Eurex will introduce foreign exchange (FX) futures on 23 September 2005, extending the Eurex global liquidity network into a new asset class.
"FX is one of the fastest growing markets in the world, and it is the only major financial asset class where Eurex has not historically been represented," said Rudolf Ferscha, CEO of Eurex. "By entering the FX market Eurex will further expand its portfolio of financial derivative products. Structural changes in the global FX markets have further driven use of FX products and increased demand for the transparency and reduced counterparty risk offered by on exchange markets. Listing FX contracts on Eurex US will offer the global marketplace the opportunity to trade FX on a liquid and transparent market with a highly effective distribution network."
Contracts will initially be listed on six major USD currency pairs (Euro, Australian Dollar, British Pound, Yen, Swiss Franc, Canadian Dollar) and four cross currency pairs (EuroYen, SterlingYen, EuroSwiss, EuroSterling).
The contracts will be traded on Eurex US, leveraging the 23 hour trading platform and US regulatory environment for FX trading. Contracts will be cleared by The Clearing Corporation (CCorp), using the Concero clearing services platform.
"As part of the Eurex Global Liquidity Network, the Eurex US exchange and technology platform are uniquely positioned to meet the worldwide demand for FX futures contracts," said Satish Nandapurkar, CEO of Eurex US. "By making use of Eurex US' existing 23 hour trading platform, we are able to satisfy customers' immediate demand for additional liquidity and significantly lower their cost of execution."
Eurex US will waive all trading fees for FX contracts for all market participants for the duration of 2005. FX contracts on Eurex US will be supported by a selected network of banks and market making firms, ensuring liquidity from launch.