Santander joins Eurex as listed FX trading takes off

Rick Steves

“Integrating FX futures and FX options within the Eurex ecosystem unlocks operational efficiencies and enhances our risk netting capabilities.”

Profit of Banco Santander

Santander Asset Management Europe has started expanding their FX futures business to Eurex, supported by Banco Santander as Clearing Member and Deutsche Bank as liquidity provider.

The latest move by the Spanish asset manager underlines the trend towards listed FX business as more and more market participants are utilizing listed FX derivatives as a tool to hedge their portfolio performance.

Amid rising costs stemming from counterparty risk and related regulations, centrally cleared FX futures and options help market participants to mitigate counterparty credit risk, navigate uncleared margin rules (UMR) and optimize capital costs.

According to the announcement, Santander also plans to establish an FX options business at Eurex after already trading its first FX options block trade ever at Eurex, supported by Deutsche Bank.

Eurex wants to be the leading FX liquidity hub in Europe

Eurex has processed over 1.7 million contracts in 2023, nearly three times compared to 2020 when a total of 600k contracts have been traded. In Q1 2024, the number of traded contracts reached 586,000, up by 16% YoY.

Jens Quiram, Global Head FIC Derivatives and Repo Sales at Eurex, commented: “We are proud to welcome Santander Asset Management. This is a great addition on our way to becoming the leading FX liquidity hub in Europe. By now trading and clearing listed FX derivatives on Eurex, Santander Asset Management benefits from low exchange fees and regulatory certainty within the EU.”

Imanol Urquizu, Head of Derivatives at Santander Asset Management, added: “We look forward to working with Eurex to expand our listed FX business in Europe. In addition to our engagement in FX futures we actively collaborate with multiple FX dealers to explore the trading of FX options at Eurex. Integrating FX futures and FX options within the Eurex ecosystem unlocks operational efficiencies and enhances our risk netting capabilities.”

Mario Muth, Global Head of Platform and Listed Derivatives Sales and Head of Fixed Income Market Structure at Deutsche Bank, stated: “Deutsche Bank is pleased to provide liquidity to the FX segment at Eurex and is proud to partner with Santander Asset Management to deliver this important initiative. Trading FX on Eurex enables clients to benefit from the efficiencies of a listed derivatives market, and this is a prime example of how Deutsche Bank partners with clients and trading venues to provide liquidity and solutions in the evolving FX market.”

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