STOXX Europe 600 ecosystem grows with new Total Return Futures
ZUG, Switzerland (September 30, 2024) — The STOXX Europe 600 has become the underlying index for Total Return Futures (TRF), launched today on the derivatives exchange Eurex. The broad pan-European benchmark complements the existing TRF-segment, with products currently tracking the EURO STOXX 50®, EURO STOXX® Banks, and EURO STOXX® Select Dividend 30 indices. At the […]
ZUG, Switzerland (September 30, 2024) — The STOXX Europe 600 has become the underlying index for Total Return Futures (TRF), launched today on the derivatives exchange Eurex. The broad pan-European benchmark complements the existing TRF-segment, with products currently tracking the EURO STOXX 50®, EURO STOXX® Banks, and EURO STOXX® Select Dividend 30 indices.
At the same time, the new TRFs expand the well-established and liquid ecosystem of the STOXX Europe 600, with tracked products including ETFs, structured products and derivatives.
“Over the past few years, the STOXX Europe 600 index has become a top choice for asset managers and issuers seeking to create broadly diversified, liquid, and transparent investment products for their clients,” says Axel Lomholt, General Manager at STOXX Ltd. “The new TRFs will further support market participants in managing and hedging portfolios, and provide additional capital and balance-sheet benefits in a standardized, collateral-efficient and centrally-cleared manner. We are excited to keep growing the opportunities in the derivatives market in collaboration with Eurex.”
With a fixed number of components, the STOXX Europe 600 provides extensive coverage with a diversified allocation across 17 countries and 11 industries within Europe’s developed economies, representing nearly 90% of that investable market.
Stuart Heath, Director, Equity & Index Product Design at Eurex: “STOXX Europe 600 is the de facto broadest representation of the European market and its uptake as a benchmark is reflected in the growth of derivatives tracking it at Eurex. The TRFs add a precision tool to market participants to mitigate directional and financing risks in this index and also in their own products, such as custom baskets, that are based upon the constituents of this index ”
TRFs aim to replicate the returns of traditional bilaterally negotiated equity or equity index-based swaps. However, compared to a bilaterally negotiated swap, central clearing enables portfolio margining, simplifies settlement and mitigates counterparty risk.
The STOXX Europe 600 is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800. With a fixed number of 600 components, the benchmark represents large-, mid- and small-capitalization companies across the 17 countries, the broadest coverage among flagship developed European benchmarks in the industry in terms of number and size of components.
Media contact:
Andreas v. Brevern
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