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.

Read this next

Fintech

ANZ deploys CobaltFX’s Dynamic Credit platform

“This new approach to credit management has helped eliminate carve-outs as well as reduce credit usage while improving our market access. This capability benefits our customers, counterparties, and the bank.”

Industry News

FINRA fines M1 Finance $850,000 for misleading ‘finfluencer’ activities

“As investors increasingly use social media to inform their financial decisions, FINRA’s rules on communicating with the public are especially critical. FINRA will continue to consider whether firms are using practices and maintaining supervisory systems that are reasonably designed to address the risks related to social media influencer programs.”

Institutional FX

Eurex launches a new first: STOXX Semiconductor 30 Index Futures

“Recent global uncertainties have prompted nations to prioritize the secure production and distribution of semiconductors. Consequently, our STOXX Semiconductor 30 Index Futures are reflecting the growing appetite for semiconductors as a new investment theme. We are seeing a noticeable demand from Asia in particular, as Taiwanese companies are well represented in the index.”

Fintech

Finalto doubles down on APAC region with oneZero curated liquidity from Tokyo

“We are excited to announce the expanded relationship with oneZero not only by using their Institutional Hub as a key component in our technology stack, but now by adding the Equinix TY3 data center to the LD4 and NY3 data centers. This exemplifies our dedication to providing our customers with cutting-edge technology options in accessing our wide liquidity and product offerings via a seamless trading experience.”

Retail FX

From Backtesting to Arbitrage: Practical Applications of AI in the World of Retail Trading

In this article, the industry leaders delve into the transformative role of AI in trading.

Digital Assets

FTX claim value soars to 92%, creditor sued for reneging on $58M deal

Attestor Capital, a London-based investment firm holding significant FTX bankruptcy claims, has initiated legal action against a Panamanian company called Lemma Technologies.

Digital Assets

OKX to remove Tether trading pairs ahead of MiCA

OKX, the world’s fourth-largest cryptocurrency exchange by trading volume, is discontinuing support for tether (USDT) trading pairs in the European Economic Area (EEA).

Digital Assets

Changpeng Zhao is back with new project post-Binance era

Changpeng Zhao, the founder and former CEO of Binance, hinted at a new educational project on Monday.

Digital Assets

IcomTech owners convicted in crypto Ponzi scheme

A New York jury has found David Brend and Gustavo Rodriguez, former promoters of the crypto mining and trading company IcomTech, guilty of wire fraud conspiracy.

<