US multi-issuer platforms adds to buy side; new Solactive-linked leverage ETPs launched in HK; Cboe bolsters digital business; and more.
Gender equality data provider Equileap has partnered with Euronext to launch the Euronext Equileap Gender Equality France 40 Index.
The index is the first in a family of indices created by Euronext and Equileap to allow investors to align their portfolios with their values by tracking companies that meet both gender equality and ESG criteria.
To be included in the index, companies need to pass standard liquidity criteria as well as an Equileap gender equality and gender diversity assessment based on 19 criteria across four categories: gender balance in leadership and workforce; equal compensation and work/life balance; policies promoting gender equality, commitment, transparency and accountability.
In addition, any companies with incidents of gender discrimination or sexual harassment that have triggered legal judgements or rulings and companies red flagged against any of the UNGC or NBS international standards or that are involved in controversial weapons are excluded from the index - firms are also excluded if involved in energy and extractives such as coal mining and associated power generation, oil sands, shale oil and gas and tobacco.
The Gender Equality France 40 Index is drawn from companies included in the SBF 120 Index. The top five highest ranking companies in the Gender Equality France 40 Index include Sanofi (12.43%), LVMH (11.90%), L’Oreal (10.17%), Schneider Electric (9.81%) and AXA Insurance (6.83%).
The Gender Equality France 40 Index will be joined by the Euronext Equileap Gender Equality Eurozone 100 which will be drawn from the companies included in the Euronext Eurozone 300 index and will feature the 100 highest ranking companies when assessed against the same gender equality and ESG screen.
‘Once again, we are seeing that investing in women at work pays,’ said Diana van Maasdijk (pictured), CEO at Equileap. ‘The back-tested over-performance of the Gender Equality France 40 of 3% over the last 3 years is further support for the growing evidence that links gender equality to higher performance.’
BMO onboards Halo for structured notes program
BMO Wealth Management US has reached an agreement with Halo Investing to use the US multi-dealer platform as the core technology infrastructure for its structured note program.
BMO Wealth Advisors in the US will have access to Halo’s suite of web-based tools which includes educational tools, life cycle management, click and trade as well as post-trading, full back-end administration and tracking capabilities.
‘In today’s market environment, managing risk effectively and providing innovative investment solutions to our clients is important to long-term success,” said Josh Palleon, managing director of institutional and investment strategies at BMO Wealth Management.
The Halo platform makes it easier to offer clients defined-outcome solutions, which can lead, in turn, to growing assets under management.
‘If you only have access to stocks and bonds, you may not be able to sufficiently manage risk during volatile market periods, and that's what structured notes do, they’re a perfect bridge to the risk gap between stocks and bonds,’ said Jason Barsema (above-right), co-founder and president of Halo.
Halo has reported several company milestones over the past 24 months including closing a US$100+ million Series C round of funding and onboarding more than 40 global banks and carriers’.
CSOP rollsout 2x leveraged / -2x inverse ETPs on Solactive index
As economies reopened after Covid-19 and geopolitical tensions have increased, both the demand and supply for oil & gas and the price of these commodities have been rising in volatility. They are the main ingredient for a great variety of industrial products such as transportation fuels, plastics, solvents, and a source of electricity and heat generation. Recently, market concerns over energy shortages provided strong tailwinds for oil & gas companies’ stock prices.
Solactive has licensed its Solactive US Large Oil & Gas Companies index to CSOP Asset Management to be used as the underlying of two new ETPs – a daily (2x) leveraged and a daily (-2x) inverse ETP in the Hong Kong L&I space.
The Solactive US Large Oil & Gas Companies Index is a representation of the 15 largest securities listed on a stock exchange in the United States, from the Oil and Gas sectors. To be eligible for inclusion in the index, companies must be liquid enough and classified under the following industries: Oilfield Services/Equipment, Integrated Oil, Oil & Gas Pipelines, Oil & Gas Production, Oil Refining/Marketing, and/or Contract Drilling.
The CSOP US Large Oil & Gas Companies ETPs are designed to allow investors to take tactical positions on the movement of major oil and gas companies from the US.
‘L&I products are increasingly gaining importance for investors who want to pursue short-term market views to generate capital gains, increase diversification, or hedging their positions.’ said Timo Pfeiffer (above-right), chief markets officer at Solactive.
With the launch CSOP Asset Management has further expanded its L&I products line to 19 in total.
HKEX launches Hang Seng Tech index futures options
Hong Kong Exchanges and Clearing Limited (HKEX) has launched its Hang Seng TECH Index Futures Options and added several enhancements to its existing Hang Seng Tech Index derivatives products.
HKEX's Hang Seng TECH Index Futures Options (Options on Futures, OOF) began trading on 28 November. Investors holding an OOF will now have the opportunity to manage their risk with reference to a futures position on HKEX, prior to the settlement of the underlying futures contract.
HKEX's OOFs were launched in August 2021 and have been one of the fastest growing products ever on HKEX's derivatives market, according to HKEX chief operating officer and co-head of markets Wilfred Yiu.
‘The strong momentum of OOFs and Hang Seng TECH Index products is great to see and reflects our ongoing efforts to enhance Hong Kong's position as a vibrant and connected international derivatives market,’ said Yiu.
Average daily volume (ADV) of HKEX's OOFs, Hang Seng Index Futures Options and Hang Seng China Enterprises Index Futures Options, recorded a monthly ADV of 48,220 contracts as at 23 November 2022, marking a significant increase from ADV of 4,072 contracts in 2021. The combined open interest of HKEX's OOFs also exceeded 1,119,000 contracts in November, with a notional value of US$52 billion.
HKEX has also announced the inclusion of Hang Seng Tech Index Options in the After-Hours Trading (AHT) Session and the addition of new contract months for its Hang Seng Tech Index Futures and Hang Seng TECH Index Options.
Cboe announces investor partners for digital business, eyes cryptos
Cboe Global Markets has named a group of thirteen firms as investor partners with a minority equity interests in the Cboe Digital business.
The group investors is comprised of retail and institutional intermediaries, liquidity providers and brokers including B2C2, DRW, Galaxy Digital, GSR, Hidden Road, IMC, Interactive Brokers, Jane Street, Jump Crypto, Robinhood, Susquehanna International Group, tastyworks and Virtu Financial.
Through their equity ownership, each firm will directly benefit from the growth of Cboe Digital and close strategic and commercial alignment. The group of investor partners join a roster of commercial partner firms supporting the Cboe Digital business.
‘Cboe Digital's foundation is based on the core tenets of a trusted financial exchange – transparency, regulatory oversight, and customer protection – underpinned by responsible innovation and the value of an intermediary-driven model,’ said John Deters (above-right), chief strategy officer, Cboe Global Markets. "
Additionally, as part of its operation of the Cboe Digital business, Cboe plans to form a Digital Advisory Committee comprised of a cross-section of investor and commercial partner firms. The committee will be tasked with advising Cboe on the ongoing development of the Cboe Digital spot and derivatives markets, and more broadly, the digital asset space.
Cboe Digital (formerly ErisX) operates a spot market, derivatives market and clearing platform, and has plans to develop and distribute a range of digital asset data products, subject to regulatory approval.