03.23.2021

Eurex Introduces First Micro Futures

  • New micro futures contracts on DAX®, EURO STOXX® 50 and SMI®
  • Smaller contract sizes to grant access to liquid derivatives markets for more investors

Eurex will extend its strategically important equity index derivatives segment with the launch of micro contracts on three European benchmarks. The new Micro-DAX, Micro-EURO STOXX 50 and Micro-SMI futures will start trading on 19 April. Globally, investors’ demand for smaller sized futures has increased significantly. With the new micro contracts, Deutsche Börse’s derivatives arm responds to this trend, granting smaller and medium sized investors access to transparent, price efficient and liquid markets.

Due to the contract value of EUR 1 or CHF 1 per index point, the new micro contracts have a value equivalent to the current index level, ranging between EUR 3,500 to EUR 14,500. In comparison, existing futures contracts have a contract value of multiple times of the index level or between EUR 35,000 and 360,000.

With smaller contract sizes investors require lower initial capital to participate in trading and clearing these liquid futures markets. This allows for more flexible and targeted trading and hedging strategies.

Randolf Roth, Member of the Eurex Executive Board: “The new contracts are the right size for the needs of investors with smaller investment accounts like private wealth managers or individual traders. But this is only part of it. We see also demand from institutional and professional investors who are seeking to scale their equity index exposure and to precisely hedge existing equity portfolio positions.”

The contract specifications of the new contracts are otherwise in line with the existing contract specifications for DAX, Euro STOXX 50 and SMI.

Source: Eurex

Related articles

  1. Instinet authorised for cash research payments

    The firm will bolster its derivatives efforts, launch new businesses and make acquisitions.

  2. This year Webull began providing connectivity to Cboe’s U.S. equities markets.

  3. The exchange also had record equity futures and options volumes.

  4. The association supports the CFTC’s effort to establish new clearing mandates.

  5. 2021 marked the fourth consecutive year of record-setting trading activity.