International derivatives market Eurex broke the one billion contract barrier on Wednesday, when the one billionth contract in a single year was traded on the exchange. Trading volumes in 2003 to date exceed the 2002 total of 801 million contracts by more than 20 per cent and have more than doubled since 2000 (454 million contracts).
Eurex turnover generated by US and UK based Eurex customers has reached 565 million contracts or 57 percent of worldwide turnover, up from approximately 22 percent in 1998, the year DTB and SOFFEX merged to form Eurex, the first cross-border exchange.
“Our customers and business partners internationally have helped us in building the most liquid marketplace in the world,” says Rudolf Ferscha, CEO of Eurex. “Eurex features the deepest order books and the tightest spreads worldwide. We owe this to the continued support of our customers. Through the Global Clearing Link with The Clearing Corporation in Chicago, we will jointly create even more value for our customers and further stimulate growth throughout the derivatives industry.”
With the launch of Eurex US, The Clearing Corporation (CCorp) will provide clearing services for USD- denominated products. The Global Clearing Link will provide customers worldwide with additional opportunities: participants will be able to carry at CCorp Euro-denominated products executed on Eurex and Eurex Clearing customers will be able to carry at Eurex Clearing USD-denominated products executed on Eurex US. For the first time customers will be able to leverage their existing infrastructures to access both U.S. Dollar- and Euro- denominated products through the global clearing partnership. Customers will benefit from collateral pooling and margin offsets that will lead to potential margin savings in excess of 2.5 billion USD. These savings will result from the combined effect of an improved margining system and margin offsets.
Eurex also aims to create new opportunities for growth in the industry with the launch of its Chicago-based exchange, Eurex US. Eurex US will create new opportunities in trading and clearing for Eurex customers worldwide and accelerate growth in the entire industry. “The level of support for Eurex US and the Global Clearing Link we have received from market participants and industry associations around the world highlights that the time is right for a truly global liquidity network,” says Ferscha.