Eurex to launch suite of derivatives using MSCI Dividend Point Indexes

Release date: 13 Mar 2019 | Eurex

Eurex to launch suite of derivatives using MSCI Dividend Point Indexes

Eurex, one of the largest derivatives exchanges, has selected MSCI Inc. (NYSE: MSCI), a leading provider of indexes, critical decision support tools and services, to provide the indexes for a new range of dividend futures contracts.

Based on three new MSCI Dividend Point Indexes – the MSCI EM Dividend Point Index, the MSCI EAFE Dividend Point Index and the MSCI World Dividend Point Index –, Eurex will launch derivatives that enable market participants to hedge their dividend exposure around the globe. As a first step, Eurex will introduce futures contracts in the second quarter of 2019.

The launch of these new products is another important milestone in a very successful working relationship between Eurex and MSCI. Eurex’s MSCI product suite is one of the exchange’s strategic pillars with an open interest of 2.3 million contracts (end of February 2019).

“Eurex opens a new chapter in dividend trading by going global,” says Michael Peters, Member of the Eurex Board. “We are very pleased to utilize MSCI’s capabilities as an index provider to further serve our clients.”

George Harrington, Global Head of Futures and Options Licensing at MSCI, comments, “From our conversations with the global investment community we know there is increasing demand from investors and traders alike to segregate the dividend cash flow of the underlying MSCI Index to have a simple way of calculating and benchmarking dividend income. We are pleased to continue working with Eurex as they expand their offering.”

The new products complement Eurex’s existing suite of dividend derivatives and are a major new milestone to build on the exchange’s strong global market share in the segment.

About MSCI Inc.

MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visitt www.msci.com

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