The TRADE is happy to introduce the shortlist for our Editors’ Choice, Outstanding Derivatives Exchange Group. The shortlisted derivatives exchange group have all experienced great years and have achieved outstanding performance. Learn more about our shortlisted candidates below, including Cboe Europe Derivatives (CEDX), CME Group, Eurex, Euronext and ICE.
Cboe Europe Derivatives (CEDX)
Launched in September last year, Cboe Europe Derivatives is a relatively new player in the space but has made a significant impact in its short time of operation. Ahead of its launch, Cboe Europe Derivatives had already received backing from participant banks ABN Amro Clearing, Goldman Sachs and Morgan Stanley. In addition, All Options, Da Vinci Derivatives, DRW, Flow Traders, Liquid Capital Markets and Susquehanna International Securities also backed the new exchange as participant market-makers and proprietary trading firms prior to its launch.
Cboe Europe Derivatives is a pan-European marketplace which offers market participants a single access point to a wide ranging derivatives market. According to Cboe, the exchange is designed to create new opportunities for participants to express their views and manage their equity exposure, as well as to grow the derivatives market in Europe overall and improve its efficiency.
Since its launch in September last year, Cboe Europe Derivatives has seen its monthly volume of futures and options increase steadily from 66 to 1,421 as of September 2022. In March 2022, the exchange experienced a peak in monthly volume of futures and options which reached 2,464.
Derivatives giant CME Group has seen its quarterly international average daily volume (ADV) jump to 6.1 million contracts in Q3 2022, up 21% year-on-year. The jump in ADV was linked to current market conditions which have continued to create a heightened need for risk management worldwide. Elsewhere, EMEA ADV reached 4.2 million contracts, up 14% from Q3 2021.
This year alone, CME has launched a wide range of new futures as options as it continues to expand to improve upon its existing offering. In August, the exchange revealed plans to launch Euro-denominated Bitcoin and Ether futures, aimed at providing clients with improved tools to trade and hedge exposure to Bitcoin and Ether. Meanwhile, CME revealed plans to launch European overnight index futures, which are expected to help clients manage sovereign debt risk in Europe once available.
Eurex operates one of the largest derivatives exchanges in Europe and one of the largest globally by open interest. In terms of contracts traded, Eurex has improved its position among the world’s top 15 derivatives exchanges from 13th place in 2021 to 9th place this year. The exchange boasts approximately 7,000 registered traders from around 350 members in 33 countries that are connected to its platform.
Earlier this year, Eurex released its June 2022 figures revealing strong growth in a number of sectors, with interest rate derivatives showing the strongest year-on-year growth. Interest rate derivatives saw an increase of 42% year-on-year from 57.9 million traded contracts to 82.0 million, while index derivatives grew by 28% from 77.9 million traded contracts to 99.3 million. Eurex’s total traded derivatives contracts grew by 26% in June, from 167.7 million to 210.9 million in comparison to the same period last year. However, total contracts traded in equity derivatives fell by 8% percent to 29.2 million.
Euronext serves as the largest pan-European exchange and market infrastructure, connecting seven markets across the continent. The last year has proved fruitful for the exchange with surging trading volumes alongside a series of successful acquisitions.
In August, Euronext reported a particularly ‘solid’ Q2 driven by the sustained dynamism of non-volume activities and of trading operations. The exchange reported a 14% increase in revenue and income in Q2 of this year, compared to the same period last year, which reached €374.7 million – driven by the growth of non-volume related business and trading activities.
Non-volume related revenue accounted for 59% of Euronext’s Q2 total revenue this year, while trading revenue grew to €129.2 million, a 15.6% increase compared to the same period last year – a result linked to robust performance across all asset classes in a volatile market environment. Growth was also driven by the recent Borsa Italiana acquisition, which also bumped up the exchange’s strong Q1 results.
Elsewhere, Euronext reported that net income, share of the parent company shareholders was up 37.2% to €118.9 million, an increase by €32.2 million compared to the same period last year.
Intercontinental Exchange (ICE), which describes itself as the home of the UK derivatives market, has FTSE derivatives and the MSCI derivatives as its two largest product suites – of which it boasts over 95% and 73% market share, respectively.
This year, ICE has established numerous partnerships with other firms to remain competitive and to continuously improve its existing offering. Most recently, in September, processing solutions provider Murex integrated with ICE Data Services, part of ICE, to improve access to ICE’s fixed income and derivatives data via the MX.3 platform. The incorporation of ICE’s data into MX.3 provides existing and potential clients with access to a wide range of daily and historical data such as cross-asset prices, volatilities and other analytics – which can be used to inform trading, risk management and profit and loss management.
Elsewhere, ICE started off the year with a partnership with cryptocurrency market data provider, Kaiko. The partnership resulted in a new offering which allows Kaiko’s cryptocurrency data feeds to be accessed by investors and enterprises connected to any of ICE’s data centres, including locations in the Americas, Europe and Asia-Pacific, or via the cloud using ICE Cloud Connect. The combination of ICE’s extensive network and Kaiko’s data services allows market participants to access high-quality cryptocurrency data feeds.