Eurex to take ESG offering global 10 December 2019London Reporter: Maddie Saghir
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The global derivatives exchange Eurex will expand its environmental social and governance (ESG) offering to a global level with the launch of new futures using MSCI ESG Screened Indexes in 2020. From March, Eurex will introduce derivatives on sustainable versions of various regional and global benchmarks. The products will use MSCI’s ESG screened index suite and will cover the US, Europe, emerging market countries, Australasia and the Far East, and Japan. According to MSCI, the indexes aim to represent the performance of an investment strategy that excludes companies from the parent index that are involved in business activities of ‘controversial’ weapons, nuclear weapons, civilian firearms, tobacco, thermal coal, and oil sands extractions. This new expansion follows Eurex’s and MSCI’s recently agreed, long-term extension of their strategic relationship that includes new licences for Eurex’s listed ESG equity index derivatives. Eurex first launched its ESG strategy in February when it introduced the first European ESG derivatives product suite, a segment that Eurex says has traded nearly 500,000 contracts so far this year. Michael Peters, a member of the Eurex executive board, commented: “Driven by the growth of ESG assets, the strong demand from both retail and institutional investors, and the overall dynamics of the market, we want to give our clients maximum flexibility when it comes to selecting their ESG investment approach.”
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