European ETF issuers target derivatives, but swap access hampers innovation
LONDON, November 12th, 2026 – The use of derivatives in Europe’s ETF market is on the rise, with 86% of ETF issuers saying their use of derivatives in ETFs and ETPs has increased over the past three years and 96% expecting their use to increase over the next three years, a new report from Acuiti has found.
Redefining European ETFs: The growing role of derivatives, which is released today in partnership with Marex, is based on a survey and series of interviews with 30 European issuers active in the ETF and ETP market.
The report finds that, while derivatives have long played a role in European ETFs through synthetic replication, currency hedging and leveraged exposures, issuers are increasingly using them to broaden the range of strategies and outcomes that can be delivered through the ETF wrapper.
Of the 86% of respondents saying their use of derivatives has increased over the past three years, 36% reported a significant increase. Client and investor demand is the biggest driver of this growth.
Defined outcome ETFs, which use options to offer buffered, capped or floored returns, are at the forefront of that growth. A third of issuers have already launched a defined outcome ETF and even more have products in active development with a launch expected within 12 months.
However, bringing options-based products to market in Europe presents some challenges. Investor education and UCITS constraints were the joint most commonly cited obstacles.
Despite the recent demand for options, total return swaps remain the most widely used derivative in European ETF construction. Among swap users, a majority cite access to exposures that would be difficult or impossible to replicate physically as a main benefit of swaps.
However, counterparty access is influencing which products reach the market. Eighty-four percent of issuers have been unable to launch, or have had to materially change, a product because they could not secure a swap counterparty on acceptable terms.
The relationship with counterparties extends well beyond pricing. A dealer’s ability to support a product beyond launch, as well as speed and responsiveness during product development were both highly valued by ETF issuers.
Looking ahead, distribution and education were cited as the most important factors in unlocking the next phase of innovation.
“Europe’s ETF market is entering a new phase of growth, and derivatives are at the centre of it,” said Ross Lancaster, Head of Research at Acuiti. “Issuers are moving quickly into defined outcome products, and synthetic replication continues to open up exposures that would be difficult or costly to access physically.
“Europe has the opportunity to build this market around its own investor base and market structure – the next step is turning that momentum into products that can be distributed widely.”
“Selecting a swap counterparty is a complicated process in any market, but the fierce competition to innovate in current ETF markets adds an extra level of challenge for issuers,” said Matt Johnson, Head of Business Development ETF Capital Markets – EMEA).
“Choosing the right swap counterparty is therefore a vital step in executing an ETF product strategy and as the research shows, not just in pricing but the ability to create niche exposures that can give issuers a first mover advantage.”
The full report, Redefining European ETFs: The growing role of derivatives, is available to download here.
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For more information, contact Ross Lancaster at Acuiti
Tel.: +44 (0) 203 998 9687
Email: rosslancaster@acuiti.io
About Acuiti
Acuiti is a management intelligence platform serving senior executives across the global derivatives, ETFs and fixed income markets. Through its exclusive expert networks, Acuiti gathers anonymised insight from banks, brokers, proprietary trading firms and buy-side institutions, publishing benchmarking data, quarterly sentiment analysis and bespoke research on the trends shaping the industry. Founded in 2019, Acuiti brings greater transparency to operations across global markets. Visit acuiti.io.
About Marex
Marex Group Limited (NASDAQ:MRX) provides market access, infrastructure services and essential liquidity to clients across global commodity and financial markets. The Group provides comprehensive breadth and depth of coverage across four services: Clearing, Agency and Execution, Market Making and Hedging and Investment Solutions. It has a leading franchise in many major metals, energy and agricultural products, with access to more than 60 exchanges.
Marex has over 3,400 active clients, including some of the largest commodity producers, consumers and traders, banks, hedge funds and asset managers. With more than 50 offices worldwide, the Group has over 3000 employees across Europe, Asia and the Americas. For more information visit www.marex.com.