Euronext, the leading exchange in the Eurozone, today announced the launch of options on six iShares ETFs on its highly successful and innovative Amsterdam derivatives market. The new option products will provide investors with enhanced investment opportunities in ETFs tracking a broad range of macro themes. The options on ETFs are developed and launched as a result of strong market demand. Participants in the launch are iShares (the ETF unit of Blackrock) global quantitative trading firm Susquehanna that acts as liquidity provider and asset manager Theodoor Gillissen.
Since their introduction to the financial markets, ETFs have experienced substantial growth in the US and more recently also in Europe. A recent change in regulation in the Netherlands, the abolition of distribution fees, has increased interest in ETFs and leading to an extremely healthy environment for these products. Over the last year, trading in ETFs on Euronext Amsterdam increased by 40% and the assets under management of Dutch domiciled ETFs listed on Euronext have more than doubled¹.As the ETF franchise expands, investors are looking for complementary products and this launch responds to that demand, offering them the opportunity to use different trading strategies, giving investors domestic access to trading global benchmarks through exposure to an ETF underlying.
Options on ETFs provide institutional and retail investors with an alternative way of investing in broad indices using an option trading vehicle. They operate like individual equity options providing the same risk management and portfolio opportunities and combine the diversification benefits of ETFs with the flexibility of options².
The first ETF options contracts will be launched on iShares MSCI Emerging Markets UCITS ETF, iShares EURO STOXX 50 UCITS ETF, iShares MSCI Europe UCITS ETF, iSharesS&P 500 UCITS ETF, iShares MSCI World UCITS ETF and iShares MSCI Japan EUR Hedged UCITS ETF.