Euronext has introduced an enlarged
suite of single stock futures on a range of its listed stocks.
The launch increases its existing
offering of individual equity options, index futures and options and offers
market participants a broader choice of single stock futures.
Euronext initially plans to offer 86
single stock futures, which it will then expand over time to meet growing
Market participants will be able to use
Euronext’s trading engine UTP and clear trades through central counterparty
Lee Hodgkinson, head of Euronext’s
markets and global sales teams, said expanding its suite of single stock futures
is one of several initiatives being rolled out across the Euronext equity
“We are remixing the commercial profile
of Euronext,” he said.
Euronext has started with its
most liquid and relevant single stock futures for its user base, but will
expand to pan-European names over time. “Any further expansion would be driven
by client demand,” Hodgkinson said.
“Investors use single stock
futures as a hedging and a yield-enhancing tool, and we believe there is room
to increase user choice to market users’ needs.
“At the same time, we’re
providing clearing and capital efficiencies, which are becoming ever more
important as the cost of capital rises and regulation changes.”
Euronext, which is currently
owned by Intercontinental Exchange (ICE) but is expected to float later this
year, has been making moves to strengthen its business.
Meanwhile, NYSE Liffe, also an ICE
company, will expand its index derivatives franchise with the launch of futures
based on MSCI Factor Indices on 3 February.