The international derivatives exchange Eurex today announced the successful completion of the launch of the new Eurex 7.0 software release. Release 7.0 provides Eurex participants with addtional features and functionalities that improve options trading, expand basis trading of OTC-traded contracts and further increase the update rate of Eurex price information. The new funtionalities are available to market participants from November 1, after an initial successful software rollout on October 25.
The new Strategy Wizard is a functionality enhancing combination trading in options and supporing options volatility strategies. This new functionality helps traders to better manage their options exposure and to create tailormade options trading strategies. Key parameters of each strategy can be defined in line with the specific trading needs. The Strategy Wizard facilitates trading of complex combinations and spread trades, including straddles, butterflies and condors. Traders can create up to 45 predefined strategies.
Moreover, the new release will feature a margin offset for margin surpluses and margin shortfalls across different currencies, currently for all EUR and CHF-denominated products. This will reduce the margin requirements of Eurex participants and further improves the efficient use of capital.
In Release 7.0, Eurex will also extend its successful basis trade functionality to include a much broader range of eligible bonds and rename it to Exchange for Physicals (EFP). All fixed income debt securities denominated in Euro can be traded against Euro fixed-income futures and all fixed income debt securities denominated in CHF are eligible for trading against the CONF Future. This offers Eurex participants utmost flexibility in configuring their specific cash or futures transactions in combination with Eurex fixed-income futures. With the EFP-facility, transactions concluded off-exchange in fixed income futures against a simultaneous cash transaction in fixed income bonds can be executed via the exchange. The resulting positions in Eurex fixed income futures are then cleared by Eurex Clearing like futures traded on the exchange.
With the new Eurex Release 7.0 the quality of market data will be further improved. The broadcast streams used to communicate market data to trading participants’ systems have been substantially enhanced to increase the update rate of the Eurex system. These improvements are the result of the growth in trading activity and order book depth on Eurex. With the update rate increase, investors can react more quickly to market movements, making it more attractive to trade on Eurex.