Many ESG products face liquidity struggle, say exchanges
Fragmentation, design and definition challenges mean many exchange-traded products will remain illiquid
While there has been a proliferation of environmental, social and governance (ESG) exchange-traded products launched in recent years, exchanges say fragmentation, as well as difficulties around design and definitions, mean many of these contracts will struggle to build enough liquidity to challenge the incumbents.
Speaking on a panel at the Futures Industry Association’s IDX conference in London on September 28, Owain Johnson, global head of research and product development at CME Group, said
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