Derivatives exchange Eurex will launch USD-denominated derivatives on the MSCI Russia Index, on 23 June 2008. Eurex has offered a range of products based on Russian underlyings since April 2007, but these are the exchange’s first derivatives based on MSCI indices.
“With this new index derivative, we can participate in the rapidly expanding Russian market,” said Peter Reitz, member of the Eurex board, in a statement. “We are offering our clients attractive, cost-efficient and liquid investment and diversification opportunities in one of the most important emerging markets.”
The MSCI Russia Index comprises the largest Russian companies by market capitalisation that meet minimum liquidity and free float screens. It is open to companies incorporated in Russia with a listing in Russia, London or New York.
The weighting of the components is not capped. The index contains 32 companies, and is reviewed four times a year. Settlement of the index future and index option will be made in cash, with one index point worth $25. The future expires in March, June, September and December. Index options are offered with expirations up to 24 months.
In addition to the new index derivatives, Eurex will be listing a new option on Russian stock OJSC Rosneft on the same date. The new contract comprises 100 shares, has a maximum maturity of 12 months and delivery will be physical. With this, the number of equity options on Russian underlyings available at Eurex will increase to five. Additionally, Eurex offers trading in 19 Russian equity futures.