Introduction of first global STOXX dividend index derivatives/Launch of STOXX Global Select Dividend 100 Index contracts on 20 July
Eschborn, 21-7-2015 — /EuropaWire/ — The international derivatives marketplace Eurex Exchange, part of Deutsche Börse Group, launched new futures and options based on the STOXX Global Select Dividend 100 Index yesterday. With this step, Eurex Exchange expands its dividend index product suite, which currently comprises the DivDAX and Euro STOXX Select Dividend 30 indices. Whereas the two existing contracts cover German and European stocks, the STOXX Global Select Dividend 100 Index offers investors the ideal tool to invest into 100 high dividend-yielding companies across developed countries from North America, Europe and Asia/Pacific. As of June 2015, nearly 1.7 billion euros in assets are invested in ETFs that are based on the STOXX Global Select Dividend 100 Index.
“The STOXX Global Select Dividend 100 Index was launched in 2007 and has been one of the first innovative smart beta concepts that STOXX has brought to the market,” said Hartmut Graf, chief executive officer, STOXX Limited. “By weighting the components in this index by dividend yield rather than market cap, investors are able to participate directly in the performance of high-dividend paying companies.”
Mehtap Dinc, member of the Eurex Executive Board, commented: “Smart beta and systematic factor exposure strategies are being increasingly used. Therefore investment demand for products incorporating these factors continues to grow. With the launch of these new dividend index futures and options contracts, we offer for the first time an investment and hedging tool for a global high-dividend yield strategy.”
The STOXX Global Select Dividend 100 Index combines the highest-yielding stocks relative to their home markets. The 100 index components are weighted by their indicated annual net dividend yield, i.e. the largest dividend-yielding companies have the highest weight in the index. The weight of individual components in the index is capped at 10 percent in order to prevent the index from being dominated by single high-dividend paying stocks. The composition of the index is reviewed on an annual basis in March.
Eurex Exchange offers a special market-making incentive program. The new futures and options are cash settled, and the contract value is 10 euros per index point.
About Eurex Exchange
Eurex Exchange is one of the world’s leading derivatives exchanges, serving a growing global distribution network. It offers more than 2,000 products covering all major as well as alternative asset classes. Our marketplace – based on innovative IT infrastructure – is gateway to the most heavily traded euro-denominated equity index and fixed-income derivatives.
As part of Eurex Group, we provide access to a global liquidity network with daily trading volumes of around 9 million contracts together with the International Securities Exchange (ISE) and the European Energy Exchange (EEX). Eurex Exchange uses Eurex Clearing, one of the leading central counterparties globally.
Eurex Group is comprised of Eurex Exchange, the International Securities Exchange (ISE), the European Energy Exchange (EEX), Eurex Clearing, Eurex Bonds and Eurex Repo.
Eurex Group is owned by Deutsche Börse AG (Xetra: DB1).
About STOXX Limited
STOXX Ltd. is a global index provider, currently calculating a global, comprehensive index family of over 7,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600, STOXX Ltd. maintains and calculates the STOXX Global index family which consists of total market, broad and blue-chip indices for the regions Americas, Europe, Asia/Pacific and sub-regions Latin America and BRIC (Brazil, Russia, India and China) as well as global markets.
To provide market participants with optimal transparency, STOXX indices are classified into three categories. Regular “STOXX” indices include all standard, theme and strategy indices that are part of STOXX’s integrated index family and follow a strict rules-based methodology. The “iSTOXX” brand typically comprises less standardized index concepts that are not integrated in the STOXX Global index family, but are nevertheless strictly rules-based. While indices that are branded “STOXX” and “iSTOXX” are developed by STOXX for a broad range of market participants, the “STOXX Customized” brand covers indices that are specifically developed for clients and do not carry the STOXX brand in the index name.
STOXX indices are licensed to more than 500 companies around the world as underlyings for Exchange Traded Funds (ETFs), futures and options, structured products and passively managed investment funds. Three of the top ETFs in Europe and 30% of all assets under management are based on STOXX indices. STOXX Ltd. holds Europe’s number one and the world’s number three position in the derivatives segment.
In addition, STOXX Ltd. is the marketing agent for the indices of Deutsche Boerse AG and SIX, amongst them the DAX and the SMI indices. STOXX Ltd. is part of Deutsche Boerse AG and SIX.
STOXX and its owners and licensors do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX and its owners and licensors are not providing investment advice through the publication of indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX or its owners on the merits of that company. Financial instruments based on the STOXX®, DAX® or SMI® indices are in no way sponsored, endorsed, sold or promoted by STOXX or its owners.
Media contact:
Heiner Seidel
Eurex Group
Mergenthalerallee 61
65760 Eschborn
T +49-69-211-1 77 64
media.relations@eurexgroup.com
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