International derivatives exchange Eurex will expand its product range in the area of equity index derivatives. Futures and options on the DJ Euro STOXX Select Dividend30, DJ STOXX Large 200 and DJ STOXX Small 200 indices will be available from 23 July 2007. In offering the three additional index products, Eurex continues to expand its STOXX product range. Currently, 40 futures and 44 options are listed on STOXX indices.
The futures and options on the DJ STOXX Large 200 and DJ STOXX Small 200 supplement the futures and options available on the DJ STOXX® Mid 200 since 2005, thus covering the complete range of STOXX size indices. In the past months, the volume of options traded on the Dow Jones STOXX Mid 200 Index has far exceeded the volume of all other pan-European size index options. The two new index options will enable investors to structure their portfolios even more precisely based on size (large, mid and small caps).
The DJ Euro STOXX Select Dividend30 index comprises the 30 equities with the best dividend performance in the euro zone. The futures and options on this index are the first in Europe and aim in particular at investors who pursue dividend-based investment strategies.
Peter Reitz, member of the Eurex board, says: “The popularity of dividend strategies among investors has grown substantially, particularly because shares with higher dividend yields have developed significantly better than shares with lower dividend yields in recent years.” The overall interest in the DJ Euro STOXX Select Dividend30 index is underscored by the fact that traded volumes in ETFs on the dividend index are up strongly. Reitz adds: “The corresponding ETFs already rank among the top ten ETFs in terms of assets under management in Europe.”
The new futures and options are settled in cash in the same way as existing equity index derivatives. From the beginning, market makers will ensure liquidity in all products. Eurex is offering a fee holiday for the new futures and options until the end of 2007.
