News Center
May 24, 2013

Eurex

Eurex to roll-out its EURIBOR Futures initiative

Re-launch effective 1 June 2013

The international derivatives marketplace Eurex Exchange announced today that
it will start a new initiative to increase the attractiveness of its short-term
interest rate derivatives segment by offering new trading and market making
incentives for its Three-Month Euribor Futures. These measures will become
effective on 1 June 2013. Euribor Futures have already been listed on Eurex
Exchange for several years.

The major elements of the initiative have been discussed with relevant market
participants, who approached Eurex earlier this year. As part of the
initiative, Eurex will offer a completely new Market Making Scheme starting on
1 June, which will replace the current scheme and will initially run until the
end of 2013. Additionally, to increase the liquidity and gain customer flow,
fee rebates for client orders will be offered relative to open interest held.

As part of the roll-out of its new trading architecture, Eurex Exchange offers
new short-term interest rate functionalities which support the initiative, e.g.
use of a full spread matrix as well as a time-pro-rata matching algorithm. This
is the first time Eurex is able to offer such functionalities which are key to
trading short term interest rate contracts.

“With our new initiative, we aim to build up a liquid and comprehensive product
suite in the whole Euro denominated yield curve,” said Michael Peters, member
of the Eurex Executive Board. Together with the successfully launched futures
contracts based on French (OAT) and Italian (BTP) government bonds, Euribor
futures complement the highly liquid long-term interest rate contracts based on
German government bonds (e.g. Euro-Bund-, Euro-Bobl- and Euro-Schatz futures).

The new initiative is also a reflection of the upcoming regulatory capital
requirements. Eurex’s new portfolio based risk management approach will enable
the realization of capital efficiencies between the full suite of interest rate
contracts listed on Eurex Exchange and interest rate swap transactions cleared
through Eurex Clearing.

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