Derivatives

New launch will enable Eurex to offer a listed, centrally cleared and cash-settled solution for trading or hedging the new risk-free rate.

The move will help market participants manage risk more efficiently, alongside providing the ability to adjust positions at any time of the day.

Record trading volumes have driven clients to demand new solutions to manage risk and process business at scale.  

The exchange today started trading a new suite of overnight index futures based on the euro short-term rate (€STR), driven by strong client demand.

The exchange group has invested $3 million into Caplight Technologies to expand its derivatives trading and hedging capabilities on private company shares.  

Learn more about the five firms shortlisted for our Editors’ Choice Award for Outstanding Derivatives Exchange Group this year: including Cboe Europe Derivatives (CEDX), CME Group, Eurex, Euronext and ICE.

The derivatives exchange will convert all eligible Eurodollar futures and options to SOFR by April 2023.  

The group has seen ADV rise by 21% year on year as investors pile into derivatives in an attempt to navigate the current climate of volatility.  

Scott O’Malia, ISDA’s chief executive officer, provides insights into how improving consistency within reporting will allow greater transparency for derivatives trading.

The move underlines LCH SwapAgent’s ongoing support of the industry transition to risk free rates.