Menu

Eurex adds new factor futures to its equity index segment



Eurex has revealed it is expanding its equity index segment with 12 new factor futures as the demand for factor-based instruments increases. The new products will be released on 26 April.

Factor investment has recently gained popularity among index segments. The process involves targeting specific drivers of return which differ from traditional beta.

Randolf Roth, Member of the Executive Board of Eurex commented:

Randolf Roth, Eurex
Randolf Roth
Source: LinkedIn

The extension of the segment follows demand from institutional investors to use factor futures for tactical overlay strategies. With the new futures, Eurex will for the first time provide a consistent factor-based offering across regions, which investors can use to manage global factor portfolios.”

Eurex’s new products are based on Qontigo’s STOXX Industry Neutral Ax Factor Indices suite. The offering includes futures based on the five standard factors: Value, Momentum, Low Risk, Quality and Size. Among the new products is Multi-Factor Future, which combines the five exposures in one product. The futures encompass factors in European and US markets, represented by the STOXX Europe 600 and the STOXX USA 500 indices. All factors use Axioma factor risk model.

Eurex

Both part of Deutsche Börse Group, Eurex and Qontigo, have teamed up to offer factor investors an easy, transparent and cost-efficient alternative to trading the underlying equities or using OTC instruments.

Stephan Flaegel, Global Head of Indices and Benchmarks, Qontigo said:

Stephan Flaegel, Qontigo
Stephan Flaegel
Source: LinkedIn

Our STOXX Industry Neutral Ax Factor Indices suite relies on commercially accepted and academically tested factor definitions and transparent index construction rules. It sets a new, high-quality industry standard in this growing market segment.

Product specifications for the new futures follow standards already in used in Eurex’s derivatives including the STOXX Europe 600 Index Futures.

Related News

Eurex adds new factor futures to its equity index segment

0
Send this to a friend