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Record open interest in MSCI derivatives: 3 questions for Ralf Huesmann

Release date: 13 Dec 2017 | Eurex Exchange

Record open interest in MSCI derivatives: 3 questions for Ralf Huesmann

On 13 December Eurex’ MSCI derivatives segment saw a record Open Interest of +2 million contracts. This makes Eurex the world’s largest marketplace for trading MSCI futures and options in terms of open interest. We talked to Ralf Huesmann, Eurex Product Research and Development, about the driving forces behind the rising demand for MSCI derivatives.

Ralf, Eurex’ MSCI segment just set a new open interest record. Can you share what is behind these figures?

Indeed, we are very happy with the development of our MSCI product suite, which consists of more than 100 different futures and options. What we are currently observing are mostly banks hedging their exposures at Eurex. One of the reasons for them to choose listed derivatives are the margin requirements for over-the-counter (OTC) trades. Over time, I expect to see higher involvement also from end clients.

In 2017, you launched several new products – among them options and futures on the MSCI EAFE index. How are these performing?

We are particularly proud of these new products. Initially, we mainly saw option trades in the price index version, with delta hedges in the futures on the same underlying. However, since this roll, we have seen a massive pick-up in net total return (NTR) futures on EAFE. This is a promising development and underlines Eurex’ strategy to focus in particular on NTR indices.

What is driving people to use Eurex’ MSCI products?

In times of cost pressure all over the financial industry, Eurex is uniquely positioned to provide efficient solutions. Our portfolio margining system, Eurex Clearing Prisma®, creates offsets between a huge number of products, including not only MSCI derivatives but also STOXX®, DAX®, equity, dividend and volatility products. No other exchange active in MSCI derivatives can offer this.

Ralf Huesmann

Eurex Frankfurt AG
Equity and Index Product Research and Development

Mergenthalerallee 61
65760 Eschborn

T +49-69-211-1 54 43

 
 
 

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