Deutsche Borse says Eurex, the international derivatives market it owns with Swiss Exchanges, has substantially increased its market share in the trading of Dutch equity options. “In some of these options, the volume traded at Eurex is higher and the price quality better than in the home market,” says the German trading platform.
Eurex attributes its success Due to the introduction of market-making and arrange of new Dutch equity options on July 1, since when the Eurex share of Dutch equity option contracts increased from 3 per cent to 15 percent within a week. Eurex already accounts for up to 59 percent of the trading in Unilever equity options and as much as 55 percent in Royal Dutch Shell options. In options on ABN-Amro and Philips, Eurex has increased its share of the market to 20 percent and 30 percent, respectively.
Since July 1, market makers have continuously quoted prices in their order book. The maximum term to expiration for Dutch equity options was extended to 60 months, the minimum price movement (tick size) of one eurocent still applies, which offers participants the most efficient hedging possibilities in trading. Moreover, on July 1 Eurex also launched 14 new equity options on Dutch shares. With the launch of these new options, a total of 23 Dutch equity options are now tradable at Eurex. “This makes Eurex the only exchange on which contracts in all of the Dutch blue chips can be traded electronically,” says Eurex.