FTSE Russell's Creighton Delves Into Digital Assets And 0DTE Options

To kick off the second day of the International Futures Industry Conference, Shawn Creighton, the Director of Index Derivatives Solutions at FTSE Russell, joins the show for the second year in a row to discuss the issues that are creating the most buzz at Boca50. 

During this quick, 10-minute podcast, Creighton delves into an array of topics, including:

• Interest in digital assets indices continues to expand, while the rise of cryptocurrencies powers the launch of perpetual contracts for Bitcoin and Ethereum futures.
• Geopolitical risks are driving continued growth of 0DTE options.
• Investor interest in products linked to sustainability has waned in the US, but remains steady in other markets.
• 'Finfluencers' and other channels are being leveraged to boost awareness of the Russell 2000 in markets outside the US.
• Say goodbye to your weekend because the push to offer 24/7 trading is only going to get stronger.

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Transcript

(Note: This transcript was created using AI. It has not been edited verbatim.)

Sean McMahon  0:00  

Sean, Hello everyone, and welcome to the Modern Money Smart pod. I'm your host, Sean McMahon, and this week we're coming to you from the International futures Industry Conference in Boca, Raton, Florida. This morning, my guest to kick off day two is Shawn Creighton, the director of Index Derivative Solutions for FTSE Russell. Shaw, how are you doing today?

Shawn Creighton  0:26  

Sean, we do this every year, but Sean, thanks for having me.

Sean McMahon  0:29  

Shawnn, it's great to see you. Like I said, we're day two. So we're almost about halfway through this year's conference. How are things going for you so far?

Shawn Creighton  0:37  

Day two, I'm already exhausted, and we're just we're day two morning. So we're just starting off day two. You know, it's great every year. Love coming down here. You know, we have a packed agenda meeting with all of our exchange partners, market participants. And, you know, really just trying to understand from individuals, what is the focus for this year? What is everyone looking at? So, you know, we really, we really value the time that everyone commits to us. And, you know, excited to be here, jam packed day, lots, lot to do. And, you know, really just looking forward to meeting and speaking with everybody.

Sean McMahon  1:10  

So speaking of talking to everybody, what's the, what's the biggest buzz you're hearing this week?

Shawn Creighton  1:15  

Yeah, so like, should I just go to the default Trump? But so I think you know, where everyone's talking about the uncertainty in the markets and how derivatives, you know, is, again, like a very topical conversation for how people are hedging risk and how they're looking at, you know, geopolitical risk as well. But I think, you know, if we, if we put, let's just take the easy comment aside, put Trump, put geopolitics, all that to the side. I think everyone's looking or the conversations that we had yesterday, you know, everyone's really looking at, how do we position ourselves for continued growth, and what are some new, unique areas that we want to position ourselves in? So I'm sure you're going to go into this. Sean, but you know, we're really focused on the digital asset space. So FTSE Russell, you know, we have a suite of digital asset indices. You know, we have a great partner in UX that we launched Bitcoin and Ethereum futures and options with. And you know, we continue to talk around that space as I think that, you know, area of investment continues to open up and more and more individuals are interested in that. What I mean by that is, you know, it's not just a retail crowd. It's also, you know, very much, transitioning to an institutional investment as well. 

Sean McMahon  2:31  

So yes, we've been hearing a lot about digital assets. This week, exchanges are launching, you know, 24/7 futures. Where do you see that whole marketplace going in the next 12, say, 18 months? 

Shawn Creighton  2:40  

So look, you saw some announcements this week. You would have seen like the launch of perpetuals as another area. So, so for us, you know, we very much are dedicated to the space. We've invested heavily, you know, as an organization in the space. And I wish I could tease an announcement. Actually, I'm going to tease it. Sean, we have an announcement coming soon, with a with a large global exchange, that we're going to do something in digital assets. I wish I can tell you who it is. We're not there yet, but you'll see more from FTSE Russell in this space.

Sean McMahon  3:11  

Okay, what other hot topics are out there this week?

Shawn Creighton  3:15  

Yeah, so I mean, outside of, outside of digital assets, I think sustainable still comes up not so much with the US exchanges, but you know, when we talk with our email and APEC partners, it's top of mind for them as well, which is interesting, right? Because when I was at this conference, you know, maybe three, four years ago, everyone wanted to talk sustainable. And then the last couple years, it was like, No, we're not as interested, but, but you know, it's still top of mind for a couple exchanges, depending on, you know, where they're based, and fixed income. So I think you know what you're seeing is, you've seen this from the exchanges as well, this launch of new fixed income products, whether it be in credit, you've seen some announcements in the repo space. So, so we're, you know, we're working closely with the exchange partners and how, you know, maybe indexes on the fixed income side fit into their roadmap. So quite a bit of time on fixed income as well, all right?

