Eurex reports mixed volumes for November 2022

abdelaziz Fathi

Deutsche Börse’s derivatives-focused exchange, Eurex today said its total traded derivatives contracts grew by 10 percent in November, from 68.6 million to 75.3 million compared to the same month last year.

Eurex’s profit sharing scheme continues to win clearing business from rivals in the UK even as the battle for euro-clearing continues. Since Britain fully left the EU, clearing euro derivatives has become a Brexit battle as Brussels seeks to build up the bloc’s own capital market and end reliance on London.

Index derivatives were again the standout sector with a double-digit year-on-year growth. However, interest rate derivatives decreased by 6 percent compared to the high level of the previous year, from 50.3 million traded contracts to 47.4 million. Equity derivatives contracts traded fell by 20 percent in November, from 23.5 million to 18.8 million compared to the same month last year. Collectively, total contracts traded at Eurex stayed nearly unchanged with 141.8 million after 142.5 million in November 2021.

Eurex disclosed that notional outstanding volumes in OTC clearing grew by 29 percent compared to November 2021 despite another successful compression run. Overall outstanding volume stood at EUR 27,344 billion at the end of November vs. EUR 21,255 billion the year before – with interest rate swaps and overnight index swaps posting growth of 18 percent and 106 percent respectively. Average daily cleared volumes grew 7 percent, with overnight index swaps nearly doubling.

At Eurex Repo, average daily term-adjusted volume grew by 27 percent compared to November last year – up from EUR 191.7 billion to EUR 243.8 billion. The GC Pooling market was up 13 percent while the Repo Market grew by 34 percent year-on-year.

The Eurex FX offering of classic FX futures and options, in combination with the rolling spot futures, allows traders to manage their FX exposures with listed products.

The pan-European exchange has made efforts over the past year to expand its FX trading business, most recently signing major banks to support their FX futures, from clearing to trading.

Eurex’s currency trading desk currently offers various FX derivatives products, including FX futures available in 19 currency pairs, all with quotation and tick sizes in-line with existing OTC FX standards. A liquidity scheme caters for tight pricing and competitive liquidity, it says.

However, London remains the pre-eminent in FX and OTC derivatives, which are used by investors to hedge their portfolios, but market participants are concerned that the Brexit deal will cause disruption in the cross-border derivatives market.

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