PRINCETON, NJ and MINNEAPOLIS, May 26, 2021 / PRNewswire / – 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 May 24, 2021.
The cash settled futures contracts are listed on the MGEX via the CME Globex® platform and are processed 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 every day by Bloomberg at 9:00 p.m. ET.
“Corporate Tax Rate Futures are a unique and innovative product that will play an important role in continuing our futures expansion efforts,” he said Thomas P. Gallagher, MIAX Chairman and Chief Executive Officer. “This product offers companies and investors a new tool to manage the risk associated with possible changes in corporate tax rates.”
Today’s announcement marks the second successful launch of a proprietary futures product by MIAX after 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 The United States Federal government on the taxable income of companies.
“Investors and companies have limited options to face the economic impact of changes in tax rates,” he said Mark G. Bagan, MGEX President and Chief Executive Officer of MGEX. “MGEX is proud to list and delete corporate tax rate futures that we believe will be invaluable to a wide 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: “Futures on the US Corporate Tax Rate Index meet an important need for a wide variety of investors, especially risk managers. We are very excited to be partnering with MIAX and MGEX to create this efficient new way to mitigate the risk associated with corporate tax rate changes. “
Further information on the methodology of corporate tax rate futures can be found at www.miaxoptions.com/ctax or www.mgex.com.
Contacts for corporate communications:
Andy Nybo, SVP, Chief Communications Officer
Natalie Kay, Karma Agency
SIG index licensing
MIAX’s parent holding, Miami International Holdings (MIH) operates and manages Miami International Securities Exchange, LLC (MIAX®), MIAX Pearl, LLC (MIAX Pearl®) and MIAX Emerald, LLC (MIAX Emerald®), as well as jointly with MIAX and MIAX Pearl, the MIAX Exchange Group ™), the Minneapolis Grain Exchange, LLC, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) and the Bermuda Stock Exchange.
The MIAX, MIAX Pearl and MIAX Emerald options exchanges leverage MIAX’s industry-leading technology and infrastructure to provide their member firms with traditional pricing and proportional allocation (MIAX), maker-taker pricing and price-time allocation (MIAX Pearl) market structures. and a hybrid market structure with maker-taker prices and proportional allocation (MIAX Emerald).
MIAX serves as the exclusive exchange point for options with cash settlement on the SPIKES® Volatility Index (ticker: SPIKE), a measure of the expected 30-day volatility in the SPDR® S & P 500® ETF (SPY).
Under the MIAX Pearl exchange license, MIAX Pearl Equities ™ offers its members world-class performance through a combination of high determinism, low latency and high throughput. MIAX Pearl Equities has maker-taker prices and a price-time allocation model.
Established in 1881, MGEX is the only market for Hard Red Wheat (HRSW), National Corn Index (NCI), National Soybean Index (NSI), Hard Red Winter Wheat Index (HRWI), and Hard Red Spring Wheat Index (HRSI). and futures and options of the Soft Red Winter Wheat Index (SRWI) as well as for HRSW calendar spread options (CSOs). In addition, MGEX offers business partners DCM, DCO and cash market services in a number of asset classes. On 4th December 2020MGEX became a wholly owned subsidiary of MIH.
MIAX offices and the National Operations Center are located in Princeton, NJ, with additional offices in Miami, Florida.
For more information, please visit www.MIAXOptions.com.
About SIG Index Licensing, LLC
SIG Index Licensing, LLC, a member of the Susquehanna International Group of Companies (SIG), licenses indices for use in the creation and settlement of financial products. SIG is a global quantitative trading company founded with a growth philosophy and an analytical approach to decision making. As one of the largest proprietary trading companies in the world, SIG benefits the financial markets by providing liquidity and ensuring competitive prices for buyers and sellers. SIG brings together the brightest minds, the best technology and an extensive library of data to design and implement quality trading strategies that make it a leader in the financial markets. In addition to trading, SIG is active in global private equity, structured capital and institutional brokerage. Visit sig.com for more information.
Disclaimer and cautionary note regarding forward-looking statements
The press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Miami International Holdings, Inc. (together with its subsidiaries, the company) or SIG Index Licensing, LLC (SIG Index Licensing) is not an offer, none Constitute solicitation or no sale in any state or jurisdiction in which such an offer is made; Advertising or selling 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 generally expressed in words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected”, “anticipated”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a variety of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risk that actual results may differ materially from those projected differ in the forward-looking statements.
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US CORPORATE TAX RATE INDEX FUTURE CONTRACTS RISK DISCLOSURE AND DISCLAIMER
The risk of loss when trading commodity futures contracts can be significant. You should carefully consider the risks of trading commodity futures contracts in general and the particular risks of trading US Corporate Tax Rate Index (TAX) futures contracts in particular before entering into any trade. Since there are no comparable products such as TAX futures contracts that refer to and process a federal tax rate, trading in these contracts is associated with unknown tax effects and tax treatments. No state guidance has been issued as to whether this product can be treated as a hedging transaction. In addition, there are no federal laws or guidelines on the deductibility of the costs associated with trading TAX futures contracts, whether for speculative or hedging purposes. Likewise, the tax treatment of TAX futures contracts for the realization, recording or offsetting of capital or ordinary profits or losses is not known. Any of the above risks can lead to adverse consequences, including the non-deductibility of expenses or losses and the unfavorable tax treatment of profits or losses. EVERY MARKET PARTICIPANT TRADING FUTURE TAX CONTRACTS DOES THIS AT YOUR OWN RISK. Therefore, it is highly recommended that every market participant consult their professional tax advisor or attorney before entering into any tax future contract trading.