News Center
Mar 21, 2016

Eurex

Eurex expands equity index segment with new quanto futures

Launch of USD-denominated futures on the Euro STOXX 50 index as of 21 March 2016

Eurex, one of the world’s leading derivatives exchanges and part of Deutsche Börse Group, will introduce Euro STOXX 50 quanto futures as of 21 March 2016. The USD-denominated product allows investors to participate in the performance of the index without being subject to currency fluctuations between Euro and US dollar.

The new quanto futures will finally settle into the same level as the Euro STOXX 50 futures, which are the most liquid derivatives instruments in Europe, but with fees and margins being paid in US dollars. Currently, quanto risks coming from US dollar denominated structured products are primarily hedged by banks via OTC forwards.

“With the new quanto futures, Eurex will offer an on-exchange alternative to the OTC market, enabling the trading of equity/FX correlation but also providing non-European clients the ability to trade European equity exposure in their preferred currency,” explained Mehtap Dinc, member of the Eurex Executive Board, responsible for Product Development.

At market launch, Eurex will offer a special market-making program to incentivize order book liquidity. A number of participants have already signaled their interest in market making.

Media contact:

Patrick Kalbhenn
Eurex Group

Mergenthalerallee 61
65760 Eschborn

T +49-69-211-1 15 00

media-relations@eurexgroup.com

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