FTSE Russell and Eurex partner to launch derivatives contracts

The partnership between the two entities will see three futures contracts and one option list on the 29 March.

Index provider FTSE Russell and global derivatives exchange Eurex have entered into a partnership that will see them launch three futures contracts and one option on 29 March.

The pair said the launch of the new derivatives offering was in response to market demand as investors globally are increasingly looking to dividend and total return-oriented UK stocks as an area of growth.

“We are delighted to work closely with Eurex in meeting growing investor demand for risk management products on the widely used FTSE 100 benchmark index,” said Waqas Samad, chief executive of FTSE Russell and head of investment solutions at LSEG.

“Our collaboration with Eurex reflects LSEG’s commitment to supporting clients across the markets and communities that we serve, the strength of the FTSE Russell index franchise and the ability of Eurex to meet client needs with innovative solutions.”

The partnership will see futures listed on the FTSE 100 total return index, the FTSE 100 declared dividend index contract, and futures and options on the FTSE 100 Index contract.

“Increased margin pressure, capital requirements and demand for electronic execution are moving OTC segments into futurised listed derivatives. Our innovative TRF offering provides great benefits to address these topics,” said Michael Peters, chief executive of Eurex.

This is the second partnership struck by FTSE Russell with an exchange to launch a derivatives offering this year so far.

In January, FTSE Russell launched a suite of environmental social and corporate governance (ESG) derivatives contracts with the Singapore Exchange (SGX) following a major partnership set up in August.