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Equity index derivatives: Planned launch of futures on STOXX USA 500 ESG-X and MSCI USA, World, EM, EAFE and Japan ESG Screened indexes – Preliminary launch details

Release date: 04 Dec 2019 | Eurex Exchange

119/2019 Equity index derivatives: Planned launch of futures on STOXX USA 500 ESG-X and MSCI USA, World, EM, EAFE and Japan ESG Screened indexes – Preliminary launch details

Eurex Circular 119/19

1.   Introduction

Eurex Deutschland intends to launch further Environmental Social Governance (ESG) related equity index derivatives on 10 February 2020 and on 2 March 2020.

This circular contains preliminary information on the proposed changes and drafts of the updated sections of the relevant Rules and Regulations of Eurex Deutschland. It provides details about the planned launch regarding the products in scope and the production launch schedule.

Please note that the attached drafts of the updated sections of the relevant Rules and Regulations of Eurex Deutschland are only preliminary changes and that the actual product launches still depend on a resolution by the Management Board of Eurex Deutschland.

Production start:

10 February 2020: Futures contract on the STOXX USA 500 ESG-X index
2 March 2020: Futures contracts on MSCI ESG Screened indexes (covering USA, World, EM, EAFE and Japan)

2.   Participation requirements

ESG equity index futures will be available for all Members and traders that are set up to trade futures products.

3.   Details of the initiative

A. Details of the new products

ESG equity index futures are based on indices that incorporate Environmental Social Governance criteria into the index methodology. With this launch Eurex extends its ESG segment by adding further regions (USA, World, EM, EAFE, Japan) and index methodologies to its existing offering established in February 2019.

For the further ESG product offering, standardised contract specifications will apply. Please see the tables in Attachment 1 and Attachment 2 for an overview of the planned ESG futures.

B. Production schedule

ESG equity index futures in scope are intended to start trading in production on 10 February 2020 and on 2 March 2020.

C. Liquidity Provider scheme

The Management Board of Eurex Deutschland and the Executive Board of Eurex Frankfurt AG plan to offer a Liquidity Provider scheme for the new ESG equity index futures effective as of the respective launch date. Details regarding the Building Block requirements for ESG futures and the incentives Liquidity Providers shall receive upon fulfillment of these requirements will be published in a separate Eurex circular at a later date.

Attachments:

  • 1 – Overview of STOXX USA 500 ESG-X futures (DRAFT)
  • 2 – Overview of MSCI ESG Screened futures (DRAFT)

Further information

Recipients:All Trading Participants of Eurex Deutschland and Vendors
Target groups:Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination
Contact:Product R&D Equity and Index, Christine Heyde, T +49-69-211-1 56 98, christine.heyde@eurexchange.com
Web: www.eurexchange.com
Authorized by:Michael Peters
 

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