Eurex officially announced today that the EURO STOXX 50 Index Dividend Futures are available for trading by U.S. market participants and investors.
Launched in 2008, the EURO STOXX 50 Index Dividend Futures have become a benchmark for the dividend derivatives market in Europe.
In 2016, two new milestones were reached:
- Open interest exceeded 1 million contracts, a notional of 12 billion euros, prior to December expiration.
- Average daily volume for the year reached a new record of 22,000 contracts.
With 10 yearly expiries from 2017 until 2026 the contracts allow asset managers, institutional investors, hedge funds, banks and other market participants to:
- hedge dividend risk and secure future dividend income,
- extract the dividend risk premium (resulting from supply/demand imbalances and/or the “Pull to Realized” effect),
- take directional positions on dividends,implement calendar or relative value trades and more.
From a margining perspective, the EURO STOXX 50 Index Dividend Futures contracts are now included in the same Liquidation Group along with other Eurex equity index derivatives – including those on the EURO STOXX 50 and DAX Indexes.