BNP Paribas is pleased to announce that it has been appointed a market maker for dividend index futures on the Hong Kong Exchanges and Clearing Limited (HKEx) with effect from 1st November 2010. BNP Paribas is amongst the first three market makers to have secured this status.
The HSI Dividend Point Index and HSCEI Dividend Point Index, which are calculated by Hang Seng Indexes Company Limited, measure the total cash dividend value for all constituent stocks of the underlying index – the Hang Seng Index (HSI) and the Hang Seng China Enterprises Index (HSCEI, or H-shares index) respectively – expressed in terms of index points. Hong Kong is the second Asian financial market which can be accessible via dividend futures.
Pierre Rousseau, Head of Global Equities and Commodity Derivatives (GECD) for Asia Pacific, BNP Paribas, said, “This is another step within a number of key initiatives launched in Asia Pacific as BNP Paribas extends its services and solutions for institutional equity and hedge fund clients.” GECD is a key business line of BNP Paribas Corporate and Investment Banking.
According to Stephane Ritz, Head of Trading, GECD for Pan Asia of BNP Paribas, dividend index futures will have considerable potential in Hong Kong, as it is a good hedging tool for dividend exposure as well as a way to diversify from the conventional products. “This product brings transparency to over-the-counter market and allows investors to access dividends via listed equity derivatives futures on stock exchanges,” Mr. Ritz said.
BNP Paribas is a leading player in major dividend index futures, including Nikkei 225 Index and Euro Stoxx50 Index.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) is one of the six strongest banks in the world* and the largest bank in the eurozone by deposits. With a presence in more than 80 countries and more than 200,000 employees, including 160,000 in Europe, BNP Paribas is a leading European provider of financial services on a worldwide scale. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Retail Banking, the Group has four domestic markets: Belgium, France, Italy and Luxembourg. BNP Paribas is rolling out its integrated model across the Europe-Mediterranean zone and boasts a large network in the United States. BNP Paribas Personal Finance is the leader in consumer lending in Europe. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe and solid and fast-growing businesses in Asia.
* Rated AA by Standard & Poor’s i.e. 3rd rating level on a scale of 22.
About BNP Paribas Corporate and Investment Banking
BNP Paribas Corporate and Investment Banking employs about 20,000 people in over 50 countries and services 13,000 corporate and institutional clients worldwide.
BNP Paribas CIB excels in:
Derivatives – where it is one of the leading global players in rates, credit, forex, commodity and equity derivatives.
Capital markets – where it is one of the top European houses in both ECM and DCM (bond, securitization, convertibles and equity issuance)
Structured finance – where it is amongst the leaders in acquisition, export, project, energy and commodity finance globally.
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