Eurex Exchange, the international derivatives market of Deutsche Börse Group, is to extend its product range by introducing foreign exchange (FX) derivatives as a new asset class.
Effective 7 July 2014, exchange-traded currency futures and options will be offered on the following main currency pairs: EUR/USD, EUR/GBP, EUR/CHF, GBP/USD, GBP/CHF and USD/CHF.
“With this step we are making a further important contribution to increasing the transparency and safety of financial markets. We have tailored our products to market practices and want to provide efficient and effective access to our marketplace,” says Mehtap Dinc, member of the Eurex executive board.
Eurex Clearing will offer physical settlement of contracts for these products, i.e. delivery of the respective currencies via the international currency settlement system Continuous Linked Settlement, which is established in the FX market.
“Our FX offering will have a unique differentiation to other offerings. Eurex Clearing as central counterparty of all trades will remain the counterparty until the final settlement of trades, providing full safety for both sides of the transaction,” says Thomas Book, CEO of Eurex Clearing.
The FX futures will be tradable from 8:00 to 22:00 CET and the FX options from 8:00 to 19:30 CET. To support the launch, Eurex Exchange is offering special incentive programmes for the listed FX futures and options for market makers in order to provide sufficient order book liquidity.