The international derivatives exchange Eurex is listing options based on a range of six Lyxor ETFs, providing exposure to the emerging markets.
The new options cover Lyxor funds tracking the DJ Russia Titans, DJ Turkey Titans, Hang Seng China Enterprise, Hang Seng, CECE Eastern Europe and MSCI Emerging Markets indices.
The new options, due to be launched on 20 September, bolster the inaugural option product suite unveiled in May. Around 70,000 contracts have been traded since the first set of options on ETFs were released.
Eurex executive board member Peter Reitz says the options offer hedging opportunities for both investors and ETF issuers. He adds Eurex offers 13 options and three futures on ETFs.
Listed options also allow for yield enhancement and leverage strategies, through a transparent, accessible vehicle.
The options will be traded in euros and physically settled, with maturities of up to two years. The contract size will be 100 units and Société Générale will be the market maker, to ensure liquidity.
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