Eurex Collaborates with FTSE Russell to Expand TRF Segment

Eurex, an international derivatives exchange and a member of the Deutsche Börse Group, announced today that it has partnered with FTSE Russell to expand its pioneering Total Return Futures (TRF) segment through a new contract on the FTSE 100 Index.

According to the official announcement, the launch of the contract is scheduled for 29 March. The exchange aims to meet the growing demand of several clients for a TRF contract covering the equity market in the UK.

Eurex is also planning to introduce dividend futures along with regular futures and options on the FTSE 100 Index. The exchange highlighted that the market participants can take advantage of lower margins from the outset due to Eurex’s portfolio-based margining approach.

Commenting on the recent announcement, Michael Peters, Chief Executive Officer of Eurex, said: “Increased margin pressure, capital requirements and demand for electronic execution are moving OTC segments into futurized listed derivatives. Our innovative TRF offering provides great benefits to address these topics. We are pleased to partner with FTSE Russell to further expand this novel area in particular.”

TRF Contract

Eurex mentioned in the official announcement that the demand for risk management products is growing significantly and the exchange is committed to providing support to the clients through innovative solutions. “The new TRF contract complements Eurex’s existing TRF suite, which includes further index TRFs, individual Equity TRFs, and equity Basket TRFs. Eurex launched the TRF segment in 2016 with the listing of the first Total Return Futures on the EURO STOXX 50 Index. Equity Total Return Futures on 255 stocks and the new basket trade functionality followed in October 2019. Since its launch, Eurex has managed to migrate over 50 percent of the EURO STOXX 50 OTC market to its product. Current open interest stands at 1.5 million contracts,” Eurex mentioned in the official announcement.

Eurex recently released its financial numbers for the last year. The exchange reported growth in OTC Clearing but a major slump in European equity derivatives contracts.