Press

New derivatives on the sectors Automobiles, Energy, Insurance and Healthcare

Ferscha: Tools for fine-tuned risk management Trading in existing STOXX sector index products shows strong growth.

Eurex, the international derivatives market, is further expanding its portfolio of index derivatives with new sector products. As of April 22, Eurex is introducing futures and options on the Automobiles, Energy and Insurance sectors of the Euro STOXX index; it is thus expanding the existing line of products from the current total of eight futures and options on the sectors Banks, Healthcare, Technology and Telecommunications with six further sector index products. In addition, as of the same launch date, the derivatives market is introducing options on the STOXX sector index Healthcare. Up to now, futures have been tradable on the Banks, Healthcare, Technology and Telecommunications sectors of the pan-European index.

Eurex indicated that the high level of demand from market participants for sector index products is based on the increasing implementation of trading strategies that are oriented to individual sectors. A growing number of institutional investors have come to appreciate the advantages of sector derivatives, such as the possibilities for broader diversification, it said. Moreover, the number of sector products in the cash market is rising, such as Exchange Traded Funds or index certificates, and active OTC trading is underscoring this trend.

Eurex CEO Rudolf Ferscha said: "The sector index products have a great deal of potential. With this product innovation, we are offering Eurex participants tools for fine-tuned risk management and are thus providing for highest added value to our customers. Eurex is one of the world's most successful derivatives exchanges in the index derivatives segment, and is showing the highest growth rates."

Eurex has been very successful in the trading of futures and options on the sector indices of the DJ Euro STOXX SM this year: In January and February 2002, Eurex traded some 200,000 contracts per month, which is about 140 percent higher than in December 2001; compared with November 2001, the monthly volume has even quadrupled.

On March 19, 2001, Eurex introduced the first eight futures contracts on sector indices of the Dow Jones STOXX 600 SM and Dow Jones Euro STOXX SM, which respectively cover the euro zone and Europe as a whole. On September 24, 2001, these instruments were joined by four new option contracts on the sector indices Banks, Technology, Telecommunications and Healthcare of the Dow Jones Euro STOXX SM.