Source: Deutsche Börse
Eurex, the world's largest derivatives exchange, today announced that a total of 20 market makers have signed on to provide liquidity when trading commences in foreign exchange (FX) futures on September 23, 2005, on Eurex US.
An additional eight firms have agreed to act as Early Volume Adopters (EVAs), providing a consistent amount of volume each day.
Eurex US market makers include global banks and proprietary trading firms with significant experience providing streaming two-way currency prices in foreign exchange markets.
"We have established significant backing from market makers and we are delighted that this emerging asset class is already receiving such strong industry support," said Satish Nandapurkar, CEO of Eurex US. "These firms recognize that there is an opportunity to trade exchange-traded FX futures on a liquid and transparent market at a cost comparable to the OTC market."
Eurex's move into FX futures marks the extension of the exchange's global liquidity network into a new asset class. Initially, contracts in the six major USD currency pairs (Euro, Australian Dollar, British Pound (Sterling), Yen, Swiss Franc, Canadian Dollar) and four cross currency pairs (Euro/Yen, Sterling/Yen, Euro/Swiss, Euro/Sterling) will be offered.
Contracts are listed on Eurex US, leveraging the exchange's reliable 23-hour trading platform, global access points, and liquid, transparent market with a highly effective distribution network. In addition to open and equal access, anonymity and low transaction fees, traders will also benefit from the U.S. regulatory environment and 60/40 tax treatment.
Contracts will be cleared by The Clearing Corporation (CCorp).
Market makers are also eligible to participate in the FX revenue sharing program - Eurex US has earmarked 40 percent of its FX revenues for this initiative. In addition, exchange fees are waived for all market participants through the end of 2005 with extended waivers for market makers.