Miami International to list Bloomberg US blue chip index derivatives

MIH on Wednesday announced the plan to list the MIAX Bloomberg 500 Index futures on its rebranded MIAX Futures exchange and the equivalent options on MIAX Options, pending regulatory approvals.

The derivatives will be based on the Bloomberg US Large Cap Price Return Index, which the exchange group argues has a clearer and non-discretionary methodology compared to alternatives.

"The Bloomberg® 500 Index - the B500 - is a transparent benchmark that seeks to provide unbiased exposure to US Large Cap companies through a rules-based approach, free of subjectivity,” Umesh Gajria, global head of index-linked product at Bloomberg Index Services, said in a statement.

“It also allows for the inclusion of high-profile initial public offerings (IPOs) and high-growth potential companies for a more comprehensive market representation."

The futures will be the first new products on MIAX Futures, formerly known as the Minneapolis Grain Exchange (MGEX). The exchange group last week confirmed plans to migrate its flagship Minneapolis Hard Red Spring wheat (HRSW) futures to its MIAX futures Onyx technology platform in the second quarter, adding the group wants to expand its futures product suite using its proprietary technology.

“We are pleased to provide the industry with a suite of new futures and options products offering a competitive alternative to manage exposure to the 500 largest publicly traded US corporations,” Thomas Gallagher, chairman and chief executive Officer of MIH, said in a release.

“I believe our technology, support from strategic exchange members and Bloomberg’s distribution capabilities create a powerful combination to help answer industry demand for alternative ways to hedge and manage risk in US equities and options markets," Gallagher added.