Europe’s largest derivatives exchange has reached another important
strategic milestone. Following the launch of futures and options on the popular MSCI
EAFE index that represents the developed markets of Europe, Australasia and the
Far East, Eurex has become the only exchange that offers futures and options on
all major MSCI indexes. And with the introduction of futures on the EURO STOXX
50 Corporate Bond Index, Eurex is the first mover offering an exchange traded
market for the corporate bond segment in Europe.
The new products meet the market’s needs, especially those of the buy side
whose investment behaviour is undergoing structural changes. Passive
products like Exchange Traded Funds (ETF) are gaining momentum. This affects the
derivatives markets because it creates new hedging needs for asset
“We aspire to become the leading derivatives exchange for global and broad
based indexes. The latest launches and record volumes in our MSCI segment
show that we are on the right track”, said Thomas Book, Eurex CEO and Head of
Derivatives Markets Trading at Deutsche Börse Group.
MSCI EAFE is the leading benchmark for American investors, seeking
international equity performance. According to figures from MSCI, roughly 2
trillion USD are benchmarked against this index. The EURO STOXX 50
Corporate Bond index is the only index that tracks the performance of
Euro-denominated, investment grade corporate bonds of the EURO STOXX 50 constituents.
“The European market for corporate bonds plays a key role in the financial
ecosystem. It has grown consistently after the financial crisis, both in
terms of market participants and overall assets under management”, said Mehtap
Dinc, Member of the Eurex Board and Head of Derivatives Product Development at
The new environment creates demand for innovative hedging solutions in the
form of Exchange Traded Derivatives. “The same is true for MSCI products. With
more providers of MSCI related vehicles and growing competition on pricing
these, an increased need for cost-effective and efficient hedging tools in the form
of futures and options arises”, Dinc added.