MIAX®, creator and operator of high-performance securities exchanges, products and services, and SIG Index Licensing, LLC (SIG Index Licensing) will launch cash-settled futures contracts on SIG Index Licensing’s U.S. Corporate Tax Rate Index. The new futures contracts will begin trading on May 24, 2021.
Corporate Tax Rate Futures will offer corporations and investors an efficient way to manage risk in uncertain corporate tax rate environments. The futures contracts will be the first of their kind and come at a time when global corporate tax rates are subject to changing governmental corporate tax policy and post-stimulus tax recovery plans.
Thomas P. Gallagher, Chairman and Chief Executive Officer of MIAX, said, “Corporate tax rates are the subject of considerable speculation and inherent risk for corporations and we believe the new Corporate Tax Rate Index and futures contracts will provide powerful risk management tools to hedge against future tax rate volatility. The launch of the new Corporate Tax Rate Futures represents the first product to provide risk managers with an efficient tool for trading risk associated with changes in U.S. corporate tax rates. Corporate Tax Rate Futures is the second innovative proprietary futures product to be delivered by MIAX, following SPIKES® Futures.”
Cash-settled futures contracts will be listed on the Minneapolis Grain Exchange (MGEX) via the CME GLOBEX® platform and will be cleared by MGEX, a wholly owned subsidiary of MIAX’s parent holding company, Miami International Holdings.
Mark G. Bagan, President and Chief Executive Officer of MGEX, said, “Uncertainty regarding U.S. corporate tax rates has a stifling effect on entrepreneurship and investor confidence and even small changes in corporate tax rates can have an outsized influence on corporate earnings. We expect the new Corporate Tax Rate Futures to provide corporations, investors and other end users a timely hedging tool to offset that risk and uncertainty.”
Bart Smith, Head of FICC, ETF and Portfolio Group at the Susquehanna International Group of Companies, said, “Given the trillions of dollars exposed to risk through changes in U.S. corporate tax rates, an innovative approach to benefit those who would hedge against tax risk is long overdue. We see the index and the Corporate Tax Rate Futures as extremely valuable to corporations, liquidity providers, institutions, hedge funds and equity investors.”
For more on the methodology of Corporate Tax Rate Futures please visit www.miaxoptions.com or www.mgex.com.
Corporate Communications Contacts:
MIAX
Andy Nybo, SVP, Chief Communications Officer
609-955-2091
anybo@miami-holdings.com
Natalie Kay, Karma Agency
215-790-7806
nkay@karmaagency.com
SIG Index Licensing
Evan Brazinski
(484) 562-1454
evan.brazinski@sig.com