Eurex to launch UK equity futures

Frankfurt-based derivatives exchange Eurex plans to list 17 sterling-denominated single-stock futures in May.

The contracts, which are the first sterling-denominated products to be listed on Eurex, will cover all the sterling components of the Dow Jones Stoxx 50 Index. This includes Royal Dutch Shell, and large UK-based companies such as Barclays, HSBC, BP and Vodafone. The cash-settled contracts will have an underlying of 1,000 shares each, and will list on May 21.

Eurex’s move has been made possible by the recognition of its clearing arm as an 'overseas clearing house' by the UK Financial Services Authority. Single-stock futures are already offered by Eurex on companies in all other main European markets. Adding the 17 UK names means it now offers more than 400 different futures on various European companies. Peter Reitz, a member of the board at the exchange, said customers would benefit from cross-margining with its other products.

UK single-stock futures are already offered by London-based Euronext.liffe, whose parent company Euronext completed its merger with NYSE Group today (April 4). Eurex's parent firm Deutsche Börse had rivalled NYSE's bid during talks with Euronext, which broke down last November.