Jun 29, 2018
Eurex
Happy birthday: 30 years of DAX®
“Through the futures and options we offer on the DAX® index family, Eurex has a strong connection to the DAX®. That is why we at Eurex wish the DAX® a very happy 30th birthday and all the best for the future,” says Michael Peters, Member of the Executive Board at Eurex.
One of the first financial products with a DAX® underlying was the DAX® Futures (FDAX®), which was introduced in November 1990. Today, Eurex offers futures and options on the DAX®, the DivDAX®, the MDAX® and the TecDAX®. Unlike most other international indices, the DAX® indices are performance indices, which means that dividends are fully reinvested. This contributes to the growing index levels – and to the growing notional of the DAX® derivatives.
Flexible, secure, transparent: the Mini-DAX® Futures
The growing size of the notional, however, value can also present a challenge in the hedging of structured product and for retail investors who require smaller contract sizes. To also meet their needs and to broaden market participation, we launched the Mini-DAX® Futures (FDXM®) in October 2015, which have since been available in parallel to the DAX® Futures.
With one fifth of the contract size of the DAX® Futures, the Mini-DAX® Futures provide optimized risk hedging while only requiring lower margins; thus, they present retailers and smaller portfolios with high flexibility. Moreover, the Mini-DAX® Futures are designed to provide clients with maximum security, for example through a liquid order book and the settlement of transactions through Eurex Clearing. At the same time, the fact that all market data is public guarantees the transparency in the trading of Mini-DAX® Futures.
The DAX® derivatives are attractive for diverse client groups
Since the introduction of the Mini-DAX® Futures, about 14.4 million contracts have been traded, and the product complements our other DAX® derivatives.
“Our futures and options on the DAX® index family are custom-tailored,” Michael Peters explains. “Clients range from big players who hedge risks with DAX® Futures to those who want to gain exposure to Germany’s innovative manufacturing and technology base through derivatives on the MDAX® and TecDAX® to retailers whose needs for smaller contracts are met by the Mini-DAX® Futures.”
Thus, the DAX® does not only provide an up-to-date and representative reflection of the German stock market but is also highly demanded by diverse customers as an underlying for futures and options. All that remains for us to say: congratulations, DAX®, and to a prosperous future!
