Eurex US has intensified the price war in the US futures and options markets with a new pricing structure for U.S. Treasury futures and options on futures. The new pricing, effective 1 January 2005, aims to further reinforce Eurex US as the low-cost provider in U.S. dollar products and further promote electronic order book trading.
Under the new structure, transaction fees for U.S. Treasury products traded on Eurex US will be priced at U.S. 5 cents per side. All trades executed in the order book are eligible for these fees. Over-The-Counter (OTC) trades will be subject to a surcharge of 45 cents per side.
“After consulting with our customers, we have restructured our fee model to best reflect their request for simple, straightforward pricing,” says Satish Nandapurkar, CEO of Eurex US. “We have seen consistent growth in liquidity on the screen, and with this new pricing model we aim to reward our customers for their support. Eurex US continues to be the most competitively priced U.S. futures and options exchange”.
Trading volumes and open interest at Eurex US continue to grow, with trading volume setting a new record in November of 1.15 million contracts. Average daily trading volume rose to over 57,000 contracts, up 28 percent from 45,000 contracts in the previous month. Open interest surged to a record level of 79,864 on December 1. With the introduction of Phase Two of the Global Clearing Link, Eurex US will expand its offering to include futures and options on Euro-denominated interest rate and index products. These products will include benchmark European products such as the fixed-income product suite Bund, Bobl and Schatz as well as products on the leading European indices DAX and DJ Euro STOXX 50.