Eurex, the International Securities Exchange (ISE) and the options clearing corporation (OCC) are planning to create a transatlantic trading and clearing link that will allow Eurex customers to access ISE’s options market using their existing Eurex connections. Through this link, Eurex says its members will have access to the full suite of options products available at ISE and be able to execute orders in the ISE order book using their existing connectivity to Eurex.
As part of this initiative, ISE, Eurex and Eurex Clearing, the clearing house of Eurex, signed a term sheet with the OCC, the central counterparty for all US listed securities options contracts. According to the firm, this term sheet is the first step toward signing a definitive agreement that will enable Eurex customers to clear contracts traded via the link to ISE through their existing clearing accounts at Eurex Clearing. Eurex, ISE and OCC expect the transatlantic link will be implemented by the second half of 2009, subject to all necessary regulatory approvals.
“By establishing this transatlantic trading and clearing link between the US and European options markets, our customers will benefit from full access to the world’s largest equity options market,” says Andreas Preuss, CEO, Eurex. “Eurex’s established trading and clearing distribution will simplify US market access for our customers and generate additional trading volume.”
“This connection will broaden the distribution of the approximately 2,000 options products currently traded at ISE,” adds Gary Katz, CEO, ISE. “We are excited to extend our reach internationally to Eurex's global customer base. As a result of the link, ISE members will also benefit from interaction with a new set of order flow providers who will deepen the liquidity pool on our exchange.”