FX market update May 2023

The successful development of the Eurex FX offering continues in 2023, with total FX volumes reaching over 560,000 contracts in the first four months of 2023, thereby growing by +28% compared to the same period last year. Open interest averaged around 75,973 contracts since January, up +18% from 64,165 contracts last year. The average daily volume in FX futures on Eurex stands at 6,783 contracts by the end of April.

A new quarterly record was set in the quarterly volume of Daily Futures on USD/KRW listed in cooperation with the Korean exchange KRX. Trading in the USD/KRW product reached a record volume of 313,048 contracts between January and March. The product is listed on the established Eurex/KRX Link and enables trading in KRW-denominated derivatives products during European and US trading hours on Eurex.

The first quarter saw various participants becoming active in the Eurex FX market for the first time. Among others, DWS executed its first trade in EUR/USD futures as an exchange-for-physical (EFP) transaction. EFPs enable clients to establish an FX futures position while benefiting from the liquidity pools of OTC markets.

Sven Colditz, Senior Macro Trader at DWS: “We welcome the FX futures offering at Eurex as it provides us with greater choice in the execution of cleared FX instruments. The EFP trading model enables us to access OTC bank liquidity while using Eurex-listed derivative instruments. Together, this will complement the comprehensive FX service suite delivered to our clients.”

DWS is joining a growing number of firms that benefit from the FX value proposition on Eurex tailored to the buy-side community. When executing FX futures on Eurex, clients may benefit from reduced exchange fees, improved spreads in European currency pairs, and funding efficiencies through EUR collateralization.