03.01.2021

FTSE Russell And Eurex Launch Derivatives Partnership

03.01.2021
FTSE Russell And Eurex Launch Derivatives Partnership
  • FTSE Russell partners with Eurex to provide indexes for a suite of FTSE 100 index-based derivatives, soon to be available to trade on Eurex
  • FTSE 100 total return futures, dividend point futures and index futures and options to list on Eurex on 29 March 2021
  • Partnership reflects LSEG’s open approach to delivering the products and services clients demand across markets and global growth of the FTSE Russell index based derivatives ecosystem

FTSE Russell, a leading global index, data and analytics provider, today announces that it has entered into a partnership with Eurex, a leading global derivatives exchange. The partnership will see Eurex launch a range of new UK and global equity index futures and options contracts based on FTSE Russell indexes, starting with the launch of four FTSE 100 index based futures and options contracts on 29 March 2021, including FTSE 100 total return index futures and FTSE 100 dividend point index futures.

The launch comes as global investors are increasingly looking to dividend and total return-oriented UK stocks as an area of opportunity as evidenced by growing international asset flows into the UK. While 2020 saw an unprecedented decline in UK company dividends driven primarily by the global pandemic, market experts expect the situation to improve for FTSE 100 stocks.

The partnership will initially offer market participants trading in highly liquid FTSE 100 derivatives contracts combined with Eurex’s market leading expertise in total return and dividend-based products. Over time, Eurex intends to continue to work with FTSE Russell and expand its product offering in the UK to meet investor demand.

The three futures contracts and one option set to list on Eurex on 29 March 2021 are:

Futures on the FTSE 100 Total Return Index
Futures on the FTSE 100 Declared Dividend Index
Futures and options on the FTSE 100 Index
Waqas Samad, CEO FTSE Russell, head of Investment Solutions, LSEG:

“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. 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.”

Michael Peters, CEO, Eurex said:
“Increased margin pressure, capital requirements and demand for electronic execution are moving OTC segments into futurized listed derivatives. Our innovative TRF offering provides great benefits to address these topics. We are pleased to partner with FTSE Russell to further expand this novel area in particular”.

Source: FTSE Russell

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