Eurex, the leading European derivatives exchange and part of the Deutsche Börse Group, announced today the launch of single-stock futures (SSFs) and single-stock dividend futures (SSDFs) on Japanese equities. Japan is the last major developed market not yet covered by Eurex’s equity financing product suite. With this launch, Eurex expands its equity derivatives offering into the Asia Pacific region for the first time.
Building on a proven approach
The launch builds on Eurex’s track record of bringing bilateral OTC structures into a centrally cleared product executed on a regulated market. Eurex has successfully applied this cleared futures approach across asset classes from Total Return Futures (TRFs) and equity-based TRFs on European underlyings to MSCI derivatives, credit and FX futures. Japanese SSFs and SSDFs extend this proven model to Asia’s equity financing market for the first time.
Central clearing for Japanese equity financing
Japan is one of Asia’s largest equity financing markets, with substantial bilateral OTC swap activity across both onshore JPY and offshore USD transactions. No other exchange currently offers centrally cleared SSFs or SSDFs on Japanese stocks. Eurex closes this gap with an alternative which is centrally cleared and executed on a regulated market: together, SSFs and SSDFs replicate the full economic return of an equity financing transaction without the complexity of a bilateral more complex OTC transaction.
