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19 Nov 2020

Eurex

Trading EURO STOXX 50 Dividend and Total Return Futures in uncertain times

As investors sought to hedge income returns amid widespread cuts in company payouts trading in listed derivatives tied to index dividends in the Eurozone reached records this year – to this conclusion comes a current Qontigo blog post.

It describes in detail how Derivatives tied to the Eurozone index and its dividends, especially the EURO STOXX 50 Dividend Futures and the Total Return Futures on the index have enabled traders to hedge their exposure to corporate payouts during this year’s uncertain times.

“Throughout this volatile time, dividend futures provided a liquid and efficient market to support the hedging of dividend exposure across the maturity curve”, said Stuart Heath Equity and Index Product Development at Eurex.