Effective 3 November Eurex, the international derivatives market, will shorten the trading hours for equity options and equity index options.
Eurex stated that it is introducing the earlier close of trading in response to requests from many market participants.
The products are currently traded until 8:00 p.m. As of November 3, trading in German and U.S. equity options, EXTF options (Euro-denominated) as well as in options on the indices DAX, TecDAX, Nemax 50 and DJ Global Titans will end at 5:30 p.m. CET.
As of the same date, Finnish equity options and HEX25 index options will be traded until 6:30 p.m. CET. The changes are subject to the approval of the Eurex Exchange Council.
As of November 3, OTC block trades and vola trades for all equity-based option products can also be entered until 8:00 p.m. during the post-trading phase; up to now, such trades could only be entered during the trading phase.
For customers this will not result in any changes in the use of these functionalities.
On 3 November Eurex will also introduce a new OTC Trading Facility called "Exchange for Swaps". Swap market participants have shown increased interest in an OTC trading functionality comparable to Eurex's Basis Trade Facility.
The Exchange for Swaps Trading Facility (EFS) allows market participants the entry of off-exchange futures trades, based on the evidence of the corresponding OTC interest rate swap transaction.
All Eurex fixed income futures (Euro Schatz, Euro Bobl, Euro Bund, Euro Buxl Futures as well as CONF Future) are admissible for EFS trading.
Copyright hedgeweek 2003