has been issued as to whether this product can be treated as a hedging transaction. In addition, there is no federal law or guideline on the deductibility of costs incurred in trading tax futures, whether for speculative or hedging purposes. Likewise, the tax treatment associated with tax futures contracts for the realization, recognition or offset of gains or losses, whether capital or ordinary, is not known. Any of the above risks may result in adverse consequences, including non-deductibility of expenses or losses, and unfavorable tax treatment of gains or losses. EACH MARKET PARTICIPANT WHO CHOOSES TO EXCHANGE TAX FORWARDS DOES SO AT ITS OWN RISK AND IS RESPONSIBLE FOR ANY TAX CONSEQUENCES AND FOR REPORTING THEIR BUSINESS ACTIVITY UNDER COMPETENT GOVERNMENTAL AUTHORITIES AND COURTS. THEREFORE, IT IS STRONGLY RECOMMENDED THAT EACH MARKET PARTICIPANT CONSULT THEIR TAX ACCOUNTANT OR PROFESSIONAL LAWYER BEFORE NEGOTIATING FUTURE TAX CONTRACTS.