Eurex expands presence in Latin America with MSCI Brazil futures

European derivatives exchange Eurex will launch futures on the Latin American benchmark index MSCI Brazil, scheduled for 6 September. The move is a response to the growing demand for investment and trading instruments focused on the Latin American region.

Deutsche Börse Group’s derivatives unit has already established a presence in Latin American market with futures on MSCI EM Latin America, as well as with country index futures for Mexico, Peru, Chile, and Colombia.

Futures on MSCI Brazil will allow traders to directly hedge or gain exposure to the largest Latin American market. With the new tool they will be able to take advantage of efficiencies by centralizing MSCI derivatives in one exchange and clearing house, with respective operational, clearing and risk management benefits.


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

Randolf Roth, Eurex

Randolf Roth
Source: LinkedIn

We are pleased that we can finally offer our community direct access to the Brazilian market, which accounts for by far the largest weight – 66 percent – in the MSCI EM Latin America Index. For the first time, futures on the MSCI Brazil will be traded in an order book that offers all the advantages of efficient and transparent pricing.

At the same time, Eurex will also launch futures on MSCI China and will begin to delist MSCI China Free Index derivatives. The MSCI China Free Index will be terminated due to its identical composition and weighting to the MSCI China Index, which is more widely used.

Eurex has the broad range of MSCI derivatives with a total of 186 futures and options. At the end of July, total open interest in MSCI derivatives at Eurex were 2.6 million contracts, over 50%t of the global open interest.


Read Also: