01.06.2025

CFTC Approves Eurex Dividend Options

01.06.2025
CFTC Approves Eurex Dividend Options
  • CFTC approval for dividend options is another milestone in Eurex’s ambition to expand its global reach.
  • As of 6 January, EURO STOXX 50® Index Dividend Options and EURO STOXX® Banks Index Dividend Options can be directly traded from the U.S.
  • Eurex’s dividend segment continues to grow with another volume record in 2024.

Eurex reached another milestone in providing global access to its markets. As of 6 January, the leading European derivatives exchange can offer its successful dividend options directly to participants in the U.S. after receiving approval from the U.S. regulator CFTC (Commodity Futures Trading Commission).

Market participants located in the U.S. thus have another instrument at hand to efficiently manage their exposure in European equity markets. Besides EURO STOXX 50 Index Dividend Futures (FEXD) and EURO STOXX Banks Dividend Futures (FEBD), they can now trade and clear the respective options at Eurex (OEXD, OEBD).

Listed dividend derivatives segment is growing

Robbert Booij, CEO of Eurex Frankfurt AG: “Removing access barriers and making our products available to global investors is a top priority for us. With dividend options on key indices such as the EURO STOXX 50 Index and the EURO STOXX Banks Index, U.S. investors have another efficient tool to manage their exposure to the European market.”

Dividends are now widely recognized as an own asset class. The market for listed dividend derivatives has grown accordingly with Eurex holding a globally leading position in terms of contracts traded. The latest step in Eurex’s broad offering of dividend derivatives was last year’s launch of Mid-Curve Options on EURO STOXX 50 Index Dividend Futures which are also tradable in the U.S. This allows for an expanding variety of strategies, enabling market participants to hedge dividend risk more precisely.

2024 was another record year for Eurex dividend derivatives

With over 21 million dividend contracts traded in 2024, Eurex once again increased its total turnover across index dividend futures and options as well as Single Stock Dividend Futures (+ 2.5 percent). Total volume in dividend options even grew 14 percent year-on-year in 2024. Total open interest in the segment at Eurex stood at 8.9 million contracts before December 2024 expiry with a capital value of EUR 63 billion.

Source: Eurex

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