Deutsche Boerse has launched a new Dax index aimed at the market for structured products, the new XDaxdax index covers the full trading hours of the derivatives market, from 8am to 10pm CET.
The new index aims to enable customers to use just one index as an underlying for their products that are linked to the performance of Dax before, during or after Xetra trading hours. With full coverage of US trading hours, it aims to minimise the risk of overnight losses.
“The XDaxdax gives structured product providers a simple and transparent means of covering the full trading hours of the derivatives market, from 8am to 10pm. The index is a logical addition to the current DAX index family and combines the concepts of the Dax and the XDax indices under a single identifier,” said Hartmut Graf, CEO of STOXX Limited.
The XDax is an indicator that calculates the performance of the Dax outside Xetra trading hours based on prices of Dax futures traded on the Eurex derivatives exchange and the European Central Bank’s Euribor interest rates.