Nasdaq launches options based on the world´s first ESG benchmark index

Rick Steves

Earlier this month, Nasdaq launched an ESG version of the OMX Stockholm Benchmark Index, designed to track the performance of the securities whose issuers meet specific ESG criteria.

Nasdaq has launched options contracts on the OMX Stockholm 30 ESG index as part of its efforts to expand the firm’s ESG derivatives offering.

With the new contracts, Nasdaq now boasts both options and futures contracts based on the world´s first ESG benchmark index as part of its ESG offering.

The OMX Stockholm 30 ESG index has grown into one of the most traded indexes in Europe since being launched in June 2018.

Developed in partnership with Swedbank Robur and other clients, the options ESG product addresses the growing demand for more sustainable investment solutions.

Magnus Linder, Equity Derivatives Trading & Portfolio Optimization at Swedbank Robur, said: “We are very pleased with the launch of OMXS30 ESG options, as Nasdaq is creating new opportunities for investors with a sustainable focus to optimize their risk and return profile. To be successful, you need to use the entire financial toolbox. We look forward to continuing our partnership with the aim to strengthen the ESG investor landscape in the region”.

Alessandro Romani, Head of European Derivatives at Nasdaq, commented: “With the success of our ESG index futures contracts as a platform, the addition of options allows us to round out our offering and provide our clients a complete suite of derivative products based on one of the leading ESG indexes in Europe. This launch marks the next step in our journey to better help end investors looking to invest responsibly while maintaining the compelling access to liquidity that the OMXS30 index can offer.”

Nasdaq works across the globe to continuously grow its suite of products and services aimed to support investments and risk management in a more sustainable way.

Recent Nasdaq ESG initiatives include the acquisition of carbon removal marketplace Puro.earth and the launch of ESG Data Hub to offer investors expert-led sustainability data.

Nasdaq has recently launched ESG Data Hub as its latest expansion of Nasdaq’s growing suite of products aiming to support investors in their sustainable investment decisions.

The hub connects investors with expert-led ESG (Environmental, Social and Governance) data sets from leading providers across a wide spectrum of areas, including gender diversity, carbon emissions, and climate risk, providing detailed and tangible intelligence on companies’ ESG profiles.

The platform provides consolidated access to information through a single interface. To support transparency and global comparability, all data available in the platform is connected to the Sustainable Development Goals set out by the United Nations. To optimize data quality, Nasdaq has worked with industry leaders within a wide range of categories across the ESG scope.

Data partners include Equileap (Gender equality), Ecogain (Biodiversity), RepRisk (Reputational risk), Munich Re (Climate risk), Inrate (Carbon emissions), Upright Project (Net impact) and Clean Tech (Renewable technology).

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