Eurex To Offer ESG Futures In U.S.
Eurex, one of the world’s largest derivatives exchanges, has received approval from the Commodity Futures Trading Commission (CFTC) to offer its sustainable futures in the U.S. This gives U.S. based investors that apply environmental, social and governance (ESG) criteria direct access to hedging instruments for their portfolios. The new futures will be available in the U.S. starting 8 April.
We are pleased about the CFTC approval of our new #ESG #Futures as the growing trend for ESG #investing has been gaining momentum, not only in #Europe but across the globe. https://t.co/y31iiiiRFi pic.twitter.com/eUTz15QdbZ
— Eurex (@EurexGroup) March 25, 2019
Since their launch on 18 February, almost 20,000 contracts have been traded in this newly introduced segment that applies Low Carbon, Climate Impact and Exclusion criteria in existing benchmark indices. Open Interest currently amounts to nearly 15,000 contracts. Five Market Makers have been actively providing screen prices for all three contracts.
These new types of futures help market participants address the challenges and opportunities of ESG-driven asset management. “They allow us in a credible and cost-effective way to further manage unwanted sustainability risks, seek additional alpha and better meet our various investment mandates,” says Magnus Linder, Head of Derivatives at Swedbank Robur.
Michael Peters, Member of the Eurex Executive Board comments: “We are pleased about the CFTC approval as the growing trend for ESG investing has been gaining momentum, not only in Europe but across the globe, becoming the most widely used strategy by social responsible investors.”
The next focal point of the crypto market will be over-the-counter derivatives.
Overall trading volumes across all products fell 8% from 2020.
Development of a transparent derivatives market is a critical inflection point for the nascent asset class.
Institutional traders are finding it harder to achieve their trading and investment objectives.
A change in focus from gross to net exposure means more demand for optimisation and compression to work in tan...