Unique market model for the development of option classes on market demand
Amsterdam, Brussels, Lisbon, Paris – 12 June 2014 – Euronext today announced that in July it will launch Spotlight Options, a segment dedicated to the development of new option classes requested by market participants, on its Amsterdam and Brussels derivatives markets. Through a unique combination of Liquidity Provider support and dedicated promotion by Sponsoring Brokers, underlying assets with notable market events or activity will be put in the spotlight, by means of a very straightforward and transparent trading vehicle: options.
On the new Spotlight segment Euronext will initially admit for trading options on Euronext-listed underlying values at the request of and supported by market participants. This will create additional investment and trading opportunities in SMEs and newly listed stocks. The added liquidity and visibility will allow the classes to grow to become mature option classes. The Spotlight Options on Euronext-listed underlying values will have short-term maturities of 1, 2 and 3 months. If these option classes take root, additional maturities will be introduced.
In a second phase Euronext will expand the segment via the introduction of Spotlight Options on other geographies and asset classes, responding to market demand.
Adam Rose, Head of Financial Derivatives at Euronext, said: “Spotlight Options will allow investors to enlarge their option portfolio in our transparent, regulated and cleared trading environment. This is another initiative from Euronext to diversify and build its derivatives portfolio and offer attractive and innovative investment opportunities for our broad range of retail and institutional investors.”