At present, Eurex trades 80 single stock futures based on all the stocks listed in the German DAX blue chip index and the pan-European Dow Jones Euro STOXX 50 index as well as selected SMI stocks. In extending its range, Eurex is responding to the growing demand for single stock futures.
Single stock futures trading volumes on Eurex have climbed sharply in recent weeks. In March 2006, over 1.1 million contracts were traded on Eurex, the highest volume since the first single stock futures were launched in October 2005. Turnover in April will substantially exceed this: 1.26 million contracts were traded on 12 April alone. To date, a total of 4.5 million single stock future contracts have been traded in 2006. Open interest currently stands at 2.9 million contracts. Eurex's market share in single stock futures, as compared to its largest competitor, is now 63 percent.
Eurex single stock futures may be used for many different purposes. Private investors, for instance, can for the first time short sell individual equities or build up synthetic cash market positions with relatively little capital. Moreover, investors profit from efficient settlement processes and low capital commitment thanks to cross-margining.
