ZUG, Switzerland (September 30, 2024)— The STOXX Europe 600 has become the underlying index for Total Return Futures (TRF), launched today on the derivatives exchange Eurex. The broad pan-European benchmark complements the existing TRF-segment, with products currently tracking the EURO STOXX 50®, EURO STOXX® Banks, and EURO STOXX® Select Dividend 30 indices.
At the same time, the new TRFs expand the well-established and liquid ecosystem of the STOXX Europe 600, with tracked products including ETFs, structured products and derivatives.
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“Over the past few years, the STOXX Europe 600 index has become a top choice for asset managers and issuers seeking to create broadly diversified, liquid, and transparent investment products for their clients. The new TRFs will further support market participants in managing and hedging portfolios, and provide additional capital and balance-sheet benefits in a standardized, collateral-efficient and centrally-cleared manner. We are excited to keep growing the opportunities in the derivatives market in collaboration with Eurex.”
Axel Lomholt, General Manager at STOXX
With a fixed number of components, the STOXX Europe 600 provides extensive coverage with a diversified allocation across 17 countries and 11 industries within Europe’s developed economies, representing nearly 90% of that investable market.
Stuart Heath, Director, Equity & Index Product Design at Eurex: “STOXX Europe 600 is the de facto broadest representation of the European market and its uptake as a benchmark is reflected in the growth of derivatives tracking it at Eurex. The TRFs add a precision tool to market participants to mitigate directional and financing risks in this index and also in their own products, such as custom baskets, that are based upon the constituents of this index ”
TRFs aim to replicate the returns of traditional bilaterally negotiated equity or equity index-based swaps. However, compared to a bilaterally negotiated swap, central clearing enables portfolio margining, simplifies settlement and mitigates counterparty risk.
The STOXX Europe 600 is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800. With a fixed number of 600 components, the benchmark represents large-, mid- and small-capitalization companies across the 17 countries, the broadest coverage among flagship developed European benchmarks in the industry in terms of number and size of components.
About STOXX
STOXX® and DAX® indices comprise a global and comprehensive family of more than 17,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50®, STOXX® Europe 600 and DAX®, the portfolio of index solutions consists of total market, benchmark, blue-chip, sustainability, thematic and factor-based indices covering a complete set of world, regional and country markets. STOXX and DAX indices are licensed to more than 550 companies around the world for benchmarking purposes and as underlyings for ETFs, futures and options, structured products, and passively managed investment funds. STOXX Ltd., part of the ISS STOXX group of companies, is the administrator of the STOXX and DAX indices under the European Benchmark Regulation.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
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