Euronext to launch option contracts on Portuguese companies

  • Lusa
  • 20 January 2022

Euronext Lisbon intends to "launch in the first weeks of the year" options contracts on Portuguese companies.

Euronext Lisbon will launch options contracts on Portuguese companies early this year, expected to be of particular interest to retail investors, the chief executive officer of the Lisbon stock exchange, Isabel Ucha, said on Thursday.

Isabel Ucha explained that Euronext Lisbon has futures contracts on the PSI20 and some Portuguese companies, so it intends to “launch in the first weeks of the year” options contracts on Portuguese companies.

Options contracts grant a right to buy or sell an asset at a given price in the future. In these cases, the seller undertakes the obligation to sell the asset, while the buyer retains the right but not the obligation.

Despite stressing that “options are an instrument that is of interest to any type of investor”, the chief executive of the Lisbon stock exchange admitted the expectation that “it may be of particular interest to retail investors”.

“More than futures, which are a more institutional instrument, options tend to be an investment more of the individual investor,” she said.

Isabel Ucha stressed that the Portuguese derivatives market grew 9% in 2021, so she believes there is a context “that could be positive for these instruments”.

This is one of Euronext’s priorities for Portugal this year as part of the preparation of the offer of more products and more trading features, such as access to the Italian market, ETF, certificates and clearing to increase liquidity and create investment opportunities and capture of national and international savings.

Euronext also wants more companies and public entities, including governments and municipalities, to use the capital market, so it is “working” on its “capacity building programmes, partnerships and individualised prospection and dialogue with the Government and regulators”.

She also said that better legal, regulatory and tax framework is a priority for 2022, “as part of the agenda of a new government that adopts it as a pillar of its growth strategy,” and said it would seek to “implement” the OECD’s recommendations and the work of the task force created in this area for market development.

Isabel Ucha also noted that the Porto Technology Centre would be a fundamental pillar of implementing the transformational projects of Euronext’s strategic plan, noting that Euronext wants to lead the agenda of sustainable financing in the market.

The head of the Lisbon stock exchange also stressed that 2022 begins a new strategic cycle for Euronext, the “Growth for Impact 2024”, which, she says, will be “associated with some major transformational projects that will have a very positive expected impact in Portugal”.