The US Commodities and Futures Trading Commission (CFTC) approved six new Eurex equity index futures on ESG indices opening the US market to buy and sell new ESG derivatives to investors.
Available from 1 June, the new ESG indices include:
- STOXX USA 500 ESG-X Futures (FSUS)
- MSCI EAFE ESG Screened Futures (FMSF)
- MSCI Japan ESG Screened Futures (FMSJ)
- MSCI Emerging Markets ESG Screened Futures (FMSM)
- MSCI USA ESG Screened Futures (FMSU)
- MSCI WORLD ESG Screened Futures (FMSW)
Launched in February 2019, Eurex has a growing ESG segment with futures on the STOXX® Europe 600 ESG Exclusions, the EURO STOXX 50® Low Carbon and the STOXX® Europe Climate Impact. In October 2019 the company added first exchange-traded ESG options on a European benchmark to its product range. Since its launch, over 1 million contracts have been traded, amounting to EUR 15 billion with open interest of 39,000 contracts in EUR 500 million.
The growth in ESG trading has generated a demand for diversified index concepts that move away from existing benchmarks and derivatives to versions that reflect the sustainability factors demanded by customers.
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