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Eurex introduces futures on ESG Fixed Income Indexes in cooperation with Bloomberg

Erschienen am:
29.06.2021
| Eurex

Eurex introduces futures on ESG Fixed Income Indexes in cooperation with Bloomberg

- Futures to be launched on both the Euro Corporate SRI Index and the Global Green Bond Index
- New futures offer a range of possible use cases including liquidity and cash management, portfolio overlay strategies and hedging

Eurex has announced that on 27 September it will launch futures on the Bloomberg Barclays MSCI Global Green Bond and Euro Corporate SRI indexes. This launch further underlines Eurex’s position as the global venue for EUR fixed income derivatives and its pioneering stance in the growing ESG segment.

The new derivatives will allow asset managers and other market participants to further adapt their investment and trading strategies to comply with ESG mandates and optimally manage the risk of ESG-driven portfolios. They also offer the possibility of generating additional alpha via synthetic exposure to ESG fixed income indexes. These new opportunities come alongside the benefits of price transparency and regulatory compliance via the Central Limit Order Book and CCP clearing.

Futures on the Bloomberg Barclays MSCI Euro Corporate SRI Index will give investors a valuable investment vehicle to track the Euro investment grade corporate bond market, applying certain ESG criteria. Futures on the Bloomberg Barclays MSCI Global Green Bond Index aim to provide a liquid and easily accessible solution for market participants willing to take exposure to the global green bond market.

Lee Bartholomew, Head of Fixed Income ETD Product Design at Eurex: “As well as providing a range of extra benefits to our clients – in terms of broadening the scope of their hedging and trading opportunities – these new futures show our continued leadership in several areas. First, in terms of our listed FI derivatives offering, as well as in our efforts to assist clients with their ESG investment mandates. We are very proud to be pioneers in this vitally important segment and will look to build a portfolio of products to aid clients to access liquidity.”

"By expanding our relationship with Eurex to introduce the first futures products associated with ESG in the fixed income space, we are proud to support the industry's growing focus on socially responsible investing," said Umesh Gajria, Global Head of Index-linked Products at Bloomberg. "Our multi-asset class index suite provides myriad opportunities for product innovation, such as these new derivatives."

The ESG fixed income landscape currently comprises around USD 53 trillion in outstanding bonds globally and has grown by over USD 10 trillion in 2020 alone. Eurex will continue to build out its offering in this segment to complement its already leading position in terms of listed ESG derivative in the equity space.

About Eurex

Eurex stands for the leading European derivatives exchange and – with Eurex Clearing – one of the leading central counterparties globally. Being architects of trusted markets characterized by market liquidity, efficiency, and integrity, we provide our customers with innovative solutions to seamlessly manage risk.

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