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Sep 28, 2017

Eurex

Eurex to launch BTP options

Extension of BTP product suite as of 2 October

Eurex, one of the world’s leading derivatives exchanges and part of Deutsche Börse Group, will introduce Options on Euro-BTP Futures as of 2 October 2017. This euro denominated product provides market participants with an efficient and cost-effective listed instrument that extends hedging opportunities in the Italian interest rate market.

At market launch, Eurex will offer a special market-making program to incentivize order book liquidity. Market makers will provide liquidity from day one of trading. The minimum quote size for market makers on-screen and the minimum block size is 100 lots.

Currently, the BTP product suite comprises Euro-BTP futures (launched September 2009), Short-Term Euro-BTP Futures (launched in October 2010) and Mid-Term Euro-BTP Futures (launched in September 2011). Together, all three products have traded more than 135 million contracts since their inception. Trading volumes and open interest have steadily risen; currently ADV is around 120,000 contracts and open interest stands at 370,000. The Italian government bond futures are often used as proxy for peripheral European bond exposure.

“By adding options on BTP futures, Eurex is now offering a complete suite of BTP derivatives which support our market participants to navigate through volatile times. Especially buy-side clients have expressed their interest in listed options,” explained Mehtap Dinc, member of the Eurex Executive Board, responsible for Product Development.

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