ZUG, Switzerland and SAO PAULO, Nov. 3, 2021 /PRNewswire/ — Qontigo and B3 announced that Qontigo has licensed two flagship European indices to be listed as futures contracts on the Brazilian exchange. The EURO STOXX 50 Index and the DAX Index will serve as underlyings for equity index derivatives, making these indices available to Brazilian investors for the first time.
They will be traded in euros but cleared in Brazilian Real (BRL). This allows investors based in Brazil to access two leading European index futures via their home market and without any currency risk. B3 already offers similar foreign benchmarks in the original currency but cleared in BRL.
“The listing of the EURO STOXX 50 and DAX Index futures is an important initiative by B3, the main financial infrastructure in Latin America and the second in volume of derivatives in the world, to expand the offer of financial instruments to Brazilian investors. In this way, they have even more possibilities to diversify their portfolios from the main European indexes. The arrival of these products also occurs at a time when the Brazilian stock exchange experiences an exponential increase in individual investors, reaching more than 4 million accounts”, says Claudio Jacob, managing director of Clients and Business Development at B3.
Sean Smith, Managing Director, Derivatives at Qontigo said: “The expansion of our flagship indices to Brazil is an important step for Qontigo as we look to meet the growing global demand for derivatives based on our benchmarks. In particular, the futures on the EURO STOXX 50 and the DAX will provide access for Brazilian investors to express their views on the development of Europe and Germany, the largest single economy in the Eurozone.”
The EURO STOXX 50 Index, Europe’s leading blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the region. The index covers 50 stocks from eight Eurozone countries: Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands and Spain.
The DAX Index tracks the performance of the 40 largest companies listed on the Regulated Market of the Frankfurt Stock Exchange that fulfill certain minimum quality and profitability requirements. Constituent selection is based on free float market capitalization.
B3 will launch the futures contracts based on EURO STOXX 50 and DAX in December. The sizes of futures contracts will be the value of the EURO STOXX 50 Index multiplied by the value in euros of each point, with each point equivalent to 10 euros and the value of the DAX Index multiplied by the value in euros of each point, with each point equivalent to 5 euros The expiration date will be the third Friday of the months of March, June, September and December.
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