Eurex integrates Markit dividend forecasts in pricing models

Eurex has integrated Markit's dividend forecasts into its calculation of settlement prices.

Markit's dividend forecasts will enhance the exchange's determination of settlement prices by providing clients with improved dividend information out to four years ahead, based on detailed analysis and research.

Peter Reitz, Member of the Executive Board of Eurex, said: "Eurex has actively increased its equity-based product range this year with the introduction of Single Stock Futures contracts on all 370 Euro and Swiss Franc-denominated components of the Dow Jones STOXX 600 index and the introduction of additional equity options, bringing the total number of equity options available on Eurex to 180. This broader range of equity derivative products has meant an even greater need for accurate dividend forecasts, given their impact on settlement prices. In recognition of the increased importance of reliable input data, and in order to maintain our leading role in the exchange-traded equity markets, Eurex has integrated Markit's benchmark dividend forecasts in all proprietary equity pricing models."

Eurex is jointly operated by Deutsche Börse AG and SWX Swiss Exchange, and Eurex's clearing house is responsible for determining settlement prices for all products listed on the Eurex trading platform. The exchange currently provides settlement prices for more than 600 equity-related products daily.

Markit provides benchmark data for the global financial and commodity derivative markets.

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