Your liquidity hub for cleared FX

• Integrated trading and clearing solution
• Lowest possible execution costs: trade all currency pairs for an all-in – i.e., trading and clearing – member fee of 0.30 USD for on-book and 0.45 USD for off-book transactions (also payable in product currency).
• 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.
• Available on the standard T7 trading system five days a week and via Eurex EnLight, our fully integrated RFQ platform.

Our principal market model, the central limit order book (CLOB) is the heart of Eurex’s operations. Here, buy and sell orders are matched on a time allocation basis. The CLOB model, facilitates direct transactions between customers and dealers, dealer-to-dealer trades, and, most importantly, lets customers trade anonymously with other customers directly. 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 upon bilaterally and submitted to the exchange. Our off-book liquidity providers are also available 23 hours, five days a week.

• A block trade allows market participants to negotiate the price for large transactions. 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.

• 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.

• Options on FX Futures are standardized monthly options that allow users to manage risk or gain exposure to FX volatility with the counterparty risk protection of a CCP.

According to the phases 5 and 6 of the uncleared margin rules (UMR) set by the Bank for International Settlements (BIS) and the International 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, are required to post initial margin bilaterally with 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.