New listings to expand successful ETF derivatives segment
Eurex, the international derivatives exchange, announced today that it will list six new options based on the Lyxor ETFs on the indices DJ Russia Titans, DJ Turkey Titans, Hang Seng China Enterprise Index (HSCEI), Hang Seng Index (HSI), CECE Eastern Europe (CECE EUR) and MSCI Emerging Markets. Launch date will be 20 September 2010. Since the launch of the ETF options product suite in May 2010, more than 70,000 contracts have been traded.
“By adding six more ETF derivatives covering emerging markets, we support the expansion of the ETF market by offering hedging opportunities for investors and ETF issuers. Right now, we offer 13 options and three futures on ETFs”, said Peter Reitz, member of the Eurex Executive Board. “Interest and trading activities in ETF derivatives have seen steady growth since our launch a few months ago.”
“Lyxor as the leading provider in emerging markets ETFs is committed to providing clients with the safest and most liquid tools to implement their strategies. Listed options represent the most natural complement to this goal, allowing yield-enhancement and leverage strategies in a very simple and transparent way, accessible to an ever wider array of investors”, added Alain Dubois, Chairman of the Board of Lyxor AM.
Lyxor is the second largest ETF provider in Europe. With the launch of options on Lyxor ETFs, Eurex now offers options on five ETF issuers, which together stand for approximately 75 percent of the assets under management in ETFs in Europe.
The new ETF options will be traded in euro, physically settled (American-style) and have maturities of up to 24 months. The contract size will be 100 units. Société Générale will act as market maker to support liquidity in the order book.
All six Lyxor ETFs are listed at XTF, Deutsche Börse’s ETF trading segment. Since its launch in April 2000, the XTF segment has established its position as the leading trading venue for exchange-traded funds in Europe, with 680 listed funds and a market share of approximately 38 percent by European ETF turnover.
