FX derivatives

Product offering

Eurex Exchange offers FX Futures and Rolling Spot Futures that combine best-practice OTC market conventions with the transparency and minimized risk of exchange-traded, centrally cleared derivatives.

  • FX Futures are comparable to OTC FX forwards but have significantly lower counterparty credit risk (CCR) as financial obligations are guaranteed by a central counterparty (CCP).
  • FX Rolling Spot Futures are perpetual contracts that mimic the trading of an OTC FX spot, combined with a daily usage of tom-next (T/N) points at MID, to roll over the position.

Trade twelve currency pairs for an all-in (trading and clearing) member fee of 0.30 USD for on-book and 0.45 USD for off-book transactions (also payable in GBP, CHF and JPY). All Eurex FX contracts are 100,000 units of the base currency with a minimum price change at 1/10th of a pip (except for JPY pairs). Trade 23 hours, five days a week in Eurex T7® FX and optionally use your 360T OTC FX platform as a GUI to execute listed products.


Key Benefits

  • Integrated trading and clearing solution
  • Lowest possible execution costs
  • Efficient portfolio-based margining
  • Reliable default management process
  • Joint capabilities of Eurex, Eurex Clearing and 360T: Clients can choose the right FX liquidity pool, execution style and risk exposure for each trade.


Market models

The core market model at Eurex is the central limit order book (CLOB), where buy and sell orders are matched on a time allocation basis. In the CLOB model, customers can trade directly with dealers, dealers can trade with other dealers, and importantly, customers can trade directly with other customers, anonymously. Our on-book liquidity providers are available 23 hours, five days a week.
Additionally, Eurex offers block and exchange-for-physical (EFP) functionalities, where transactions are agreed bilaterally and submitted to the exchange. Also, our off-book liquidity providers are available 23 hours, five days a week.

  • A Block trade allows market participants to negotiate the price for a large number of FX futures contracts. This trade type is ideal for risk transference in size and to leverage bilateral trading relationships.
  • An EFP trade allows for a simultaneous purchase/sale of FX futures along with a sale/purchase of the underlying OTC FX instrument. This trade type is ideal for moving an OTC position into a cleared position, or vice-versa.


Regulatory obligations

According to the phases 5 and 6 of the uncleared margin rules (UMR) set by the Bank for International Settlements (BIS) and the Inter-national Organisation of Securities Commissions (IOSCO), covered entities belonging to a group whose Aggregate month-end Average Notional Amount (AANA) of non-centrally cleared derivatives for March, April, and May of the year exceeds EUR 50 and 8 billion respectively, will be required to post initial margin bilaterally with each of their counterparts.

It is important to note that:

  • All exchange-traded derivatives (ETD) are exempt from the AANA calculation;
  • Spot FX will be out of scope as they are not an OTC derivative contract according to the European Securities and Markets Authority (ESMA);
  • Physically-settled forwards and swaps, although exempt from the IM requirement, are included in the AANA calculation.


Market overview


Contacts

Joshua Hurley
Head of ETD FX Sales & Business Development
+44 2078627268
joshua.hurley@eurexclearing.com
Timothy Levandoski
ETD FX Sales Americas
+1 3125441056
timothy.levandoski@eurexclearing.com
Alessio Pietrobono
ETD Sales FX Italy, Iberia, France, Belgium & Luxemburg
+49 6921116879
alessio.pietrobono@eurex.com
Chris Soutar
ETD FX Sales UK, Ireland, Netherlands & Nordics
+44 2078627317
chris.soutar@eurex.com

Andreas Stillert
ETD FX Product Development
+49 6921117278
andreas.stillert@eurex.com

Matthias Kronenberger
ETD FX Sales Germany, Austria & Switzerland
+49 6921118719
matthias.kronenberger@eurexclearing.com