Euronext has introduced an enlarged suite of single stock futures on a range of its listed stocks.
The launch increases its existing offering of individual equity options, index futures and options and offers market participants a broader choice of single stock futures.
Euronext initially plans to offer 86 single stock futures, which it will then expand over time to meet growing demand.
Market participants will be able to use Euronext’s trading engine UTP and clear trades through central counterparty LCH.Clearnet.
Lee Hodgkinson, head of Euronext’s markets and global sales teams, said expanding its suite of single stock futures is one of several initiatives being rolled out across the Euronext equity derivatives sector.
“We are remixing the commercial profile of Euronext,” he said.
Euronext has started with its most liquid and relevant single stock futures for its user base, but will expand to pan-European names over time. “Any further expansion would be driven by client demand,” Hodgkinson said.
“Investors use single stock futures as a hedging and a yield-enhancing tool, and we believe there is room to increase user choice to market users’ needs.
“At the same time, we’re providing clearing and capital efficiencies, which are becoming ever more important as the cost of capital rises and regulation changes.”
Euronext, which is currently owned by Intercontinental Exchange (ICE) but is expected to float later this year, has been making moves to strengthen its business.
Meanwhile, NYSE Liffe, also an ICE company, will expand its index derivatives franchise with the launch of futures based on MSCI Factor Indices on 3 February.