Eurex has launched Bloomberg US Corporate Index Futures and Bloomberg US High Yield Very Liquid Index Futures, building out its global credit index futures product suite.
Credit index futures contracts use an established derivatives structure to allow clients to hedge or take synthetic long exposures to global credit markets, Eurex explained. This announcement follows a steady increase in growth for the produce across Europe, it added; in August 2024, the company saw more than €26.7 billion traded notional in credit index futures.
Lee Bartholomew, global head of FIC ETD product design at Eurex, commented: “We have decided to go for a global approach for a one-stop shop to build out this new asset class. Combining this product suite with our other fixed income futures will add further efficiencies for market participants from a margin and capital perspective.”
The company began offering the products in 2021, with EURO Investment Grade, EURO High Yield, USD Emerging Markets and GBP Investment Grade index futures already available.
Those using the suite to trade global benchmark index futures will benefit from margin savings, Eurex said, thanks to its management system Clearing Prisma. In future, it hopes to enable margin offsets between fixed income futures and credit index futures in order to enhance its margin optimisation processes, the company shared.
©Markets Media Europe 2024
