Eurex, the international derivatives exchange, will expand its product portfolio and introduce 17 single stock futures (SSF) - on the Royal Dutch Shell shares and on the 16 sterling denominated components of the Dow Jones STOXX 50 index.
The contracts will be available as of 21 May 2007. With this step, Eurex lists for the first time products denominated in British Pounds (GBP). The new futures cover shares of the largest UK companies, among others Barclays, BP, HSBC, Lloyds TSB and Vodafone.
With these new products, Eurex offers single stock futures on more than 400 equities from all major European countries. Being the fastest growing product segment on Eurex, in the first three months of 2007 more than 5.2 million contracts were traded - an increase of 114 percent compared to Q1 2006.
'The new single stock futures further expand our product range in terms of currencies and countries', says Peter Reitz, board member of Eurex. 'The cross-margining with our other products will allow customers to trade more efficiently.' The extension into a new currency is possible through the recognition of Eurex Clearing as an 'Overseas Clearing House' by the British regulator FSA. The product currency, the trading and clearing fees, the premiums as well as the variation margin will be in GBP.
The contract specifications of the new SSF are similar to the existing products. Contract size is 1,000 shares; and the UK single stock futures will be cash settled in GBP. To promote the new products, there will be a fee holiday until the end of November 2007.