Digital Assets Report

Newsletter

Like this article?

Sign up to our free newsletter

FTSE 100 Dividend Index futures reach one million milestone

Related Topics

NYSE Liffe’s FTSE 100 Dividend Index futures contract has traded its millionth contract. 

The contract, which was launched in May last year, is available both through Liffe Connect and Bclear, the exchange’s trade administration and clearing service.

NYSE Liffe launched a similar contract based on the CAC 40 dividend index late last year.

Both indices represent the cumulative value of ordinary cash dividends declared by the individual constituents each index over a one-year period, calculated in terms of index points.

Jonathan Seymour, director of equity derivatives and OTC services at NYSE Liffe, says: “Predicting companies’ dividends became harder from the onset of the financial crisis 18 months ago. We launched the FTSE 100 dividend index future to provide our customers with a way to take a position on the trend of dividend policy and for other users of the FTSE equity derivatives market, notably options traders, to protect themselves against the dividend risk they run in options portfolios.” 

Adrian Valenzuela, managing director global co-head of equities distribution at J.P. Morgan, adds: "We are delighted to support NYSE Liffe’s futures contracts on the FTSE 100 Dividend Index. This product enables clients to manage dividend risk in an effective and efficient manner. We look forward to working with NYSE Liffe on an expanded range of contracts that respond to the strong investor demand for dividend index futures."

Like this article? Sign up to our free newsletter

Most Popular

Further Reading

Featured