Eurex US is modifying its wholesale trading facility to stimulate trading activity in over-the-counter (OTC) wholesale trades on the exchange and to further increase the diversity of trading.
The company says wholesale transactions at Eurex US provide qualified participants the convenience of negotiating a large transaction at a single price with a designated and appropriate counterparty, the security of a trade cleared by The Clearing Corporation, and the implementation of exchange rules and regulations, leveraging the convenience and efficiency of electronic straight through processing and reporting via the Eurex system.
Effective August 16, new thresholds will apply for the minimum number of contracts required for a trade to qualify as a wholesale trade. For futures on the 2,5, and10 year Treasury Notes the minimum size will be 1000 contracts and for futures on the 30 year US Treasury Bonds the minimum size will be 500 contracts.
These changes will apply for trading during core US trading hours (07:20 am to 02:00 pm CST). Outside these hours, the minimum size for wholesale trades will be 250 contracts for all of the above products. These modifications are the result of extensive discussions with market participants to ensure that Eurex US wholesale trading practices best serve customers’ needs.
“With these wholesale trading modifications we are aiming to further diversify the source of open interest on Eurex US,” says Satish Nandapurkar, CEO of Eurex US. “Simultaneously with our successful revenue sharing initiative focusing on proprietary trading, we are diversifying our order flow by further enhancing institutional end user interest with a more flexible wholesale trading facility. These modifications will continue to connect the cash, exchange-traded derivative, and OTC space in the US Treasury markets globally.”