Global derivatives exchange, Eurex, is set to expand its ESG offering in the first quarter of next year with the launch of new futures using MSCI ESG Screened Indices.
The sustainable versions of regional and global benchmarks are set to launch on March 2, 2020. The products will use MSCI’s ESG screen index suite covering the US, Europe, emerging markets, Australasia, the Far East and Japan.
MSCI said each index represents the performance of an investment strategy that excludes companies involved in ‘controversial’ business activities such as weapons, nuclear, civilian firearms, tobacco, thermal coal and oil sands extractions, that are included in the parent indices.
Eurex’s expansion follows an extension of the strategic relationship between the company and MSCI that includes new licences for Eurex’s listed ESG equity index derivatives.
Michael Peters, Member of the Eurex Executive Board: “Driven by the growth of ESG assets, the strong demand from both retail and institutional investors, and the overall dynamics of the market, we want to give our clients maximum flexibility when it comes to selecting their ESG investment approaches.”
George Harrington, Global Head of Futures and Options Licensing at MSCI: “We are excited to continue to build our strategic relationship with Eurex in relation to this diverse and innovative range of ESG indexes .”
The new product launches mark the next step in Eurex’s ESG strategy. The company started in February 2019 with the introduction of the first European ESG derivatives product suite, a segment that has traded nearly half a million contracts so far this year.