Total Return Futures (TRF)

Keeping on surfing the new wave of derivatives with the Euronext Total Return Futures

Gain exposure to the implied equity repo rate on the constituents of the CAC 40^® Index and of the FTSE MIB Index in a transparent and secure trading environment.

Designed to replicate the full economics of OTC Total Return Swaps in a cost-effective manner, TRFs simplify product settings to better suit the exchange environment.

Being traded on Euronext, the contracts offer transparency and accessibility via a centralised order book, and central clearing via Euronext Clearing. They provide a solution to the increased capital requirements arising from regulatory changes when trading OTC transactions, and allow investors to access implied equity repo as a new asset class.

What are the key benefits of trading the Euronext CAC 40^® Index and FTSE MIB Index Total Return Futures?

Provide cost-effective solutions replicating the full economics of OTC Total Return Swaps
Enable to gain exposure to the implied equity repo rate on the index constituents in a transparent and secure trading environment via a centralised order book
Offer long-term exposure with quarterly maturities available up to 10 years
Leverage the Euronext Clearing's robust risk management capabilities to mitigate counterparty risk and provide strong margin offsets
Ensure payoff accuracy and fungibility through a clear daily settlement procedure and the possibility to trade at the index close
Provide market transparency with on-screen prices and improved liquidity supported by leading market makers, quoting a spread as an annualised rate in basis points (+/-)