Oct 07, 2022
Eurex
Equity Index market briefing October 2022
Strong volumes across EURO STOXX 50 and STOXX Europe 600 index products
Apologies for beginning with a lament, but it feels like none of the old problems go away while we just introduce new ones. Global markets started Q3 with a bounce that continued into the summer. However, just as the holiday vibe ended, so faded the rally. By the end of September, markets were revisiting lows once again. Naturally, the persisting themes of aggressive QT and a super-strong USD continue to create major headwinds across asset classes. The U.K. was again back in focus as the new Chancellor of the Exchequer tried to test the waters with some non-traditional economic policies. The markets abruptly taught him a harsh lesson by simply looking at the data and reacting accordingly. The accompanying storyline seems not to matter in these volatile conditions.
Picking through the Eurex trading statistics, it’s no surprise the benchmark EURO STOXX 50® (including TRF) and STOXX® Europe 600 index products benefitted from a flight-to-liquidity. There was again a strong showing from our growing MSCI derivatives segment with high volumes executed in EM Asia, World, China, Japan, India and Taiwan, where, unfortunately, we may potentially witness the next military flashpoint.
Following a short summer break in the product launch schedule, September was busy again with the launch of FTSE 100 quarterly index dividend futures. The highly anticipated Porsche IPO from Volkswagen with the large retail placing initiative meant Eurex worked efficiently to ensure Porsche single stock options, futures and dividend futures were all available for trading the day immediately after shares were listed. This was a collective effort across several Eurex teams complemented by liquidity providers who streamed quotes into the order books so that Porsche derivatives went live successfully.
