Eurex Will Expand Total Return Futures on STOXX Indices

Eurex, an international derivatives exchange, said that it has decided to introduce further Total Return Futures (TRFs) on STOXX indices to meet growing demand. The exchange will launch EURO STOXX Banks Index TRFs and EURO STOXX Select Dividend 30 Index TRFs on March 29, 2021.

The demand for additional STOXX TRFs is driven by the banks' need to hedge their structured products with underlying equities. Eurex's pioneering Total Return Futures synthetically replicate the returns of the underlying index equities without the need to own the shares.

“The shift towards a regulated exchange and centrally cleared environment plays a strategically important role for Eurex. With our innovative Total Return Futures, we have been the first mover in addressing this new business area which supports market participants to mitigate the challenges of UMR, the new margin rules for uncleared transactions.”Randolf Roth, Member of the Executive Board at Eurex, said.