The pan-European market infrastructure Euronext revealed on Monday the launch of a futures contract on the CAC 40 ESG index. The press release detailed that the new contract is based on the ESG version of the French national benchmark index.
The future contract allows market participants to manage and hedge ESG portfolios efficiently and in compliance with ESG principles, while reducing trading costs.
ESG assets will continue to be reallocated from the CAC 40® index, as a result of the new contract. First launched in March 2021, the new CAC 40 ESG index quickly gained popularity. A year later, one quarter of the assets under management of the CAC 40 index have now been transferred to the CAC 40 ESG index.
Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext, said:
After the strong success of the ESG version of the CAC 40 index, we are proud to provide investors today with a powerful tool to reallocate their investment flows towards sustainable finance, since they play a key role in making this transition of flows a reality. As the CAC 40 index future is the most traded index future on Euronext, we are opening a new avenue in the development of responsible finance by launching the ESG version of this blue-chip index futures contract.
Alexandre Benech, Global Head of flow trading at BNP Paribas Global Markets, added:
BNP Paribas supports the growth of ESG benchmarks as an important driver to increased transparency in this market, and as such will be a liquidity provider on the new CAC 40 ESG index future. BNP Paribas also provides liquidity on existing CAC ESG ETFs onto exchanges and for our clients.
Recently, Euronext registered a 58.8% increase in Q1 revenue and income, coming in at EUR 395.7 million.