Eurex to Introduce FX Derivatives

From October 2013, Eurex will introduce currency derivatives (FX contracts) as exchange-listed products.

Eurex Exchange will initially offer futures and options on the following currency pairs: EUR/USD, EUR/GBP, EUR/CHF, GBP/USD, GBP/CHF and USD/CHF. The majority of over-the-counter, daily FX derivatives trading takes place in these currency pairs.

“With this step, we again contribute to increasing the transparency and safety of financial markets. The large majority of FX derivatives are currently traded off-exchange. With our listed contracts we are offering an alternative in which we bring the advantages of exchange trading, including clearing, to a market that has so far been organized predominantly bilaterally,” said Peter Reitz, member of the Eurex Executive Board. “We have tailored our offering to current market practices and want to provide efficient and effective access to a regulated and safe market.”

In a related development, Moscow Exchange and Eurex have signed a cooperation agreement for the trading of foreign exchange (FX) derivatives.

Eurex Exchange will launch Euro/Russian Rouble and U.S. Dollar/Russian Rouble FX futures on its trading system in Q4 2013. Both partners will also jointly promote the launch of these two FX futures.

“This new cooperation fits perfectly into our goal to constantly expand our product offering as it will complement our planned FX product suite”, said Andreas Preuss, deputy CEO of Deutsche Börse and CEO of Eurex.

According to the agreement, Eurex’s product suite will be complemented with cash-settled futures for both Euro/Russian Rouble and U.S. Dollar/Russian Rouble currency pairs in Q4 2013. Upon expiry, Eurex’s Rouble futures will be settled using settlement prices provided by Moscow Exchange.