Eurex to extend its index derivatives segment
The international derivatives market Eurex Exchange announced today that it has signed a licensing agreement with the index provider MSCI. In the course of 2013, Eurex aims to launch derivatives on around ten regional and 20 country indices. The offering will comprise the major regional indices for developed markets like the MSCI World and MSCI Europe Indices and a broad coverage of emerging markets and the respective country indices, including the MSCI Emerging Markets and MSCI Frontier Markets Indices. The new index derivatives will provide Eurex clients access to emerging markets, which become increasingly important for global investors. This extension will add a significant number of index derivatives to the existing segment which currently covers 70 different indices.
“Based on demand of our members and market participants, we will expand our product suite. The underlying MSCI indices are highly regarded in the financial industry, especially by buy-side institutions,” said Peter Reitz, member of the Eurex Executive Board. “Currently, there are only a few listed index derivatives available globally based on the respective indices. With our planned product initiatives we will offer new hedging opportunities for institutional investors.”
“We are delighted to extend our existing index licensing agreement with Eurex to include a broader set of MSCI country and regional indices that are amongst some of the most widely used indices globally by institutional investors,” said Baer Pettit, Managing Director and Head of the MSCI Index Business. “With close to USD 7 trillion estimated to be benchmarked to MSCI indices globally, the availability of derivatives based on our indices will provide an important tool for investors managing their MSCI benchmarked portfolios.”
Eurex currently offers futures and options based on the MSCI Russia Index (since June 2008) and futures based on the MSCI Japan Index (since October 2009). Both are denominated in US dollar and are cash settled.