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Eurex sees further growth in demand for ETDs in 2017

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On the back of increasing demand for its highly liquid benchmark product range in 2016, Eurex is predicting further growth in the exchange traded derivatives (ETD) market in 2017.

ETDs are efficient hedging instruments, sharing the same benefits as OTC contracts coupled with the advantages of deep liquidity and transparent trading on a regulated venue such as Eurex.
 
In addition Eurex believes that further upcoming regulatory changes will continue to strengthen the benefits of the ETD market in 2017.
 
During 2016, a series of events provoked high volatility in underlying markets and spurred strong demand for Eurex products. Throughout the year, Eurex ensured efficient price discovery and hedging opportunities to help clients cope with market turbulence. Over the course of 2016, 1,727,891,584 contracts were traded, a plus of 3 per cent compared to 2015.
 
Euro STOXX 50 Index Futures (374,452,071) experienced the highest turnover, followed by Euro STOXX 50 Index Options (286,250,191 contracts) and Euro-Bund Futures (130,699,951 contracts). The banking sector also experienced strong volumes. Market participants relied on EURO STOXX Banks Futures (42,645,554 contracts), to hedge their exposures.
 
“The introduction of margin requirements for bilateral instruments will make ETDs more attractive”, says Thomas Book, CEO of Eurex and head of derivatives markets trading at Deutsche Börse Group. “We will further develop our range of standardised exchange traded and cleared products, addressing the needs of our clients and helping them cope with regulatory change.”
 
The latest examples are Eurex Total Return Futures, launched in December 2016, which offer returns analogous to Equity Index Total Return Swaps, but with higher capital efficiency compared to current bilateral instruments.

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