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Eurex unlocks new hedging tools

First Published 4th July 2017

Eurex offers exchange traded market for the corporate bond segment in Europe.

Mehtap Dinc, Eurex

Mehtap Dinc, Eurex

Following the launch of futures and options on the MSCI EAFE index that represents the developed markets of Europe, Australasia and the Far East, Eurex now offers futures and options on all major MSCI indexes. With the introduction of futures on the EURO STOXX 50 Corporate Bond Index, Eurex is the first mover offering an exchange traded market for the corporate bond segment in Europe.

The new products addresses the needs of the buy side whose investment behaviour is undergoing structural changes. Passive products like Exchange Traded Funds (ETF) are gaining momentum. This affects the derivatives markets because it creates new hedging needs for asset managers.

"The European market for corporate bonds plays a key role in the financial ecosystem. It has grown consistently after the financial crisis, both in terms of market participants and overall assets under management", said Mehtap Dinc, Member of the Eurex Board and Head of Derivatives Product Development at Deutsche Börse.

The new environment creates demand for innovative hedging solutions in the form of Exchange Traded Derivatives. "The same is true for MSCI products. With more providers of MSCI related vehicles and growing competition on pricing these, an increased need for cost-effective and efficient hedging tools in the form of futures and options arises", Dinc added.