Eurex

from Wikipedia, the free encyclopedia
Eurex Zurich AG

logo
legal form Corporation
founding 1998
Seat Eschborn , Germany (Eurex Frankfurt AG)
management Thomas Book, Chief Executive Officer (CEO)
Branch Equity, equity index, interest rate derivatives [u. a.], clearing services
Website www.eurexchange.com

The European Exchange shortly Eurex is one of the world's largest futures exchange for financial derivatives ( futures and options ), in 1998 from the merger of DTB (German derivatives exchange) and the SWX Swiss Exchange belonging SOFFEX (Swiss Options and Financial Futures Exchange) emerged. The Eurex brand is protected.

history

At the end of 1996, Deutsche Börse AG and SWX Swiss Exchange signed a letter of intent to create a joint trading and clearing platform for their derivative products. On September 4, 1997, the creation of such a platform was officially announced in Bürgenstock, Switzerland . In the course of 1998 the merger between the Deutsche Terminbörse (DTB) and the Swiss Options and Financial Futures Exchange (SOFFEX) to form the European Exchange (Eurex) was implemented technically and organizationally. Since September 1998, the members of both exchanges have been trading on the common trading and clearing platform. This means that the two exchanges are among the first to have given access to derivatives markets via electronic trading platforms.

Until 2012, the parent company of Eurex Frankfurt AG was Eurex Zürich AG, which held 100% of the shares and in which Deutsche Börse AG and the SWX Swiss Exchange held equal shares. Eurex Frankfurt AG's subsidiaries are US Exchange Holdings, Inc., Eurex Clearing AG ( ECAG ), Eurex Repo GmbH and Eurex Bonds GmbH. Eurex Deutschland AG is the part of Eurex under public law. Eurex AG has been 100% owned by Deutsche Börse Group since 2012.

The first products to be launched at Eurex in addition to the products taken over from DTB and SOFFEX include options on Euro-Schatz Futures , three-month EURIBOR futures, Euro-Buxl futures and futures on the EURO STOXX 50 ( Index future ). In the 1998 financial year, just over 248 million contracts were traded by a total of 313 registered members.

A graphical user interface for trading at Eurex has been available to market participants since 1999 ; in the course of the cooperation between Eurex and the Helsinki Exchange Group Ltd. (HEX) new products on Scandinavian indices and individual stocks are introduced in September 1999 . In 1999, Eurex recorded significant growth in membership (to over 400) and volume (around 380 million contracts traded in total) compared to the previous year.

Graduated over the year 2000, more and more options on individual stocks in the EURO STOXX 50 Index were introduced. The range of futures and options on sector indices of the EURO STOXX and STOXX Europe 600 was also subsequently expanded, as well as options on the most liquid American individual stocks. In addition to trading with futures and options Eurex built another mainstay in OTC trading and clearing on: together with institutional market participants, Eurex operates from October 2000, the two platforms Eurex Bonds and Eurex Repo for trading in government bonds or the repo trading with government bonds and Jumbo Pfandbriefe .

The large number of new products and the constant improvement in trading and clearing conditions mean that more than 674 million contracts were traded on Eurex in 2001 .

In November 2002 trading in futures and options on exchange-traded funds (ETF) was introduced. Due to the expanded range of sector products and options for more and more individual stocks from Europe and the USA, over 800 million contracts were traded in 2002.

At the beginning of 2003, Eurex expanded its interest rate products to include futures on the EONIA (European Overnight Index Average) interest rate . The contract for the joint operation of Eurex between Deutsche Börse AG and the SWX Swiss Exchange was extended to 2014 ahead of schedule. At the end of 2003, the number of contracts traded was one billion, for a total of 1.014 billion.

In February 2004, Eurex launched the derivatives exchange Eurex US in Chicago , thereby extending its business model to the trading and clearing of USD-denominated products in the USA . In 2003, 1.014 billion contracts were traded.

In the spring of 2006 there was a change in the post of CEO; Andreas Preuss took over the business of his predecessor Rudolf Ferscha. So-called weekly options have been added to the product range; the area of ​​equity index derivatives has thus also been expanded to include short-term maturities. The range of equity derivatives has also been expanded - with futures and options on underlyings from the mid-cap indices MDAX and SMI MID as well as on Spanish and Swedish underlyings. Equity index options on the MDAX and SMIM were also introduced. The first Eurex connection for a member was also completed in Singapore. On October 1, 2006, the Man Group took over 70% of Eurex US and continues to operate it under the name USFE (US Futures Exchange). At the end of 2006, the trading volume was 1.53 billion contracts traded.

