Introduction
The MSCI Emerging Markets (EM) Net Total Return Index is designed to measure the performance of the large and mid cap representation across 26 EM countries. EM countries include: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. As at 30 June 2020, the index comprises 1,385 constituents and covers about 85% of the free float-adjusted market capitalization in EM. The Index is calculated in a net total return form (i.e. reinvestment of net dividend payout into the index portfolio).
Uses of MSCI Emerging Markets Net Total Return (USD) Index Futures
The introduction of the MSCI Emerging Markets Net Total Return (USD) Index Futures contract aims to meet the trading and hedging needs of investors who have exposure to large and mid-cap companies in EM in a cost effective manner. Asset managers and banks can make use of MSCI Emerging Markets Net Total Return (USD) Index Futures for cash equitisation and manage market, settlement and liquidity risks without cross zone trading issue.
The constituent list and vendor codes can be found in MSCI websites https://www.msci.com/constituents and https://www.msci.com/ticker-codes respectively.
The Commodity Futures Trading Commission (CFTC) has certified the MSCI Emerging Markets Net Total Return (USD) Index Futures contracts to be offered and sold to persons in the U.S.
