International derivatives exchange Eurex has launched two additional futures contracts on underlying UK stocks, in addition to the 17 UK single stock futures already announced.
International derivatives exchange Eurex has launched two additional futures contracts on underlying UK stocks, in addition to the 17 UK single stock futures already announced. The two additional contracts are based on Lonmin and Man Group stocks.
Eurex has announced a six-month fee holiday until the end of November, waiving all transaction fees for all 19 single stock futures on UK stocks. The contracts will be quoted in pence, with a size of 1,000 shares and a minimum price change of 0.01 pence, and settled in sterling. Contract specifications are otherwise in line with those of existing single stock futures.
Last month Eurex announced it would expand its product portfolio by introducing 17 single stock futures on Royal Dutch Shell and the 16 sterling-denominated components of the Dow Jones Stoxx 50 index, listing products denominated in sterling for the first time. The futures cover shares of the largest UK companies, including Barclays, BP, HSBC, Lloyds TSB and Vodafone.
Following the launch of the UK products, Eurex will offers single stock futures on more than 400 equities from all major European markets. Single stock futures are the fastest growing product segment on Eurex, with more than 5.2 million contracts were traded in March, an increase of 114 percent compared with the same month of 2006.
‘The new single stock futures further expand our product range in terms of currencies and countries,’ says Eurex board member Peter Reitz. ‘Cross-margining with our other products will allow customers to trade more efficiently.’
The extension into a new currency is possible through the designation of Eurex Clearing as an Overseas Clearing House by the UK regulator, the Financial Services Authority. The product currency, trading and clearing fees, premiums and variation margin will be in sterling.
