Eurex launching ESG fixed income derivatives with Bloomberg indexes

Eurex announced it’s launching futures on the Bloomberg Barclays MSCI Euro Green Bond SRI and Euro Corporate SRI indexes. The new derivatives will allow asset managers and other market participants to further adapt their investment and trading strategies to comply with ESG mandates and optimally manage the risk of ESG-driven portfolios.

They also offer the possibility of generating additional alpha via synthetic exposure to ESG fixed income indexes, and come with benefits of price transparency and regulatory compliance via the Central Limit Order Book and CCP clearing. The ESG fixed income landscape currently comprises around $53 trillion in outstanding bonds globally and has grown by over $10 trillion in 2020 alone.

Futures on the Bloomberg Barclays MSCI Euro Corporate SRI Index will give investors a valuable investment vehicle to track the Euro investment grade corporate bond market, applying certain ESG criteria. Futures on the Bloomberg Barclays MSCI Global Green Bond Index aim to provide a liquid and easily accessible solution for market participants willing to take exposure to the global green bond market.

Lee Bartholomew, head of Fixed Income ETD Product Design at Eurex, said in a statement: “As well as providing a range of extra benefits to our clients – in terms of broadening the scope of their hedging and trading opportunities – these new futures show our continued leadership in several areas. First, in terms of our listed FI derivatives offering, as well as in our efforts to assist clients with their ESG investment mandates. We are very proud to be pioneers in this vitally important segment and will look to build a portfolio of products to aid clients to access liquidity.”

“By expanding our relationship with Eurex to introduce the first futures products associated with ESG in the fixed income space, we are proud to support the industry’s growing focus on socially responsible investing,” said Umesh Gajria, global head of Index-linked Products at Bloomberg, in a statement. “Our multi-asset class index suite provides myriad opportunities for product innovation, such as these new derivatives.”


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