Eurex US gets off to a strong start

Eurex US gets off to a strong start

Derivatives exchange Eurex says its new Chicago-based screen-trading venture captured about four per cent in volume of US T-bond and note futures on its first day of operation.

Eurex US on Monday traded almost 39,500 contracts in two, five and 10-year Treasury bond and note futures, with a spread similar to those achieved at the 157-year old Chicago Board of Trade.

Eurex CEO Rudolf Ferscha hailed the opening as "the most liquid exchange launch ever."

Eurex US has signed 40 full-time market makers to supply bid and ask quotes on Treasury futures products continuously during core market hours. Over 100 customers with over 1800 traders were connected to the exchange on the first day of trading.

The Swiss-German derivatives exchange has responded to the temporary cut in trading fees announced last week by Cbot by waiving charges for market makers for up two years and setting fees for other users lower than originally planned.

Pending approval of international regulatory authorities, Eurex US will expand its offerings to include trading in futures and options on Euro-denominated interest rate products as well as futures on the European DAX and Dow Jones Euro STOXX 50 SM stock indexes.

The Chicago-based Clearing Corporation (CCorp) is acting as Eurex US' clearing organisation in the US. In a next step, and pending approval of the Commodity Futures Trading Commission, a transatlantic clearing link will be established between CCorp and its European equivalent Eurex Clearing resulting in significant cost savings for customers trading internationally.

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