Eurex is enhancing its product range by introducing futures on socially responsible investing (SRI) indices.
Scheduled to start trading on January 22, this expansion includes futures on SRI indices, a collaboration between Eurex and index providers STOXX and MSCI, as part of its derivatives on ESG indices.
The new derivatives contracts will focus on the STOXX Europe 600 SRI Index and MSCI’s suite of SRI indices, covering regions such as Europe, the USA, the world and emerging markets. The initiative aims to cater to investors with more stringent ESG mandates.
The SRI indices, the basis for Eurex’s new futures, feature a comprehensive exclusion approach coupled with a best-in-class selection method. These indices are tracked by more than 500 funds, demonstrating their significance in the investment market. Notably, assets under management for the top 10 SRI ETFs (Exchange-Traded Funds) exceed $45 billion.
To facilitate the launch, Eurex will introduce a liquidity provider scheme, which includes incentives like rebates and revenue-sharing elements, to promote active participation in this new market segment.
Randolf Roth, member of the Eurex executive board, said, “We are very pleased to further strengthen our leading role in the ESG segment with two strategically strong index providers.
“Our offering will certainly appeal to new user groups that have stricter ESG mandates and need to invest responsibly, such as asset managers who invest on behalf of endowment funds or foundations.”
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