At the time of the celebration of the 20th anniversary of the PSI 20 futures contacts
Lisbon – 29 June 2016– Euronext is pleased to announce the launch of options on the PSI 20® Index (trading symbol: PSX). Through today’s listing on the Euronext derivatives market these options are made available for trading to the broad European derivatives community.
The PSI 20 options, that complement the existing future and ETF contracts based on the PSI20 Index, offer institutional and retail investors a new way to obtain, manage or hedge exposure to the Portuguese benchmark. The extension of the product offering will enlarge possibilities to act on the developments in the Portuguese economy. The launch of the options on the PSI 20 is a sign of the continuing demand for derivatives contracts on Portugal’s main index.
The new options on the PSI 20 will benefit from day one from continuous competitive on-screen price transparency and a Liquidity Provider Programme, supported by Susquehanna International Securities Ltd.The options are centrally cleared so investors can profit from the capital and operational efficiencies of clearing trades in the same clearing pool as their existing Euronext positions.
As from 27 June, professional investors can also report flex PSI 20 option contracts via AtomX, Euronext’s flexible service that offers the efficiency and security of the regulated market and central clearing to bilaterally negotiated trades. This allows these investors to tailor certain parameters of the contract to suit their bespoke needs (trading symbol: ZPQ).
Liquidity will be provided by Susquehanna International Securities Ltd which is part of SIG Susquehanna-one of the largest market making firms in Europe and worldwide. Javier Arrazubi of SIG Susquehanna said“We are excited to be on board as a Primary market maker for the new PSI20 options listing and will be publishing consistent two-way prices on the screens in order to inject liquidity. We are also happy to provide prices to institutional clients who wish to contact us directly, crossing on exchange.”
Ricardo Dias de Sousa, from Altura Markets: “Altura Markets is proud to witness the launch of the PSI 20 listed options. It has been 20 years since the future was listed and we hope to have nurtured it and helped to trade it in a way that adds value to our clients throughout the years. We are eager to do the same with the options from inception.”
Daniel Mendes, BBVA added: “Launching PSI 20 options is a big step for Euronext and should be very positive for the Portuguese equity market in general. Investors will have at their disposal a wider range of instruments and possible strategies to invest in the Portuguese market. BBVA welcomes this initiative from Euronext and expects to reinforce its long term commitment to the Portuguese equity derivatives market.”
Adam Rose, Head of Financial Derivatives at Euronext added: “Euronext is happy to extend its derivatives offer on the PSI 20 Index via the option contracts. Through this launch we can immediately offer an alternative to clients continuously seeking for new trading opportunities within the safe and transparent environment of Euronext .”
The PSI 20® Index is the Portuguese benchmark which incorporates the companies with the highest market capitalisation listed on Euronext Lisbon. The PSI 20® has a broad sector coverage that includes banks, services, oil and energy, telecommunications and media.
Selection of companies is based on free float market capitalisation and is subject to liquidity requirements to ensure tradability of products based on the index.
PSI 20 Futures
PSI 20® Index Futures will continue to be listed on the Lisbon Derivatives Market. Clients will be able to execute strategies involving both the future and the option on the Portuguese benchmark.
PSI 20 Options
PSI 20® exchange listed options will also benefit from:
- Central clearing via LCH S.A.
- Wholesale facilities for large-in-size business
- Listed on Euronext Amsterdam