Eurex to launch Canadian single stock future
23 November 2010 Frankfurt
Image: Shutterstock
Eurex, the international derivatives exchange, has announced that it will launch single stock futures on leading Canadian companies on 25 November 2010. The new listings reflect customer demand for expanded offerings in the rapidly growing equity derivatives segment.
The futures contracts will be based on shares of Bank of Montreal, BCE,
Canadian Imperial Bank of Commerce and Sun Life Financial.
“Single stock futures have quickly become one of our fastest growing
product
segments. The contracts give customers greater flexibility in executing
trading
strategies in more than 750 names in Europe and internationally. The new
Canadian listings will provide members with further trading opportunities
in
the North American market,” said Michael Peters, member of the Eurex
Executive
Board.
Eurex first introduced single stock futures on companies included in the
DAX,
EURO STOXX 50 and SMI indices in October 2005. Since then the product suite
has
expanded to include stocks in additional European countries, the U.S., and
emerging markets Russia and Brazil. Volumes have risen steadily in recent
years; for example, the U.S. single stock futures have grown nearly
fourfold to
more than 498,000 contracts as of end of October 2010 compared to the same
period of 2009.
The specifications of the new contracts will follow the U.S. listings. Each
contract represents 100 shares denominated in U.S. dollar and is cash
settled.
They will have expiry dates up to three years for the next 13 calendar
months,
plus the two following annual contract months out of the December cycle.
The
Eurex Block Trade facility also is allowed for the Canadian single stock
futures.
The futures contracts will be based on shares of Bank of Montreal, BCE,
Canadian Imperial Bank of Commerce and Sun Life Financial.
“Single stock futures have quickly become one of our fastest growing
product
segments. The contracts give customers greater flexibility in executing
trading
strategies in more than 750 names in Europe and internationally. The new
Canadian listings will provide members with further trading opportunities
in
the North American market,” said Michael Peters, member of the Eurex
Executive
Board.
Eurex first introduced single stock futures on companies included in the
DAX,
EURO STOXX 50 and SMI indices in October 2005. Since then the product suite
has
expanded to include stocks in additional European countries, the U.S., and
emerging markets Russia and Brazil. Volumes have risen steadily in recent
years; for example, the U.S. single stock futures have grown nearly
fourfold to
more than 498,000 contracts as of end of October 2010 compared to the same
period of 2009.
The specifications of the new contracts will follow the U.S. listings. Each
contract represents 100 shares denominated in U.S. dollar and is cash
settled.
They will have expiry dates up to three years for the next 13 calendar
months,
plus the two following annual contract months out of the December cycle.
The
Eurex Block Trade facility also is allowed for the Canadian single stock
futures.
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