International derivatives exchange Eurex is to list futures and options based on Dow Jones’ Global Titans 50 index later this month. This will be the first time derivatives become available on a global blue chip index, says index provider Dow Jones.
Eurex, which executes trades on an electronic platform, has up to now been offering trading derivatives based on the DAX, SMI and Nemax 50, as well as the Dow Jones Stoxx50 and Euro Stoxx 50. The exchange says it has been successful with indices-based derivatives. “Last year’s trading in the Dow Jones index family was the most successful so far,” says Eurex chief executive Rudolf Ferscha.
Global investing is developing significantly, having tripled in the past five years, says Eurex. This move is in response to investor demand for global products. Last year the electronic exchange traded over 454m contracts with 431 market participants in 17 different countries. “Eurex is by far the world’s leading international derivatives exchange and an ideal partner for us,” says David Moran, president of Dow Jones Indexes. With more products being developed based on the Global Titans 50 index, market players are looking for additional trading and hedging instruments, says Dow Jones.

l The index provider, which launched the Dow Jones Sector Titans Indexes in February, says one of the key benefits of its global sector indices is the high liquidity of the components.
“Because the Sector Titans Indexes were created to underlie investment products, they are designed to incur minimal expenses on a relative basis, with high liquidity and low turnover among the primary objectives,” the company says.
The 30 stocks contained in each sector titans index represent at least 50% of the market capitalisation of the underlying sector, which makes relatively high correlation possible between the sector titans indices and broader-based counterparts, it says.