Eurex will list three options on 17 May based on the Deutsche Bank ETFs db x-trackers MSCI Emerging Markets TRN, MSCI World TRN and MSCI Europe TRN.
Additional ETF options are expected to be listed at Eurex later this year.
“With the re-launch of our ETF derivatives segment, we support the expansion of the ETF market by offering custom-made hedging opportunities for investors and ETF issuers,” says Peter Reitz (pictured), member of the Eurex executive board. “The European ETF market has grown tremendously in every category over the last ten years, ETF derivatives will contribute to the growth of this market.”
“Options on selected ETFs are a further demonstration of the growth of this asset class. ETF investors will now be able to reduce the costs of trading and hedging against benchmark indices through MSCI option products that are easy to trade and risk manage. This has value for hedging and overlay management purposes, as well as for investors looking for upside participation,” adds Thomas Strenge, European head of synthetic equity sales, Deutsche Bank.
The new ETF options will be traded in euro, physically settled (European-style) and have maturities of up to 24 months. The contract size will be 100 units. Deutsche Bank will act as market maker to support liquidity in the order book.
The three underlying Deutsche Bank ETFs are listed at XTF, Deutsche Börse’s ETF trading segment.