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Technology & Data

Eurex Broadens ESG Suite with SRI Futures

Frankfurt-based derivatives exchange Eurex is launching a range of futures contracts based on socially responsible investing (SRI) indices, calculated by STOXX and MSCI. The new derivatives contracts will use the STOXX Europe 600 SRI Index as well as MSCI’s SRI index suite, covering Europe, USA, World, and emerging markets. Eurex said the launch of the new contracts was a response to growing demand for exchange-traded derivatives with more advanced ESG methodologies. The SRI indices underlying Eurex’s new futures contacts provide broad exclusions combined with a best-in-class selection approach. The launch will be supported by a liquidity provider scheme, offering regular rebates and revenue sharing elements. More than 500 funds already track SRI indices, with the top ten SRI-focused exchange-traded funds account for more than US$45 billion in assets under management. “Our offering will certainly appeal to new user groups that have stricter ESG mandates and need to invest responsibly, such as asset managers who invest on behalf of endowment funds or foundations,” said Randolf Roth, Member of the Eurex executive board. Eurex’s product suite already covers sustainable versions of established benchmarks such as STOXX Europe 600, Euro STOXX 50, DAX, MSCI World and MSCI Emerging Markets. Underlying methodologies range from negative ESG screening or exclusion methodology to integration and best-in-class approaches. The exchange launched its first derivatives on ESG indices in February 2019, with total volume reaching nearly 11 million contracts by the end of 2023. Average daily trading volume in 2023 stood at more than 12,000 contracts, with annual trading volume about 5% above 2022 levels.

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