Trading volume

  • 1998: 248 million contracts through 313 registered members
  • 1999: 380 million contracts through over 400 registered members
  • 2001: 674 million contracts
  • 2002: 801 million contracts
  • 2003: 1.014 billion contracts
  • 2004: 1.066 billion contracts
  • 2005: 1.25 billion contracts
  • 2006: 1.53 billion contracts
  • 2007: 1.9 billion contracts
  • 2008: 2.165 billion contracts
  • 2009: 1.7 billion contracts
  • 2010: 1.9 billion contracts
  • 2011: 2.04 billion contracts
  • 2012: 1.66 billion contracts
  • 2013: 2.2 billion contracts
  • 2014: 2.1 billion contracts
  • 2015: 2.3 billion contracts

Products

Eurex offers a wide range of equity , equity index , interest rate and volatility derivatives as well as derivatives on exchange-traded funds .

Equity derivatives

In the stock options segment, investors at Eurex can trade almost 200 stock options on American, German, Finnish, French, Italian, Dutch, Swiss, Swedish and Spanish base stocks, including stock options on 49 of the 50 stocks in the EURO STOXX 50 index. Gradually, Eurex is also expanding the number of futures on stocks (single stock futures). Futures can now also be traded on a total of around 370 individual stocks.

Equity index derivatives

In the area of equity index derivatives, the product range includes futures and options on the leading international blue chip indices, European midcap segments and various industry indices . In detail these are:

  • Futures and options on the EURO STOXX 50 index
  • Futures and Options on the STOXX Europe 50 Index
  • Futures and Options on the STOXX Europe 600 Index
  • Futures and options on the STOXX Europe Mid 200 Index
  • Futures and Options on the Dow Jones Global Titans 50 Index
  • Futures and Options on the Dow Jones Italy Titans 30 Index
  • Futures and options on the DAX, MDAX and TecDAX
  • Futures and options on the SMI and SMIM
  • Weekly options on the EURO STOXX 50 Index, DAX and SMI
  • Futures and Options on the OMX Helsinki 25 Index
  • Futures and options on EURO STOXX Sector indices
  • Futures and Options on STOXX Europe 600 Sector Indices

Volatility index derivatives

The latest additions are volatility futures on the volatility indices of Deutsche Börse AG (VDAX-NEW), SWX Swiss Exchange (VSMI) and STOXX Ltd. (VSTOXX). For the first time, market participants can hedge volatility fluctuations on the German, Swiss and European stock markets with an exchange-traded family of futures.

  • VDAX NEW futures
  • VSMI futures
  • VSTOXX futures

Derivatives on Exchange Traded Funds

In November 2002, trading in futures and options on exchange-traded funds (ETF) was introduced at Eurex . The corresponding base values ​​are:

  • DAX EX
  • EURO STOXX 50 EX
  • iShares EURO STOXX 50 EX
  • XMTCH on SMI

Interest rate derivatives

The interest rate derivatives cover the German interest rate curve with a term of up to 35 years and the Swiss interest rate curve with a term of 8 to 13 years:

  • Euro-Schatz Futures (underlying value of federal treasury notes with a remaining term between 1.75 and 2.25 years)
  • Euro-Bobl-Futures (base value of federal bonds with a remaining term between 4.5 and 5.5 years)
  • Euro-Bund-Futures (underlying German government bonds with a remaining term of between 8.5 and 10.5 years)
  • Euro-Buxl-Futures (underlying German government bonds with a remaining term between 24 and 35 years)
  • CONF futures (underlying bonds of the Swiss Confederation)

Options can also be traded on Euro-Schatz, Euro-Bobl and Euro-Bund Futures.

Further products in the area of ​​interest rate derivatives are the following money market derivatives:

  • One-month EONIA futures (underlying EONIA interest rate)
  • Three-Month EURIBOR Futures (Underlying European Interbank Offered Rate)
  • Options on three-month EURIBOR futures

Interest rate derivatives account for around half of the trading volume on Eurex. With around one million contracts traded per day, the Euro-Bund-Futures is the product with the highest turnover at Eurex.

