Building on the success of the EURO STOXX® 50 Total Return Futures and the strong demand from market participants, Eurex will expand the segment to other key STOXX indices. As of 29 March, the exchange will launch EURO STOXX® Banks Index TRFs and EURO STOXX® Select Dividend 30 Index TRFs.
The demand for additional STOXX TRFs is driven by the banks’ need to hedge their structured products with underlying equities. Eurex’s pioneering Total Return Futures have an advantage here as they synthetically replicate the returns of the underlying index equities without the need to own the shares.
Stephan Flaegel, Global Head of Indices and Benchmarks at Qontigo: “Our partnership with Eurex continues to provide investors with innovative access to equity returns. The EURO STOXX Select Dividend 30 Index offers investors the ideal tool to efficiently track high-dividend-yielding companies across the 11 Eurozone countries, while the EURO STOXX Banks Index focuses on a clearly defined industry.”
Randolf Roth, Member of the Executive Board at Eurex: “The shift towards a regulated exchange and centrally cleared environment plays a strategically important role for Eurex. With our innovative Total Return Futures, we have been the first mover in addressing this new business area which supports market participants to mitigate the challenges of UMR, the new margin rules for uncleared transactions.”
EURO STOXX® Banks Index (SX7E) tracks companies from the Banks supersector and has currently 22 components from Eurozone countries. EURO STOXX® Select Dividend 30 Index (SD3E) has 30 components from Eurozone countries which tracks high-dividend-yielding companies from various industries
The launch of further STOXX index TRFs complements Eurex’s existing Total Return Futures offering, which includes Index TRFs, Individual Equity and Basket TRFs and Collateral Index TRFs.
Eurex recently announced that Total Return Futures on the FTSE 100 Index will also be launched on 29 March.