Eurex’s instruments target U.S. investors looking to improve their exposure in European markets.
EURO STOXX 50 Index Dividend Options and EURO STOXX Banks Index Dividend Options from European derivatives exchange Eurex can be directly traded from the U.S., underscoring Eurex’s plans to expand globally, officials say.
U.S. derivatives regulator the Commodity Futures Trading Commission (CFTC) approved Eurex’s efforts to offer its dividend options directly to participants in the U.S., and trading in these instruments began January 6. Eurex officials say that U.S.-based market participants can use the approved instruments to manage their exposure in European equity markets.
“Removing access barriers and making our products available to global investors is a top priority for us,” says Robbert Booij, CEO of Eurex Frankfurt AG, in a prepared statement. The dividend options on “key indices such as the EURO STOXX 50 Index and the EURO STOXX Banks Index” are intended to help U.S. investors better manage their exposure to the European market, Booij says.
Dividends are recognized as an asset class and the market for listed dividend derivatives has grown and been lucrative for Eurex, which holds a globally leading position in terms of contracts traded, officials say. “The latest step in Eurex’s broad offering of dividend derivatives was last year’s launch of Mid-Curve Options on EURO STOXX 50 Index Dividend Futures which are also tradable in the U.S.”
In fact, Eurex reports that its dividend segment reached “another volume record in 2024” via more than “21 million dividend contracts traded in 2024.”
Eurex “increased its total turnover across index dividend futures and options as well as Single Stock Dividend Futures (+ 2.5 percent),” officials say. “Total volume in dividend options even grew 14 percent year-on-year in 2024. Total open interest in the segment at Eurex stood at 8.9 million contracts before December 2024 expiry with a capital value of EUR 63 billion.”
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