B3 launches products that track European stock indices

Brazilian investors interested in taking advantage of opportunities in the international market won this Monday (20) two new options to add to their portfolio.

The global index provider Qontigo and B3 announced the listing on the Brazilian stock exchange of two futures contracts referenced in the main European indices.

The Euro Stoxx 50 Index and the Dax Index will be the underlying assets of equity index derivatives and, according to B3, this will be the first time that these indices will be available to Brazilian investors.

The Euro Stoxx 50 Index is the main European index of stocks known as blue-chip in the market, of large companies. The index comprises 50 stocks from eight Eurozone countries: Belgium, Finland, France, Germany, Ireland, Italy, Netherlands and Spain. In the year to December 17, the index accumulates a high of 17.1%.

The Dax Index tracks the performance of the 40 largest companies listed on the regulated market of the Frankfurt Stock Exchange, in Germany, which meet certain minimum quality and profitability requirements. The selection is based on the market capitalization adjusted to the free float (shares being traded on the market). The index has appreciated by 13.21% in the year.

The indices will be traded in euros, but offset in reais. According to the Exchange, this will allow investors registered in Brazil to access two of the main European futures indexes through their local market and without exchange risks.

“The listing of the EURO STOXX 50 and DAX futures indices is an important initiative by B3 to expand the offer of financial instruments to Brazilian investors. Now these investors will have even more possibilities to diversify their portfolios from the main European indices,” said Claudio Jacob, director of market and customer development at B3, in a note.

The executive highlighted that the launch takes place at a time when the Brazilian Stock Exchange registers a significant increase in the number of individual investors, with a mark close to 4 million accounts.

“The EURO STOXX 50 futures and DAX futures will allow Brazilian investors to express their opinion on the development of Europe and Germany – the biggest economy in the Eurozone,” said Sean Smith, managing director of derivatives at Qontigo.