Listed Derivatives

Tom Shuttlewood, Head of Strategy and Digital Asset Indices within Product Development at STOXX, spoke during the Eurex Focus Day on Volatility about possible avenues to expand the current offering of the STOXX volatility indices.

So-called buffer ETFs offer investors exposure to the market’s ups and downs, with limits on both directions — hence providing potential gains and protection. A new STOXX whitepaper explores the relative performance of a hypothetical European buffer index over the short and long term to assess its benefits and drawbacks.

The TRFs were listed in September last year, expanding the pan-European benchmark’s trading ecosystem. TRFs have seen strong demand from market participants as a hedge against the long-term financing and dividend risks of equity positions.

The index selects European companies from ICB’s Aerospace and Defense Sector that have revenues from specific defense activities, seeking a focused strategy on the military re-equipment theme.

As the main gauge for Eurozone equity volatility enters its third decade of existence, we asked experts at Eurex and STOXX what the index represents in the current trading environment.

A total of 4.3 million EURO STOXX 50 Index Dividend Options exchanged hands at Eurex last year, 11% more than in 2023 and 25% higher than in 2022.

The annual event showcasing the latest developments in the listed derivatives world offered a stage to discuss equity index strategies and index-based investing. STOXX participated in several insightful panels.

VDAX, the benchmark for German equity implied volatility, remains below its long-term history and lower than other regions’ volatilities.

The STOXX Europe 600 Banks index climbed 26% last year, its best performance since the 34% logged in 2021. High capital ratios, stronger earnings and expectations of consolidation in the industry helped share prices.

Volatility is playing an increasingly important role in markets and portfolios. We sat down with two experts to ask them how investors use listed derivatives such as VSTOXX and VIX futures and options to trade market swings.

The STOXX Europe 600 has become the underlying index for Total Return Futures (TRF), launched today on the derivatives exchange Eurex.

The TRFs were listed on September 30, expanding the leading pan-European benchmark’s trading ecosystem. TRFs have seen strong demand from market participants as a way to efficiently gain exposure to price-plus-dividend returns of shares and indices.