Energy derivatives

Since December 5, 2007, Eurex has been offering trading in energy derivatives in the area of ​​CO 2 futures in cooperation with the European Energy Exchange AG (EEX) . The two clearing houses of Eurex and EEX also cooperate in this regard. The contracts are physically delivered by European Commodity Clearing AG (ECC).

Eurex Bonds and Eurex Repo

The Eurex business model extends not only to forward transactions, but also to over-the-counter cash market transactions.

Eurex Bonds

The Eurex Bonds GmbH was founded in 2000 as a joint initiative of Eurex Frankfurt AG and leading financial institutions launched. It provides an electronic platform for over-the-counter trading and clearing of the following financial instruments:

  • All fixed-income bonds of the Federal Republic of Germany ( federal bonds , federal bonds and federal treasury notes )
  • Interest-free Treasury Notes ( Bubills ) of the Federal Republic of Germany
  • European government bonds
  • Bonds from supranational institutions and government guaranteed bonds
  • Jumbo Pfandbriefe from German issuers , fixed-income bonds from the German federal states and so-called slimbos
  • Covered bonds from various European issuers
  • Selected European corporate bonds
  • Base instruments for all bonds of the Federal Republic of Germany deliverable in the Fixed Income Futures (Euro-Schatz, Euro-Bobl and Euro-Bund Futures) and base instruments for selected further fixed-income bonds of the Federal Republic of Germany.

By connecting the Eurex Bonds trading platform to the clearing system of Eurex Clearing AG, there is a direct connection between the cash and derivatives markets, through which the electronic trading of the bonds of the Federal Republic of Germany and the base securities for all bonds deliverable in the fixed income derivatives becomes possible in a central order book .

Eurex Repo

At Eurex Repo, market participants can trade a wide range of repurchase agreements (repos), including for German and Austrian government bonds, Jumbo Pfandbriefe, state bonds, bonds from the KfW banking group and European investment bank bonds. Repos combine the sale of securities with the repurchase of similar securities on a forward basis.

Eurex Repo operates on two different markets, the repo market in euros and the repo market in Swiss francs. The market participants have access to reliable trading, clearing and settlement systems for the European and Swiss repo markets.

The repo market in euros gives European financial service providers access to refinancing with European securities. Eurex Repo gives institutional investors the opportunity to optimize their liquidity management in various standardized collateral segments .

Over one hundred international banks manage their liquidity on the Swiss franc repo market . Market participants can carry out their funding and collateral management directly on the Swiss interbank market and by participating in the auctions of the Swiss National Bank (SNB), which usually take place on a daily basis .

In repo transactions between two institutional investors, Eurex Clearing AG acts as the central counterparty and thus guarantees the market participants that the performance obligations entered into will actually be fulfilled.

In principle, Eurex Bonds and Eurex Repo are open to all interested credit institutions and financial service providers. The companies must be subject to financial market supervision in their respective home state. Trading on Eurex Bonds and Eurex Repo is currently not possible for private investors as it is purely interbank trading and the contract size is in the multi-digit million range.

Special occurrences

On February 22, 2016, exchange trading after M1 blow-off in the instruments FDAX, FDXM, FESX, BUND, SCHATZ, BOBL and BUXL was stopped by market supervision for European futures trading in the EUREX system T7 from 11:09 am to 12:50 pm Clock stopped.

Web links

Individual evidence

  1. ↑ Trademark register
  2. ↑ In 2013, the Eurex Group traded around 2.2 billion contracts. Eurex Frankfurt AG, January 2, 2014, accessed on June 16, 2018 .
  3. ↑ Eurex Group traded around 2.1 billion contracts in 2014. Eurex Frankfurt AG, January 2, 2015, accessed on June 16, 2018 .
  4. ↑ Total trading volume and December 2015. Eurex Frankfurt AG, January 4, 2016, accessed on November 3, 2018 .
  5. ↑ Emergency Information Eurex Market Supervision ( Memento from March 2, 2016 in the Internet Archive )
  6. ↑ Michael Brächer: Computer breakdown: derivatives exchange suspends trading. In: Handelsblatt . February 22, 2016. Retrieved July 25, 2016 .