MGEX - Corporate Tax Futures

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2021-05-27 12:00:09

Corporate Tax Futures (ticker: TAX) will fill a market void in managing tax risk, offering an effective tool to trade risk associated with changes in the U.S. corporate tax rate. Powered by MIAX® and offered by MGEX via the CME Globex® platform, Corporate Tax Futures contracts bring tradability to the effects of post-stimulus budgeting in government.

Corporate Tax Futures are built upon the SIL U.S. Corporate Tax Rate Index (index symbol: CTAX), developed by SIG Index Licensing, LLC. The CTAX index provides a clear, simple way to measure potential changes in the U.S. corporate tax rate. By tracking the highest marginal tax rate imposed in each year by the United States federal government on the taxable income of corporations, investors will be able to better hedge U.S. equity market exposure. For the first time, corporations, liquidity providers, institutions, hedge funds and equity investors will have a powerful risk management tool to hedge against future corporate tax rate volatility.