MSCI Indexes
MSCI indexes are some of the world’s most widely tracked benchmarks and linked to more than USD 16.3 trillion in AUM. The indexes also serve as the basis for over 1,300 Exchange Traded Funds (ETFs). The massive amount of capital benchmarked against MSCI indexes and the improved tradability of index-based products via ETFs has led to an increased need for futures and options. MSCI derivatives help managers facilitate in and outflows of funds, hedge existing equity exposure and enhance portfolio performance.
Over 190 MSCI derivatives
Eurex is the only exchange offering a comprehensive suite of products consisting of futures and options on regional and country indexes: currently, 160 MSCI futures and 32 MSCI options are available covering Emerging Markets (EM) and Developed Markets (DMs) in different index types (NTR, GTR and price indexes) and different currencies (EUR, USD, GBP and JPY).
With Eurex's MSCI index derivatives offering, investors can now bet on entire regions and individual countries. The complete product range covers developed, emerging and frontier markets and includes several attractive contracts on popular benchmark indices such as futures and options:
- MSCI World Index, covering the universe of developed markets as a whole.
- MSCI Europe Index, the leading benchmark for European equity funds.
- All major developed markets in all regions are available via individual futures, e.g. MSCI Japan Index, Australia, USA, Canada, UK, France, ...
Our regional MSCI Emerging Markets Index derivatives give our participants access not only to leading regional benchmarks (Broad EM, EM Asia, EMEA and EM LatAm), but also to individual emerging markets in Asia (such as China, India, Taiwan and Thailand), Eastern Europe (such as Poland and the Czech Republic), Africa (such as South Africa and Egypt) or Latin America (such as Mexico and Chile).
MSCI derivatives: Notional Volume and Open Interest in bn EUR
MSCI Futures
MSCI Options
Growth Drivers
- Level playing field
Clients can get competitive prices from dealers on products like MSCI EM (RBE) & EAFE (FFP) futures & benefit from increased orderbook volumes in top products such as MSCI World - Ease of trading
Eurex block trade rules are easier, and client can trade against index close easily with dealer - Higher capital efficiency
Margins are offset against other Eurex products (SX5E, MSCI, Dividends…)
- Meaningful offset if clients trade other flagship Eurex products
- Important if they trade other MSCI single country futures like MSCI Saudi Arabia or MSCI Japan etc.
- In July 2021 Eurex reduced MSCI margins further on large/directional positions by introducing Hedging Auctions - Buy-side flow indicates wider adoption
Buy-side now represents over 24% of Eurex MSCI derivatives flow - Wide offering makes it easier to find better fit
- NTR Versions: Eurex offers NTR versions on EM (ZTS) and EAFE (FFA) and most indexes, rather than just price variations
- Options: Eurex offers MSCI Options on the same platform. Margins are offset between options and futures
- ESG indexes: Eurex offers Screened and Enhanced Focus methodologies on the benchmark MSCI indexes
- Sector, Factor and Thematic Indexes: Eurex offers Sectors on EM & World indexes; Factor indexes on regions and country indexes and thematic indexes - Cheaper
Eurex fees are 75% cheaper than competitors - Extended trading hours covering all time zones
Asian hours trading has been crucial to compete & price in Emerging Markets
Key Benefits
- Liquid order books for outrights and rolls
- The broadest offering: 162 MSCI futures and 29 MSCI options
- Extended trading hours covering three time zones with full clearing and risk management capabilities
- No position limits
- No threshold limits on blocks
- Portfolio-margining offsets available against major equity derivatives
Products
Clearing
Portfolio-based margining methodology (PRISMA) offers the highest levels of cross-margin offsets across equity derivatives
As Eurex is the #1 derivatives exchange in Europe, providing investors access to the broadest spectrum of equity index derivatives, our portfolio-based margining methodology (PRISMA) offers the highest cross-margin levels offsets across equity derivatives. To fully benefit from cross margining efficiencies, take a look at our Eurex Clearing Prisma brochure. For highly accurate what-if scenarios and incremental risk calculations, use our online margin calculators.
Key MSCI Asian underlying Products
Switch to the Global Home of MSCI Derivatives
With the SGX delisting of MSCI derivatives, Eurex sees an uptick in interest in its MSCI offering. Eurex has the most comprehensive suite of MSCI derivatives across all time zones, including alternatives directly available. Find out below which Eurex contracts are equivalent to the contracts to be delisted.
