No trading and clearing fees for the new contracts until the end of the year
The international derivatives exchange Eurex is expanding its offering of Swiss underlying products to include futures and options on the SLI Swiss Leader IndexÂ®. The new products will be launched on 22 October. The SLIÂ® index includes the 30 most liquid and largest stocks on the Swiss stock market and has been calculated by SWX Swiss Exchange as an addition to the SMIÂ® bluechip index since 2 July 2007. The SLIÂ® index offers international investors a basis that meets regulatory requirements, and the desired diversification for the Swiss market.
Eurex expects demand for derivatives on the SLIÂ® index to come from both Swiss and international participants. The new index product, unlike the SMIÂ® is UCITS-compliant and meets the CFTCâs criteria for a âbroadâ index.
The new futures contract has similar specifications to the current SMIÂ® future. One index point corresponds to a value of CHF 10, there are four expiration dates a year, and settlement is made in cash. The tick size of the SLIÂ® Index future is CHF 5, as opposed to CHF 10 for the SMIÂ® future.
At CHF 13,500, the contract size is far smaller than for the SMI contract, which has a contract size of CHF 87,000. This also makes the product more attractive for retail investors.
Options on the SLIÂ® index will have a contract size of CHF 10 per index point. The minimum tick size is 0.1 index points, or a value of CHF 1 and the options will have a maximum maturity of 60 months.