Structured product hedgers shun Eurex quanto futures

Maturities too short to hedge autocallable books, say dealers

dollar euro
Contracts touted as providing a hedge for dollar-denominated structured products referencing the Euro Stoxx 50

Eurex's new US dollar-denominated Euro Stoxx 50 futures are too short-dated to be an effective hedge for structured products, according to dealers. But they could rival certain currency-hedged exchange-traded funds (ETFs).

The contracts, listed on March 21, give investors unfunded dollar exposure to the euro-denominated Euro Stoxx 50 index – a situation known as quanto. This means investors don't have to take on the risk of the fluctuating euro/dollar exchange rate when investing in the European

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