Eurex launches new single stock dividend futures contracts

Eurex Exchange has enhanced its dividend derivatives product suite with the launch of 31 new single stock dividend futures in two phases.

Since 26 January, 17 new single stock dividend futures based on German, French, Dutch and Italian companies have been available. Additionally, 14 new contracts based on British and Swiss stocks have been tradable since 2 February. The majority of the companies are mid-cap firms operating in 11 countries with a track record of sizeable dividend payments, which can be hedged with listed derivatives contracts including central clearing. The latest extension increases the total number of single stock dividend contracts at Eurex to 143.

“The launch of these new contracts underlines the continuous interest of market participants in listed hedging instruments in this asset class. Within a few years, we were able to establish a liquid alternative to the existing dividend swap market. Currently, our total monthly volume is around one million dividend derivatives contracts,” says Mehtap Dinc, member of the Eurex Executive Board.