Eurex trading flat as equity products offset rates decline

Trading volume on Eurex has remained flat in February, though equity derivatives are taking off as cash equity markets also accelerate.

Trading volume on Eurex has remained flat in February, though equity derivatives are taking off as cash equity markets also accelerate.

The Deutsche Boerse-owned derivatives exchange saw an average daily volume of 7.8 million contracts traded during February, down marginally from 7.9 million in the same month of 2014.

But performance among its product range was mixed, with strong performance in equity derivatives, while interest rate products declined.

Eurex’s equity index derivatives segment traded 57.1 million contracts last month, up from 50.7 million in the same period of 2014.

Meanwhile equity options and single stock futures recorded a total of 24.2 million contracts traded in February 2015, up from 18.2 million in 2014.

The buoyant equity derivatives market reflects similarly strong trading conditions on cash markets. On the Deutche Boerse Xetra book, a total of €125.5 billion was traded in February, up by almost 25% from €102.6 billion in the same period last year.

However, low interest rates and falling inflation have led to reduced volatility in interest rates and hurt derivatives volumes for the products. Total trading in Eurex interest rate products last month totaled 33.9 million contracts, doen from 38.5 million a year ago.

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