Eurex to launch new dividend futures
11 November 2010 Zurich
Image: Shutterstock
The international derivatives exchange Eurex has announced that it will
offer futures contracts based on dividends of leading Swiss companies starting on
30 November 2010. The new contracts are based on dividends from ABB, Compagnie Financière Richemont, Roche Holding, Credit Suisse Group, Nestle, Novartis, Schweizerische Rückversicherungs-Gesellschaft, Swisscom, UBS and Zurich
Financial Services. All underlying firms are part of the Swiss blue-chip
index
SMI.
“The listing of our new Swiss single stock dividend futures reflects the
growing demand by investors for exchange-traded and centrally cleared
products.
Based on the success of our listed dividend futures, our customers have
expressed further interest in Swiss-based contracts. Our new offering
enables
investors to participate in the performance linked to the dividend element
of
major Swiss companies”, said Michael Peters, member of the Eurex Executive
Board.
The specifications for the new contracts will be similar to the existing
dividend products. In order to offer continuous quoting and thus support
trading, a designated market making scheme will be offered from day one for
the
Swiss single stock dividend futures. Eurex will list annual contracts in
Swiss
franc in each name from December 2010 out to December 2014.
Introduced in June 2008, Eurex’s dividend derivatives product suite trades
more
than 18,000 contracts daily. Almost 3.8 million contracts have been traded
in
2010 so far. Open interest stands at 1.3 million contracts currently,
representing more than 8.2 billion euro of notional dividend value.
offer futures contracts based on dividends of leading Swiss companies starting on
30 November 2010. The new contracts are based on dividends from ABB, Compagnie Financière Richemont, Roche Holding, Credit Suisse Group, Nestle, Novartis, Schweizerische Rückversicherungs-Gesellschaft, Swisscom, UBS and Zurich
Financial Services. All underlying firms are part of the Swiss blue-chip
index
SMI.
“The listing of our new Swiss single stock dividend futures reflects the
growing demand by investors for exchange-traded and centrally cleared
products.
Based on the success of our listed dividend futures, our customers have
expressed further interest in Swiss-based contracts. Our new offering
enables
investors to participate in the performance linked to the dividend element
of
major Swiss companies”, said Michael Peters, member of the Eurex Executive
Board.
The specifications for the new contracts will be similar to the existing
dividend products. In order to offer continuous quoting and thus support
trading, a designated market making scheme will be offered from day one for
the
Swiss single stock dividend futures. Eurex will list annual contracts in
Swiss
franc in each name from December 2010 out to December 2014.
Introduced in June 2008, Eurex’s dividend derivatives product suite trades
more
than 18,000 contracts daily. Almost 3.8 million contracts have been traded
in
2010 so far. Open interest stands at 1.3 million contracts currently,
representing more than 8.2 billion euro of notional dividend value.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
