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Jan 09, 2017

Eurex

EURO STOXX 50® Index Dividend Futures contracts available to U.S. participants

Eurex is pleased to inform you that starting Monday, 9 January 2017, the EURO STOXX 50® Index Dividend Futures are available for trading by U.S. market participants and investors.

Launched in 2008, the EURO STOXX 50® Index Dividend Futures have become a benchmark for the dividend derivatives market in Europe (Eurex Product ID: FEXD; Bloomberg: DEDA Index).

In 2016, two new milestones were reached:

  • Open interest exceeded 1 million contracts, a notional of 12 billion euros, prior to December expiration. 
  • Average daily volume for the year reached a new record of 22,000 contracts.

With 10 yearly expiries from 2017 until 2026 the contracts allow asset managers, institutional investors, hedge funds, banks and other market participants to:

  • hedge dividend risk and secure future dividend income,
  • extract the dividend risk premium (resulting from supply/demand imbalances and/or the "Pull to Realized" effect),
  • take directional positions on dividends,implement calendar or relative value trades and more.

From a margining perspective, the EURO STOXX 50® Index Dividend Futures contracts are now included in the same Liquidation Group (PEQ01) along with other Eurex equity index derivatives - including those on the EURO STOXX 50® and DAX® Indexes.