USFs offer a cheap and efficient alternative to direct cash investing. By allowing investors to gain leveraged exposure to selected stocks for a fraction of the price of direct investment, they are ideal for hedging purposes, and also for portfolio structuring when direct transactions might not be possible for cost or tax reasons. USFs are currently available on over fifty percent of the DAX, including sixteen top German stocks. These include Deutsche Telekom AG, Deutsche Bank AG, Daimler Chrysler AG, Siemens AG, Volkswagen AG and Commerzbank AG.
Euronext.liffe is working with ten German brokers, as well as key trading centres in Germany, to help establish the new products. Brokers include: actior AG, ak brokerage, CK Trading Bank GmbH, Conservative Concept Portfolio Management GmbH, Interactive Brokers (UK) Ltd., portfolio concept GmbH, Refco Overseas Ltd. Germany, Sucden (UK) Ltd, Trading-house.net AG and Varengold AG.
Euronext.liffe has also launched two online initiatives to help German retail investors benefit from USFs. A new retail website provides product and trading information, details of German brokers, trading tools and simulated trading at www.liffeinvestor.com/de. Here private investors will find a new Learning Centre which provides education modules for beginners and experienced investors, free Universal Stock Futures real-time prices and broker trading services.
Fraser Cowie, Director of Marketing at Euronext.liffe said: "We are delighted to be the first exchange to bring futures contracts on individual stocks to the German retail market with our Universal Stock Futures offer. The value for money and flexibility these contracts offer will open up many new trading opportunities for the many sophisticated retail investors in Germany. By supporting the product launch with online information services, and with the backing of ten brokers, we hope investors will quickly be able to profit from investment opportunities based on blue chip stocks across the World."
