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Jul 07, 2011

Eurex

Eurex further expands its Italian government bonds derivatives offering

Medium-term interest rate contract to launch on 19 September 2011/New contract complements the already listed Euro BTP Future and Short-Term Euro BTP Future

The international derivatives exchange Eurex announced today that it will launch a new interest rate contract on 19 September 2011. The Mid-Term Euro BTP Future is based on notional medium-term bonds issued by the Republic of Italy (Buoni del Tesoro Poliennali – BTP). The new contract will complement Eurex's interest rate derivatives offering for all A and AA-rated European government bonds as well as for other interest rate instruments and will serve as an ideal hedging instrument for this market segment.

"The success of our two listed BTP futures increased the demand among our customers for the yield curve to be completed. Our new BTP future covers medium-range maturities, creating new, additional trading opportunities," said Peter Reitz, member of the Eurex Executive Board.

The Mid-Term Euro BTP Future will be based on deliverable bonds with a residual maturity of 4.5 to 6 years and an original maturity of not more than 16 years; the notional coupon will be 6 percent and the contract value will be 100,000 euros, as for the existing futures contracts. The minimum tick size will be fixed at 0.01 percent (10 euros per tick) in line with the tick sizes of the other BTP, Bund and Bobl futures. Trading hours will be from 8 a.m. to 7 p.m. CET.

Eurex will also be offering a Market-Making program. Various banks have already shown an interest in market-making to provide sufficient liquidity from the outset.

Eurex has been offering trading in the long-term Euro BTP Future (FBTP) since September 2009, the Short-Term Euro BTP Future (FBTS) has been listed since October 2010. Since their introduction, more than 3 million contracts have been traded in both futures together.

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