Sean McMahon  4:11  

And in terms of, you know, everyone's talking about President Trump and policies. So how is that playing into what you're hearing from your customers? Whether it's, you know how to manage risk associated with tariffs that may or may not actually happen, or just broader geopolitical shifts. 

Shawn Creighton  4:26  

Yeah, so I think Sean I jokingly said, can we just put Trump to the side? Everyone's talking about Trump. But in all seriousness, a lot of our conversations are on the geopolitical landscape, and you know what's going on abroad, for conflicts and etc. So ton of time spent talking through that and how, you know, we have the right utilities in place to hedge that risk. You know, what you've seen is the 0DTE, zero days to expiry phenomenon is really kind of taken off for the Russell 2000 in the US, we've seen a drastic increase in. 0DTE options. It's roughly 25% of the options that are traded on Cboe. So what you're seeing is participants, whether it be institutional or retail, utilizing those vehicles to hedge risk. And let's be honest, Trump's a wild card, you know, he he's in the evening on, you know, social media saying things, and you need a vehicle to take a position or hedge, you know, the risk from what he's saying, right? So, so these contracts offer participants the ability to take a view and and ensure that they're properly hedged for whatever Trump risk that's out there, all right.

Sean McMahon  5:43  

And then in terms of, you know, getting back to the Russell, what kind of growth, or what's the footprint looking like for that outside the US? 

Shawn Creighton  5:50  

Sean, great question. Really happy you asked that. So, you know, Russell for us, traditionally, you know, very revit, prevalent in the US. We are making a concerted effort to bring Russell to a global participant base. And what do I mean by that? You know, we're looking to partner with some of the retail platforms in APAC to offer index, whether it be futures or options, on their platform, to gain access to Russell. We're working with some of the local participants to ensure that we have a, you know, holistic offering that's fit for purpose. What I mean by that is, you know, do our trading hours reflect when they want to participate in this market? And just little things? Sean on, you know, how do we how do we market Russell to that audience? I'll give you an example. Finfluencers … new to me, right? So finfluencers in certain markets, in APAC, we're partnering with them to ensure that we get the Russell message out and that, you know, the participants understand that if you want to take a US view, Russell is one of your best utilities to take a position in the US market,

Sean McMahon  7:02  

And then so all the talk about 24 five, 24/7 trading. Are we going to be living in a world pretty soon? Here we're at, you know, 2am on a Sunday. We got to be worried about where positions are at and having having the tools and products available to to either risk on or risk off. 

Shawn Creighton  7:17  

Sean, I know you work really hard, but I don't, I don't think you want to work the weekends. I don't want to work the weekends. But look, we're moving to that space, to where you've seen announcements recently, to where exchanges are making the so right now, right 23 five is pretty prevalent in the space, but you're seeing exchanges position themselves to go towards that. You know, 23 and a half, seven days a week model. I don't think that's going away. I think I think that's that's coming, and I think a lot of that has to do with the growth we've seen in the retail investor and the retail investor wanting access to markets around the clock. So, you know, from our standpoint, how am I positioning our business? It's working with our exchange partners, where we have product on our indexes listed, ensuring that they're offered in the timeframe that you know is best suited for the investor, and just making sure that, you know, we are educating the market with the exchange partners on you know, how best they can access the market regardless of time, you know, during the day, but long winded answer of it's here to stay. I actually think we're, we're going, you know, further out to where you're going to see trading around the clock seven days a week. And I think it's healthy for the market.

Sean McMahon  8:38  

All right, that's a perfect segue, because, speaking of things that go on around the clock, the events here at Boca, you know, it's meetings and panels and speakers all day, and then a little bit of fun at night. And so I've been asking a lot of the guests on this show tonight's entertainment is Cheap Trick. Got any anecdotes or childhood stories you want to share about Cheap Trick?

Shawn Creighton  8:58  

Admittedly, Cheap Trick is a little before my time, but I do know a couple songs. It's, look, I think it's great. It's, it's a great way to bring everyone together and and really just have a, have an enjoyable evening. You know, it's the 50th anniversary of FIA Boca, and what better way to kind of cap it off with a cheap trick concert? Right? I'm excited. It's going to be a good time, but you won't see me belted out tunes in the front row.

Sean McMahon  9:27  

Okay, no stage dives from Shawn Creighton? 

Shawn Creighton 9:31

No, no, no stage dives

Sean McMahon  9:35

All right. Well, listen, Sean, like you said at the top, we do this every year, and I look forward to chat with you all the time, so I appreciate you making the time you raise your schedule

Shawn Creighton 9:41

Sean, thanks again. Appreciate it. 

Sean McMahon  9:45

Well, that's our show for today. But before I get out of here, one last reminder, be sure to watch for more episodes of this podcast as we bring you all the news and headlines from the 50th annual International Futures Industry Conference in Boca.