The Commodity Futures Trading Commission (CFTC) has approved Eurex dividend options for trading in the US as of today, 6 January.
Robbert Booij
US market participants can now more efficiently manage their exposure in European equity markets through these additional instruments, said Eurex.
Specifically, EURO STOXX 50 Index Dividend Options and EURO STOXX Banks Index Dividend Options can now be directly traded from the US.
With dividends increasingly recognised as an asset class in their own right, the market is ripe for further scope in this space when it comes to listed dividend derivatives.
Robbert Booij, chief executive of Eurex Frankfurt, highlighted that this is a milestone as Eurex seeks to expand its global reach.
“Removing access barriers and making our products available to global investors is a top priority for us. With dividend options on key indices such as the EURO STOXX 50 Index and the EURO STOXX Banks Index, US investors have another efficient tool to manage their exposure to the European market.”
The move follows Eurex’s launch of mid-curve options on EURO STOXX 50 Index Dividend Futures last year, which are also tradable in the US.
Speaking at a closed Deutsche Boerse roundtable last November, Erik Müller, chief executive of Eurex Clearing, highlighted exchange traded derivatives (ETD), interest rate swaps (IRS) and repo as the three key pillars for the business.