Euronext Rolls Out PSI 20 Options, Extending Portuguese Offering to Europe

The options launch extends Portuguese benchmark exposure to institutional and retail investors.

Euronext has expanded its PSI 20 Index (PSX) with the launch of a new options offering, which will be made available immediately for both institutional and retail investors, according to a Euronext statement.

The expansion helps cater to the broader European trading community – the PSI 20 Index is the de-facto Portuguese benchmark that incorporates a leading composite of companies with the highest market capitalization listed on Euronext Lisbon. The PSI 20 Index currently yields broad sectoral coverage that includes banks, services, oil and energy, telecommunications, and media.

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In addition, the PSI 20 Index options will also complement existing future and exchange-traded funds (ETF) contracts that are based in part on the PSI 20 Index, helping extend Portuguese benchmark exposure to institutional and retail investors. The launch of the options on the PSI 20 is also a signal of a growing demand for derivatives contracts on Portugal’s main index. Once left for dead, the Portuguese economy has achieved some level of stability in past years, with its stock indices showing signs of life.

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In particular, traders of the PSI 20 option contracts can report flex options contracts via AtomX, Euronext’s versatile service that helps promote regulated market and central clearing to bilaterally negotiated trades. The index itself will also be backed by Susquehanna International Securities, which will be providing liquidity for the options. As a primary market maker for the PSI 20 options, the group aims to kindle interest amongst institutional clients.

Adam Rose
Adam Rose

According to Adam Rose, Head of Financial Derivatives at Euronext, in a recent statement on the options launch: “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.”

“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,” reiterated Daniel Mendes, Equities and Derivatives Trading Specialist at BBVA, in an accompanying statement.

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