Euronext, a leading European trading venue operator, announced on Monday that it had launched a futures contract on the CAC 40 ESG index. According to the press release, the new contract is based on the ESG version of the French national benchmark index.
Through the use of a futures contract, market participants will be able to manage and hedge ESG portfolios efficiently and in compliance with ESG principles, while decreasing trading costs. As a result of the new contract, ESG assets will continue to be reallocated from the CAC 40® index. Initially, it was launched in March 2021, the CAC 40 ESG index quickly gained traction.
It offers asset owners a cost-effective way to integrate sustainable factors into their portfolios. The CAC 40 ESG index now manages a quarter of the assets under management of the CAC 40.
Reallocating Investment Flows towards Sustainable Finance
“After the strong success of the ESG version of the CAC 40 index, we are proud to provide investors today with a powerful tool to reallocate their investment flows towards sustainable finance since they play a key role in making this transition of flows a reality. As the CAC 40 index future is the most traded index future on Euronext, we are opening a new avenue in the development of responsible finance by launching the ESG version of this blue-chip index futures contract,” Stéphane Boujnah, the CEO and Chairman of the Managing Board at Euronext, commented.
Alexandre Benech, the Global Head of Flow Trading at BNP Paribas Global Markets, added: “BNP Paribas supports the growth of ESG benchmarks as an important driver to increased transparency in this market, and as such will be a liquidity provider on the new CAC 40 ESG index future. Moreover, BNP Paribas provides liquidity on existing CAC ESG ETFs onto exchanges and for our clients.”
Recently, Euronext reported a 58.8% jump in its Q1 revenue and income, which came in at EUR 395.7 million.
