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Today EDX London, London Stock Exchange Group's (LSEG) international derivatives market has gone live with dividend futures on six Russian International Order Book (IOB) underlyings. This is the first time Russian dividend futures will be traded on exchange.
Nicolas Bertrand, Head of Equities and Derivatives for London Stock Exchange Group, said:
"The launch of this new service on EDX London demonstrates our innovative approach to product development, giving investors the ability to trade or hedge dividend exposure to Russia on exchange for the first time."
"London has long been the natural home for Russian companies looking to gain access to international capital. This, coupled with the world's most liquid order book for GDRs, and the broad range of Russian derivatives products we now offer, reinforces London's credentials as a global gateway for trading in Russian instruments and markets."
EDX London has worked closely with its members to design an innovative product that is the first of its kind globally. Features include:- An objective, market-recommended solution to calculate daily settlement prices using market-leading dividend forecast data supplied by global financial information services company, Markit;
- New processing that prevents any unexpected profit or loss as a result of unusual dividend payment schedules;
- An intelligent, simple and competitive pricing model that levies fees proportionate with contract exposure.
- Flexible primary market for new and existing Russian listings and tradable instruments;
- The International Order Book, the world's most liquid order book for Depositary Receipts, offers electronic trading and central counterparty clearing;
- Russian IOB single stock options and futures;
- FTSE Russia IOB Index options and futures;
- Russian IOB stock dividend futures.
Other product developments for the Group in derivatives include the launch of 13 new pan-European stock futures on Borsa Italiana's derivatives market, IDEM, introduced on 20 December 2010.
