Eurex expands equity index derivatives segment

Eurex Exchange, the international derivatives market of Deutsche Börse Group, will launch a new equity index contract on October 28. The Mini DAX Futures will be offered in addition to the existing DAX Futures (FDAX). Its key distinguishing feature is the significantly lower contract value, at only a fifth of the DAX Futures.

“The new Mini DAX Futures contract addresses together with the existing DAX Futures the needs of our users for more precise fine tuning of their hedging positions,” said Mehtap Dinc, a member of the Eurex Executive Board. “At the same time, it is also aimed at semi-professional investors who are primarily investing into OTC products like CFDs because of the large contract value of the DAX Futures.”

Eurex Exchange says it will offer a designated market-making programme in order to provide a liquid order book from the outset. It says a number of market participants have already expressed their interest in this.

The Mini DAX Futures have a contract value of €5 per index point and the minimum tick size is one index point. It will be settled in cash. The product will be tradable from 08.00h to 22.00h CET.