Eurex, the international derivatives exchange operated by Deutsche Börse and SIX Swiss Exchange, will launch new equity options based on 30 of the most liquid UK-listed stocks on 18 January, 2010.
The new instruments will be physically settled by Euroclear UK & Ireland, the first time Eurex has offered sterling-denominated equity options with home market settlement.
“This launch represents an important step in our strategy to continuously expand our product offering with new contracts,” said Peter Reitz, member of the Eurex Executive Board. “The new UK equity options extend our broad coverage of the Dow Jones STOXX 600 index components. UK equity options will enable our customers to better hedge their exposure to the UK equity market and will simultaneously offer new trading opportunities.”
Eurex and Eurex Clearing have been officially recognised by statutory instruments as financial intermediaries in the UK and will thus be exempted from stamp duty. The customer business of all Eurex Clearing members will also automatically be exempted.
Eurex said the new options will have maturities of up to two years, adding that a market making scheme is planned to ensure on-screen liquidity. During the first eight months of trading, supporting market makers can qualify for a 50% revenue sharing program lasting for two years. Trading hours will be from 9:00 am until 5:30 pm CET.