The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Single-stock futures: Eurex hopes for SSF boom

Ucits III opens the door to sustainable growth of single-stock futures. Over the past five years the exchange’s USF market has grown by an average of 57% a year, and there may be more to come.

By John Ferry

The market for single-stock futures could finally be about to take off, according to Eurex, the latest big exchange to list the products. Volumes have jumped month on month since the Frankfurt-based exchange premiered its SSF products in October. Ralf Dreyer, director and head of Eurex’s equity derivatives product design section, says the market might be about to bid farewell to several years of slow growth.

“We always said that as soon as we could see market demand for single-stock futures from our clients or their end clients, then we would be willing to set up that product segment,” says Dreyer. “That happened over the course of the last year, and that’s why we came up with the product in October.”

Trading volumes in January rose to about 287,000 contracts, compared with 61,932 in December and 13,642 in November. At the end of January open interest in SSF was 328,000 contracts. SSFs available include contracts on the Dow Jones Euro Stoxx 50, the German Dax and the Swiss Market Index. Trading fees are €0.30 per contract, with caps set at €300 and €600 for block trades.

Dreyer says the phasing in of the European Union’s Ucits III legislation, which is designed to widen the range of investments EU asset managers can make while encouraging cross-border marketing of funds, is laying the foundations for sustainable growth in the SSF market.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree