Eurex US is expanding its range of US$-denominated fixed income derivatives.
On 1 February, Eurex US will introduce futures on 3-year U.S. Treasury Notes and options on the futures. This makes Eurex US the only exchange worldwide to offer these products.
“We continue to be the innovator in the US marketplace,” says Satish Nandapurkar, CEO of Eurex US. “The introduction of the 3-year US Treasury futures marks a new point on the Treasury yield curve. This product was established in response to strong client demand in the light of the regular issue policy of the US Treasury Department with respect to short-term US Treasury Notes. This will create new trading opportunities for the market.”
In addition, Eurex US will modify its 2-year US Treasury Note futures and options on 1 February. The contract value will be raised from US$ 200,000 to $1 million. This modification brings the contract in line with the trade sizes in the underlying cash bond market, ostensibly increasing the attractiveness of the product. The types of deliverable short-term US Treasury notes will be changed to allow for longer original maturity and wider delivery windows. A short-term note must have an original maturity not greater than 3 years and 3 months to be deliverable against the modified 2-year contract. The delivery window will be widened to 1 year and 6 months through 2 years and 3 months.
Eurex US opened its market for trading on 8 February 2004, and currently lists futures and options on 2-, 5- and 10-year US Treasury notes and on 30-year US Treasury bonds. Pending the approval of international regulatory authorities, Eurex US will expand its offering to include trading in futures and options on Euro-denominated interest rate and index products. These products will include the Bund future, one of the world’s most heavily traded futures contract, Bobl and Schatz futures, as well as products on the leading European indices DAX and DJ EURO STOXX 50.