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.
Market overview
FX Futures
Options on FX Futures
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.
