The international derivatives market Eurex Exchange has launched 31 new single stock dividend futures contracts to enhance its derivatives product suite.
The launch came in two phases, with 17 new futures based on German, French, Dutch and Italian companied created since 26 January, and 14 contracts based on British and Swiss stocks tradable since 2 February.
New contracts are mainly mid-cap firms with a track record of large dividend payments that can be hedged with other listed derivatives contracts, including central clearing.
This latest extension brings the total number of Eurex single stock dividend contracts to 143.
Mehtap Dinc, a member of the Eurex executive board, said: “The launch of these new contracts underlines the continuous interest of market participants in listed hedging instruments in this asset class. Within a few years, we were able to establish a liquid alternative to the existing dividend swap market. Currently, our total monthly volume is around one million dividend derivatives contracts.”
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