Author: Gordon Platt

Eurex, the derivatives exchange owned by Deutsche Börse and SWX Swiss Exchange, will introduce a future on April 23 on an index created by the Vienna Stock Exchange that contains the 15 largest Russian depositary receipts traded on the London Stock Exchange.

The RDXxt index future will provide a liquid and cost-effective hedging instrument for investors in Russian equities, according to Eurex. The exchange is launching a series of derivatives on Russian equities that will be traded in dollars and are aimed at US investors. They will include 15 single-stock futures on the constituent components of the RDXxt index and four new options on Russian equities for Gazprom, Lukoil, Norilsk Nickel and Surgutneftegaz.

“With these products, our customers can participate immediately in the rapidly expanding Russian market,” says Eurex CEO Andreas Preuss. “We are offering our clients attractive investment and diversification opportunities in one of the most important emerging markets,” he adds. Eurex plans to introduce a series of emerging markets products, starting with the derivatives on Russian securities.

Settlement of the Russian DR index future will be made in cash, with one index point equivalent to $25. The future will have a maximum maturity of nine months, with expiration dates in March, June, September and December. The index meets the US regulators’ definition of a broad index, as well as UCITS regulations, which are significant for European financial products.

Gordon Platt