Eurex Expands ESG Derivatives Offering with Socially Responsible Investing Futures

Eurex Expands ESG Derivatives Offering with Socially Responsible Investing Futures

(IN BRIEF) Eurex, Europe’s leading derivatives exchange, is set to introduce futures on Socially Responsible Investing (SRI) indices, broadening its ESG-linked product range in collaboration with index providers STOXX and MSCI. These new derivatives contracts, starting trading on January 22, will be based on SRI indices, including STOXX Europe 600 SRI and MSCI’s SRI index suite covering Europe, the USA, World, and Emerging Markets. The expansion aims to cater to the increasing demand for advanced ESG methodologies, targeting user groups with stringent ESG mandates, such as asset managers handling endowment funds and foundations. Eurex’s leadership in ESG derivatives trading is supported by liquidity provider incentives and a growing range of sustainable benchmarks.

(PRESS RELEASE) FRANKFURT, 18-Jan-2024 — /EuropaWire/ — Eurex, Europe’s leading derivatives exchange, will expand its equity-index linked product suite with futures on Socially Responsible Investing (SRI) indices. As of 22 January, Eurex will start trading futures on SRI indices calculated by STOXX and MSCI, both strategic partners in Eurex’s offering of derivatives on ESG indices.

The new derivatives contracts will use the STOXX Europe 600 SRI Index as well as MSCI’s SRI index suite, covering Europe, USA, World, and Emerging Markets.

Offering serves ESG mandates with stricter rules

Contracts based on SRI indices will serve the growing demand for an advanced ESG methodology. SRI indices underlying Eurex’s new futures provide broad exclusions combined with a best-in-class selection approach. With now more than 500 funds tracking SRI indices, these indices have a long-standing history. The top 10 SRI ETFs account for more than USD 45 billion total assets under management.

Randolf Roth, Member of the Eurex executive board: “We are very pleased to further strengthen our leading role in the ESG segment with two strategically strong index providers. Our offering will certainly appeal to new user groups that have stricter ESG mandates and need to invest responsibly, such as asset managers who invest on behalf of endowment funds or foundations.”

The product launch will be supported by a liquidity provider scheme, offering regular rebates and revenue sharing elements.

On the forefront in derivatives on ESG indices

Eurex is a leading liquidity pool for derivatives on ESG indices worldwide. The product suite covers sustainable versions of established benchmarks such as STOXX Europe 600, Euro STOXX 50, DAX, MSCI World and MSCI Emerging Markets. The underlying methodology ranges from negative ESG screening or exclusion methodology to integration and best-in-class approaches.

Since the launch of its first derivatives on ESG indices in February 2019, total volume reached nearly 11 million contracts by the end of 2023. Average daily trading volume in 2023 stood at over 12k contracts, with annual trading volume about 5 percent above 2022.  Around 110 Eurex members have been active in Eurex derivatives on ESG indices to date; customers account for about half of the volumes traded.

About Eurex

Eurex is the leading European derivatives exchange and – with Eurex Clearing – one of the leading central counterparties globally. As architects of trusted markets characterized by market liquidity, efficiency, and integrity, we provide our customers with innovative solutions to seamlessly manage risk. For more information, visit www.eurex.com

Media Contact:

media-relations@deutsche-boerse.com

SOURCE: Deutsche Börse Group