Strong volumes across Eurex’s equity index benchmark products
For those who managed to take a well-earned holiday in August, you probably still spent some of that relaxation time discussing or contemplating the many challenges we face today. No amount of sun, sand and sea can deflect the real-world state; the protracted war in Ukraine, droughts in several parts of the globe, devasting floods in others, burning forests in the heatwave and sharply rising energy costs. The markets mirrored this gloomy outlook, with both bond and equity benchmarks performing negatively as an attempted mid-month rally rapidly faltered.
Given this backdrop, derivatives usage remained robust and saw strong volumes across Eurex’s index benchmarks. The volume growth was most interesting in our FTSE segment, where market participants increasingly embrace the FTSE 100 TRF to achieve U.K. equity market exposure without the need to reference the increasingly volatile GBP short-term interest rate futures strip market that impacts forward pricing. Despite the recent media debate around the relative merits of ESG investing, we saw new trading activity in our EURO STOXX 50® and DAX ESG weekly index options that demonstrate interest is still present. Open interest levels in our MSCI derivatives segment approached highs again with good activity in EM Asia, World, ACWI futures and EM options compared to the same month last year. Sector index futures were also relatively active, with the highest volumes in Banks, Oil & Gas, Autos and Telcos.
With the late Q3 and early Q4 periods being statistically weak for equity markets, central banks will be put under immense political pressure to either justify their determination to stay on a tightening policy path and defeat inflation or bow to the negative consumer wealth impacts and soften this stance accordingly. Regardless of the future route, we can expect that Eurex’s deep and liquid derivatives markets will be needed to facilitate further hedging demand.
Market Status ⓘ
The market status window is an indication regarding the current technical availability of the trading system. It indicates whether news board messages regarding current technical issues of the trading system have been published or will be published shortly.
Please find further information about incident handling in the Emergency Playbook published on the Eurex webpage under Support --> Emergencies and safeguards. Detailed information about incident communication, market re-opening procedures and best practices for order and trade reconciliation can be found in the chapters 4.2, 4.3 and 4.5, respectively. Concrete information for the respective incident will be published during the incident via newsboard message.
We strongly recommend not to take any decisions based on the indications in the market status window but to always check the production news board for comprehensive information on an incident.
An instant update of the Market Status requires an enabled up-to date Java™ version within the browser.