Market update – Another one for the record books
FX Futures at Eurex hit another record quarter with more than 410,000 contracts traded in Q3. This follows up on previous record quarters established in Q2 (392k contracts) and Q1 (374k contracts) this year. The open interest remains stable at ca. 77k contracts being held predominantly in EUR/USD and related Euro-pairs.
Participants are increasingly combining the liquidity of OTC FX markets with the benefits of listed derivatives by transacting in exchange-for-physicals (EFPs). EFPs are the simultaneous transaction of an OTC FX instrument and an FX Future. This swap-like transaction enables market participants to convert OTC positions into an FX Futures position (and vice versa). During the September roll, Eurex registered a single EFP trade for 57,000 FX Futures contracts with a nominal value of €5.7 billion.
New back-to-back records were also achieved in Daily USD/KRW Futures (available on the Eurex/KRX Link), with 75k and 77k contracts traded in August and September, respectively. Since the launch of Daily USD/KRW Futures in July 2021, more than 725,000 contracts have been traded. The Link enables participants to trade selected core products of the Korea Exchange (KRX) on Eurex after the markets in Asia close.
Go to the Listed FX derivatives website: Listed FX derivatives (eurex.com)
Eurex expands FX Futures offering to EM currencies
Trade and clear our new FX Futures contracts covering Brazilian Real (BRL), Mexican Pesos (MXN) and South African Rand (ZAR). The contracts are cash-settled in U.S. dollars or euros. Clearing Members can use their existing infrastructure and do not need to open new cash accounts in these EM currencies.
Morgan Stanley begins trading listed FX at Eurex
Morgan Stanley has entered Eurex’s listed FX business, joining a growing number of market participants at Eurex moving their business to the exchange or combining OTC and exchange-listed FX trading by using EFPs.
FX Futures were among the most discussed topics at this year’s TradeTech FX conference in Amsterdam. An increasing number of banks see FX Futures as an ideal tool to ensure best prices for their clients by mitigating the impact of uncleared margin rules and the SA-CCR capital regime on funding and capital cost.
Jens Quiram, Global Co-Head of FIC Derivatives & Repo Sales at Eurex, joined the panel discussion with Transtrends’s Marc Putter, Groupama’s Emmanuel Hurault, and Fulcrum’s Patrick Forde on “The Growth of FX Futures” to speak about the opportunities of FX Futures as additional liquidity pool and agnostic price source.
Meet us at FX Markets USA
Eurex’s Lee Bartholomew will participate in the panel discussion on 20 October in New York, “The state of macro - big picture impacts on overall markets.”
We are looking forward to meeting you at FX Markets USA.
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