Eurex is set to list daily options amid increased institutional demand for options with short-term expiries as investors look to target exposures or hedge risk around specific events.
Trading in EURO STOXX 50 Index EoD Options (OEXP) will start 28 August 2023 and will be offered with expirations on the next five trading days. The new contracts will be settled “end-of-day” based on the index closing price calculated at 17:30 CET compared to the intra-day expiry at 12:00 CET in the already listed EURO STOXX 50 Index Options (OESX).
Eurex executive board member Randolf Roth said: “Particularly against the backdrop of increasingly volatile markets, daily options are another innovative solution for the professional market to efficiently manage exposures in a regulated and transparent market environment.”
OEXP will offer in addition to daily expirations also month-end expirations. These will be available for the next three consecutive months. Four liquidity providers have committed to provide quotes for this new offering as of trading day one.
In July nearly 19 million OESX contracts and more than 15 million EURO STOXX 50 Index Futures contracts were traded at Eurex.
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