Derivatives exchange Eurex will launch futures based on two Bloomberg ESG focused fixed income indexes later this year to support clients looking to hedge and trade sustainable instruments.
The futures, which are due to launch on 27 September, will be based on the Bloomberg Barclays MSCI Global Green Bond Index and the Bloomberg Barclays MSCI Euro Corporate SRI Index.
The derivatives will track the Euro investment grade corporate bond market while applying ESG criteria for those wanting exposure to the global green bond market.
“As well as providing a range of extra benefits to our clients – in terms of broadening the scope of their hedging and trading opportunities – these new futures show our continued leadership in several areas,” said Lee Bartholomew, head of fixed income ETD project design at Eurex. “First, in terms of our listed FI derivatives offering, as well as in our efforts to assist clients with their ESG investment mandates.”
The development marks the latest ESG focused derivatives that have been rolled out by Eurex after it launched a derivatives suite based on the MSCI ESG Enhanced Focus Indexes in May.
Eurex added the new futures were in response to growing demand for sustainable investment products.
“By expanding our relationship with Eurex to introduce the first futures products associated with ESG in the fixed income space, we are proud to support the industry’s growing focus on socially responsible investing,” said Umesh Gajria, global head of index-linked products at Bloomberg.