ICE Enhances NYSE FANG+™ Index Futures
Reduces notional value of the contract to one tenth of the current size
ATLANTA & NEW YORK–(BUSINESS WIRE)–Intercontinental Exchange (NYSE: ICE), 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.”
For more information about NYSE FANG+™ Index Futures, please visit: https://www.theice.com/fangplus.
* Returns as of August 14, 2020. The NYSE FANG+™ Index launched on 09/26/2017. Prior performance (09/19/2014 to 09/25/2017) is based upon backtested index calculations.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company formed in the year 2000 to modernize markets. ICE serves customers by operating the exchanges, clearing houses and information services they rely upon to invest, trade and manage risk across global financial and commodity markets. A leader in market data, ICE Data Services serves the information and connectivity needs across virtually all asset classes. As the parent company of the New York Stock Exchange, the company is the premier venue for raising capital in the world, driving economic growth and transforming markets.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at http://www.intercontinentalexchange.com/terms-of-use. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Apple® is a registered trademark of Apple, Inc. Facebook® is a registered trademark of Facebook, Inc. Amazon® is a registered trademark of Amazon Technologies, Inc. Netflix® is a registered trademark of Netflix, Inc. Google® is a registered trademark of Google, Inc. Alibaba® is a registered trademark of Alibaba Group Holding Limited. Baidu® is a registered trademark of Baidu.com, Inc. Nvidia® is a registered trademark of Nvidia Corporation. Tesla® is a registered trademark of Tesla, Inc. Twitter® is a registered trademark of Twitter, Inc. S&P 500® is a registered trademark of Standard & Poor’s Financial Services LLC. NASDAQ-100® is a registered trademark of NASDAQ, INC.
None of the foregoing entities are affiliated with, endorsed by, or sponsored by Intercontinental Exchange, Inc., or any of its subsidiaries or affiliates, and the inclusion of the entities on our web site does not evidence a relationship with those entities in connection with the Index, nor does it constitute an endorsement by those entities of the Index or NYSE.
NYSE FANG+™ Index is a trademark of ICE Data Indices, LLC or its affiliates (“ICE Data”) and has been licensed for use in connection with the NYSE FANG+™ Index Futures. The NYSE FANG+™ Index Futures is not sponsored, endorsed, sold or promoted by ICE Data Indices, LLC. ICE Data makes no representations or warranties (i) regarding the advisability of investing in securities or futures contracts, or (ii) that any such investment based upon the performance of the NYSE FANG+™ Index particularly, or the ability of the NYSE FANG+ Index will track general stock market performance.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 6, 2020.
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