MIAX®, operator of high-performance securities exchanges, products and services, and the Minneapolis Grain Exchange (MGEX) today announced the successful first day of trading in Corporate Tax Rate Futures on the MGEX on May 24, 2021.
The cash-settled futures contracts are listed on MGEX via the CME Globex® platform and are cleared by MGEX, a wholly owned subsidiary of MIAX’s parent company, Miami International Holdings. Corporate Tax Futures are based on the SIL U.S. Corporate Tax Rate Index (CTAX) developed by SIG Index Licensing, LLC. CTAX is published and distributed by Bloomberg each day 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 futures expansion efforts,” said Thomas P. Gallagher, MIAX Chairman and Chief Executive Officer. “This product provides corporations and investors a new tool to manage risk associated with potential changes in corporate tax rates.”
Today’s announcement marks MIAX’s second successful launch of a proprietary futures product following SPIKES® Futures. Corporate Tax Rate Futures are traded exclusively on MGEX and offer the industry a new way to hedge market exposure by tracking the highest marginal tax rate imposed by the United States federal government on the taxable income of corporations.
“Investors and corporations have limited opportunities to manage the economic impact of changes in tax rates,” said Mark G. Bagan, MGEX President and Chief Executive Officer of MGEX. “MGEX is proud to list and clear Corporate Tax Rate Futures that 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 the Susquehanna International Group of Companies: “Futures on the U.S. Corporate Tax Rate Index address a vital need for a variety of investors, especially risk managers. We’re thrilled to have partnered with MIAX and MGEX to create this efficient new way to mitigate risk associated with corporate tax rate changes.”
For more on the methodology of Corporate Tax Rate Futures please visit www.miaxoptions.com/ctax or www.mgex.com.
Corporate Communications Contacts:
Andy Nybo, SVP, Chief Communications Officer
Natalie Kay, Karma Agency
SIG Index Licensing