Sign up for free newsletter


Strong demand in Eurex single stock futures

Traded volumes in futures on the DAX and Dow Jones EURO STOXX 50 benchmark indexes are continuing their dynamic growth trend this year.

In February 2006, nearly 154,000 Single Stock Futures were traded at Eurex. Designated Market Makers will continue to guarantee high liquidity - also for the new Single Stock Futures contract on Hypo Real Estate.

The volume of Eurex Single Stock Futures has grown dramatically since their launch on October 24, 2005: The number of traded contracts rose to just under 154,000 in February, which equates to a volume of EUR 1.4 billion.

Compared to 14,000 contracts in November 2005, growth has been impressive, and the 62,000 contracts traded in December already anticipated the strong momentum that was to follow in 2006. Open interest amounted to 414,000 contracts at the end of February.

Legal changes boost demand from institutional investors

Recent amendments to UCITS III (the EU directive on Undertakings for Collective Investments in Transferable Securities), which came into effect in 2005, and the associated liberalization of the regulatory framework, have simplified the application of derivatives for fund management companies.

At the same time, institutional investors increasingly look for instruments to implement complex trading strategies, and to manage their risks. With Single Stock Futures, Eurex has created a product category which accommodates both developments: Futures contracts on single stocks not only permit institutional investors to build up short positions in individual issues, but facilitate numerous strategies to optimize the asset allocation of individual stocks in their equity portfolios. The strong interest shown by institutional users in Single Stock Futures is thus not surprising.

One-stop shopping offers advantages for Eurex participants

Eurex Single Stock Futures have completed the exchange's equity derivatives product range: Together with equity options, and futures and options on stock indexes, market participants have access to all instruments through a single trading and clearing platform. This provides the basis for efficient settlement processes, with capital commitments kept low thanks to cross margining effects.

Extension of Designated Market-Making

Reflecting the strong interest in Single Stock Futures, the Designated Market-Making scheme for futures on single stocks will be extended until December 2006. Order book liquidity in Eurex Single Stock Futures is currently supported by four Market Makers who quote on a continuous basis and thereby enhance price quality.

New Single Stock Futures contract on Hypo Real Estate

Eurex further extended its product range by adding a Single Stock Futures contract on Hypo Real Estate, on February 20, 2006. This followed the inclusion of this stock in the blue chip index DAX.

Overall, 80 futures on German, Spanish, Italian, French, Irish, Finish, Dutch and Swiss stocks can now be traded on Eurex, with further contracts to be added over the next months.

For detailed contract specifications of all Single Stock Futures, please refer to the Eurex website

For any further information, contact: [email protected]

For further information and related articles on Trading & Execution, please click here

5 days 11 hours from now - Hong Kong
6 days 11 hours from now - Toronto
1 week 1 day from now - Shanghai
Sun, 09/04/2017   - Dubai
Mon, 15/05/2017   - London
Mon, 15/05/2017   - London
IKONIC Fund Services Ltd.
Tue, 29/11/2016 - 12:28
Backstop Solutions Group
Tue, 08/11/2016 - 18:44
The Gemini Companies
Mon, 17/10/2016 - 12:51
other gfm publications