Eurex has expanded its FX futures coverage to now include Scandinavian currencies, the most heavily traded European after GBP, CHF and EUR.
Seven new FX futures on Scandinavian currencies have started trading on the exchange, including EUR/NOK, EUR/SEK, EUR/DKK, USD/NOK, USD/SEK, USD/DKK, NOK/SEK.
In addition, a liquidity scheme allows for tight pricing and competitive liquidity.
“Gaining exposure to Swedish, Danish and Norwegian currencies allows clients to hedge positions and seize unique trading opportunities,” said Maximilian Dannheimer, head of FX ETD sales at Eurex.
“The launch of Scandinavian currency futures is a natural evolution to offer transparency and minimise risk by exchange-traded, centrally cleared derivatives in G10 currencies.”
Eurex FX Futures can be compared to OTC FX forwards, however, they have considerably lower counterparty credit risk (CCR) seeing as financial obligations are guaranteed by Eurex Clearing as central counterparty (CCP).
In addition, Eurex FX futures are physically settled through CLS, which caters to traders that want to take their contracts to expiration.
Following the expansion, Eurex now offers a total of 19 currency pairs including seven pairs on Scandinavian currencies.
According to Eurex, all of its FX contracts are 100,000 units (except for NOK/SEK pair) of the base currency with a minimum price change at 1/10th of a pip.
The standard T7 trading system or Duetsche Börse’s OTC FX platform 360T, both provide access to Eurex’s listed FX service portfolio.
The news follows the launch of clearing for deliverable cross-currency swaps and over the counter (OTC) FX products by Eurex following a test phase earlier this year.