Euro derivatives in the Nordic markets

Nordea Markets examines the recent flow of Nordic activity into the euro derivatives market as balance sheet hedging accelerates

The euro derivatives market has recently been influenced by large Nordic flows, hedging interest rate commitments and extending portfolio duration. Interest in this hedging opportunity has largely bypassed the local swap and volatility market, as the Nordic swap market has so far been unable to service such needs. However, current activity flows signal that new market participants can fulfil new needs. But this does not cause alarm, rather, we feel thrilled and maybe even a little proud that the