Concern over sluggish adoption of ESG futures
While the number of products is on the rise, very few have underlying liquidity
Although the number of futures based on environmental, social and governance (ESG) indexes is increasing, market participants have raised concerns about their pace of adoption as volumes remain a drop in the ocean compared to their more traditional parent indexes.
Only 22 of the estimated 45 ESG indexes that exist within the equity futures market see any open interest, according to Joel Stainton, head of execution for futures and options and over-the-counter clearing for Europe, the Middle East
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