Nasdaq has launched options contracts on the OMX Stockholm 30 ESG index, as it looks to expand its ESG derivatives offering.
Nasdaq’s suite now includes both options and futures contracts based on the ESG benchmark index, which since its launch in June 2018, has grown into one of the most traded indexes in Europe.
Nasdaq’s clients, including Swedbank Robur, collaborated alongside Nasdaq to develop the new product, which is aligned with the exchange’s objective to address the increasing demand for more sustainable investment solutions.
“We are very pleased with the launch of OMXS30 ESG options, as Nasdaq is creating new opportunities for investors with a sustainable focus to optimise their risk and return profile,” said Magnus Linder, equity derivatives trading and portfolio optimisation at Swedbank Robur.
“To be successful, you need to use the entire financial toolbox. We look forward to continuing our partnership with the aim to strengthen the ESG investor landscape in the region.”
In recent months, Nasdaq has worked collaboratively with its clients across the globe to consistently grow its suite of products and services that aim to support more sustainable investments and risk management.
Earlier this month, Nasdaq launched an ESG version of the OMX Stockholm Benchmark Index, which was created to track the performance of the securities whose issuers meet specific ESG criteria.
In addition, other ESG initiatives carried out by Nasdaq recently include the acquisition of carbon removal marketplace Puro.earth as well as the launch of ESG Data Hub, which offers investors access to sustainability data.
“With the success of our ESG index futures contracts as a platform, the addition of options allows us to round out our offering and provide our clients a complete suite of derivative products based on one of the leading ESG indexes in Europe,” says Alessandro Romani, head of European derivatives at Nasdaq.
“This launch marks the next step in our journey to better help end investors looking to invest responsibly while maintaining the compelling access to liquidity that the OMXS30 index can offer.”