- Eurex broadens its offering of derivatives on ESG indices with futures on Socially Responsible Investing (SRI) indices.
- Offering aims to serve new user groups with stricter ESG mandates.
- Futures on the following indices to be launched: STOXX Europe 600 SRI, MSCI SRI Europe, MSCI SRI USA, MSCI SRI World, and MSCI SRI EM.
Eurex, Europe’s leading derivatives exchange, will expand its equity-index linked product suite with futures on Socially Responsible Investing (SRI) indices. As of 22 January, Eurex will start trading futures on SRI indices calculated by STOXX and MSCI, both strategic partners in Eurex’s offering of derivatives on ESG indices.
The new derivatives contracts will use the STOXX Europe 600 SRI Index as well as MSCI’s SRI index suite, covering Europe, USA, World, and Emerging Markets.
Offering serves ESG mandates with stricter rules
Contracts based on SRI indices will serve the growing demand for an advanced ESG methodology. SRI indices underlying Eurex’s new futures provide broad exclusions combined with a best-in-class selection approach. With now more than 500 funds tracking SRI indices, these indices have a long-standing history. The top 10 SRI ETFs account for more than USD 45 billion total assets under management.
Randolf Roth, Member of the Eurex executive board: “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.”
The product launch will be supported by a liquidity provider scheme, offering regular rebates and revenue sharing elements.
On the forefront in derivatives on ESG indices
Eurex is a leading liquidity pool for derivatives on ESG indices worldwide. The product suite covers sustainable versions of established benchmarks such as STOXX Europe 600, Euro STOXX 50, DAX, MSCI World and MSCI Emerging Markets. The underlying methodology ranges from negative ESG screening or exclusion methodology to integration and best-in-class approaches.
Since the launch of its first derivatives on ESG indices in February 2019, total volume reached nearly 11 million contracts by the end of 2023. Average daily trading volume in 2023 stood at over 12k contracts, with annual trading volume about 5 percent above 2022. Around 110 Eurex members have been active in Eurex derivatives on ESG indices to date; customers account for about half of the volumes traded.