Eurex to enter US equity index options market

Derivatives exchange Eurex has licensed a number of US equity indexes from index company Russell in its latest move into the North American derivatives market.

Eurex said it has licensed a range of indexes, including the US large cap Russell 1000, the US small cap Russell 2000 and the broad-based Russell 3000. Both Frankfurt-based Eurex and Chicago-based Eurex US – which was launched last month – are licensed under the agreement. Eurex said it anticipates initial listings to take place on Eurex US.

“This agreement marks the beginning of the expansion of the Eurex global liquidity network into US equity index products. Combining Russell’s benchmark indexesand Eurex’s global liquidity network creates low-cost trading and arbitrage opportunities on our global liquidity network,” said Rudolf Ferscha, Eurex’s chief executive.

He added: “We are in the unique position to offer our customers leading European and US equity index derivatives on the same platform. Investors will benefit from the cheapest way to equitise cash positions.”

In the US, equity index options contracts trade under exclusive licence agreements. The three biggest index options classes, the Standard & Poor’s (S&P) 500, the S&P 100 and the Dow Jones Industrial Average (DJX), currently reside at the Chicago Board Options Exchange.