Six new Eurex equity index futures on ESG indices have received approval from the U.S. Commodities Futures Trading Commission (CFTC). This regulatory permission opens the U.S. market – both buy side and sell side – allowing the new ESG derivatives to be utilized by U.S.-based investors that apply ESG criteria to their portfolios.
With effect from 1 June 2020, just in time for the roll month June, the following products are tradable in the U.S.:
- 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)
The new products are part of Eurex’s growing ESG segment, launched in February 2019, with futures on the STOXX® Europe 600 ESG Exclusions, the EURO STOXX 50® Low Carbon and the STOXX® Europe Climate Impact. In October 2019, Eurex extended its pioneering role in ESG derivatives by adding the first exchange-traded ESG options on a European benchmark to its product range.
Since launch, more than 1 million contracts have been traded with a nominal value of approx. EUR 15 billion. The open interest is approx. 39,000 contracts, which corresponds to a nominal value of over EUR 500 million.
The growth of ESG investing has created demand for sophisticated and diversified index concepts that move away from existing benchmarks and derivatives to versions that reflect the sustainability factors demanded by customers. Leading this trend, Eurex provides the broadest offering in listed ESG derivatives.
An approval from CFTC is granted if the offered products meet certain criteria, pre-defined by the U.S. regulator. According to Eurex Deutschland's registration as a "Foreign Board of Trade", the MSCI and STOXX futures can be offered or sold to persons in the US via Eurex terminals with direct access in the U.S.