Euronext has announced that it has rolled out a futures contract on the CAC 40 ESG index. The leading European trading operator stated that the new contract will be based on the French benchmark index for the ESG.
BNP Paribas And Société Générale To Serve As Market Makers.
The futures contract will enable market participants to easily manage and hedge their ESG portfolios while reducing trading costs and staying within the confines of the ESG principle. The CAC 40 ESG index was first launched in March 2021, but it has gained traction and momentum since then. According to the announcement, Société Générale and BNP Paribas will serve as market makers.
It gives asset owners a cheaper way of integrating sustainability factors into their portfolios. Following the launch of the futures contract, the CAC 40 ESG now manages 25% of CAC 40’s assets under management.
Global Head of Flow Trading at Paribas Global Markets, Alexandre Benech, stated that the company will always support the growth of the ESG benchmarks. He noted that the ESG is important as a driver of high market transparency. As a result, it will be a liquidity provider on the CAC 40 ESG index future. Additionally, BNP Paribas is a liquidity provider on the existing CAC ESG ETFs for clients and exchanges.
Offering Investors A Powerful Reallocation Tool
Chairman and Chief Executive Officer of Euronext, Stéphane Boujnah, also commented on the development. He stated that the ESG version of the CAC 40 index has recorded a strong success. However, the next stage of the growth has taken off as the company offers investors a powerful tool that reallocates their investment flows. This will ensure sustainable finance due to the major role they play in making the transition possible.
Boujnah stated that CAC 40 index is the most traded future on Euronext. This makes it very vital as the company rolls out the ESG version of the blue-chip index futures contract.
Despite the slow performance level in the market this year, Euronext has managed to stay profitable. The company recently released its trading report for the first quarter of the year, which shows a revenue increase of 58.8%.