Eurex has reached another milestone in providing global access to its markets. As of 6 January, Eurex can offer its successful dividend options directly to participants in the U.S. after receiving approval from the Commodity Futures Trading Commission (CFTC).
Market participants located in the U.S. thus have another instrument at hand to efficiently manage their exposure in European equity markets. Besides EURO STOXX 50 Index Dividend Futures (FEXD) and EURO STOXX Banks Dividend Futures (FEBD), they can now trade and clear the respective options at Eurex (OEXD, OEBD).
Robbert Booij, CEO of Eurex Frankfurt AG, commented:
“Removing access barriers and making our products available to global investors is a top priority for us. With dividend options on key indices such as the EURO STOXX 50 Index and the EURO STOXX Banks Index, U.S. investors have another efficient tool to manage their exposure to the European market.”
Dividends are now widely recognized as an own asset class. The market for listed dividend derivatives has grown accordingly with Eurex holding a globally leading position in terms of contracts traded. The latest step in Eurex’s broad offering of dividend derivatives was last year’s launch of Mid-Curve Options on EURO STOXX 50 Index Dividend Futures which are also tradable in the U.S. This allows for an expanding variety of strategies, enabling market participants to hedge dividend risk more precisely.
