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Montréal Exchange launched six new sector index futures in the second quarter of this year, focusing on energy, financial services, insurance, media, telecommunications, and real estate.
These products will provide all the benefits of trading futures in terms of hedging risk, lower margins, portfolio diversification, and efficient use of capital. But they will differ from the existing sector index futures on MX by being Total Return Futures (TRF) contracts.
Sector index products play an important role in the financial markets and their increasing usage demonstrates their necessity.
CENTRALIZED CLEARING SERVICES
BETTER RISK MANAGEMENT PER SECTOR
NEW TRADING OPPORTUNITIES
Total Return Sector Index Futures
Methodology
Contract
Specifications
Reduce risk: TRFs are exchange-traded and benefit from margin maintenance, cost optimization, and central clearing functions.
Short and long-term exposure: The sector index futures will have four quarterly maturity dates providing both short-term and long-term exposure of up to one year.
Hedging: Investors can lock in a 12-month interest rate in the calculation of the basis of the futures contract, thereby avoiding roll risk.
Maximize portfolio performance: Sector index futures can be used as an overlay, reducing direct exposure to carbon intensive industries while still benefiting from the sector’s overall performance.
Extended trading hours: Montréal Exchange offers almost 24 hours of trading for global investors, with sector index futures available at the start of European trading hours.
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Why invest in Total Return Sector Index Futures?
Index Mathematics
Methodology
GICS Methodology
Total Return Sector Index Futures
NOW AVAILABLE
MONTRÉAL EXCHANGE
ABILITY TO EFFECTIVELY GENERATE RETURNS PER SPECIFIC ECONOMIC SECTOR
FLEXIBLE EXECUTION VIA CENTRAL LIMIT ORDER BOOK, EFR, EFP, AND BTC
Benefits
Equity Indices Policies & Practices
