Eurex to launch derivatives on Socially Responsible Investing indices

New contracts based on SRI indices will be calculated by STOXX and MSCI, meeting growing demand for an advanced ESG methodology.

Derivatives exchange Eurex will expand its equity-index linked product suite with futures on Socially Responsible Investing (SRI) indices.

Starting from 22 January, Eurex will begin trading futures on SRI indices calculated by STOXX and MSCI, strategic partners in Eurex’s offering of derivatives on ESG indices. 

The STOXX Europe 600 SRI index will be used by the new derivatives contracts, as well as MSCI’s SRI index suite, covering Europe, USA, world and emerging markets. 

Contracts based on SRI indices will meet growing demand for an advanced ESG methodology, according to Eurex.

“We are very pleased to further strengthen our leading role in the ESG segment with two strategically strong index providers,” said Randolf Roth, member of the Eurex executive board.

“Our offering will certainly appeal to new user groups that have stricter ESG mandates and need to invest responsibly, such as asset managers who invest on behalf of endowment funds or foundations.”

Read more: Eurex focused on harmonising onto one risk management framework

Eurex stated that the product launch will be supported by a liquidity provider scheme, offering regular rebates and revenue sharing elements. 

Derivatives on ESG indices were first launched by Eurex in February 2019 and since then, total volume reached nearly 11 million contracts by the end of 2023.

Average daily trading volume last year was more than 12,000 contracts, with annual trading volume roughly 5% above 2022.

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