Eurex, the derivatives exchange owned by Deutsche Börse, will add new futures and options based on the EURO STOXX 50 ex-financials index from 9 July.
As with existing Eurex index products, the new instruments will be settled in cash, and each contract will have a value of €10 per index point. The future will be tradable between 08.00 and 10.00, and the options between 09.00 and 17.30. An incentive scheme for market makers will support the establishment of sufficient liquidity from the outset.
"Our new index derivatives give market participants additional investment and hedging opportunities for their investment strategies. At the same time the new index products complement our highly liquid future in the European blue chip index EURO STOXX 50," said Mehtap Dinc, head of product development at Eurex.
In addition to Eurex, other derivatives venue operators are also planning to extend the range of contracts they offer.
Turquoise, the London Stock Exchange-owned multilateral trading facility (MTF), plans to expand its derivatives market, with new emerging markets as well as pan-European products. The new products will leverage the London Stock Exchange’s full ownership of index provider FTSE, which it acquired in December last year.
Rival MTF BATS Chi-X Europe is also planning its own derivatives foray with the launch of the Chi-X Europe Russell Index (CHERI) series. The CHERI series will offer index-based derivatives and the MTF claims it will provide lower tracking errors against existing European benchmarks.
Reporting by Sophie Pallier