Eurex Launches ESG Options
The derivatives exchange Eurex extends its pioneering role in ESG derivatives by adding the first exchange-traded ESG options on a European benchmark to its product range. Launch of the new options, which are based on the leading STOXX Europe 600 ESG-X Index, is scheduled for October 21.
We’re excited to announce the launch of the first exchange-traded #ESG options on a European benchmark! Based on the leading #STOXX® Europe 600 ESG-X #index, the options are scheduled to be launched on 21 October. https://t.co/6AggfRlFu6 pic.twitter.com/6MFNU36NCd
— Eurex (@EurexGroup) October 2, 2019
Michael Peters, Member of the Eurex Executive Board: “Options are the next logical step to extend our ESG offering on European benchmarks. As market feedback on our sustainable derivatives is very positive, we will continuously expand our product range closely aligned to the needs of our clients.”
Andrew Fisher, Managing Director at Goldman Sachs: “With the market becoming increasingly focused on sustainable investing, we are excited by this new initiative from Eurex and look forward to bringing these new products to our clients. We believe these options will offer market participants a good toolkit to manage their risk as the market grows in this area.”
At the same time, Eurex will further complement its STOXX Select products with futures and options that capture the performance of European companies with high dividend payments, low volatility and a relatively high ESG score.
In February 2019, Eurex was the first exchange introducing an ESG product suite based on European benchmarks. The three futures on the highly liquid European STOXX benchmarks covering ESG Exclusions, Low Carbon and Climate Impact support market participants to manage sustainability-driven challenges.
Seven months after their launch in February 2019, STOXX Europe 600 ESG-X Index Futures (FSEG), which are by far the most popular contracts, have reached over 362,000 traded contracts with 55 per cent of the flow coming from end clients and asset owners. During the peak of the most recent roll period open interest even reached 85,000 contracts worth EUR 1.2 billion notional value.
Lack of ESG screening is a pain point for some market participants.
€STR swaps will inherit much of the pre-existing liquidity from the EONIA swaps market.
Income at clearing house LCH rose 19% in the third quarter.
ESMA finds two NCAs lagged behind in integrating Emir data quality controls.
Clients will be able access the data from anywhere with an internet connection.