![Risk.net](https://www.risk.net/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
Eurex to launch US exchange in February
Eurex plans to launch its long-anticipated US futures and options exchange in Chicago on February 1. At a press conference this morning in Chicago, Eurex chief executive officer Rudolf Ferscha said Eurex filed this morning with the US Commodity Futures Clearing Corporation for permission to run a regulated exchange that will trade a “full range” of US and European interest rate and equity products.
Ferscha said Eurex US is seeking equity participation from users of the exchange, up to and including board-level representation. These partners will have “real governance participation”, he said.
Eurex US poses a serious challenge to the existing Chicago exchanges because of its low pricing. Michael McErlean, a director of Eurex US, said it would charge 20 cents per contract or less “on the vast majority” of contracts, and that “no trader will pay more than 30 cents per contract”. The exchange has committed to those prices for five years, he said. The other Chicago futures exchanges have fees that often run to over $1 per contract, and have different prices for members and non-members.
McErlean said the exchange will initially offer a full range of US Treasury contracts, including the two, five and 10-year notes and the 30-year Treasury bond, futures and options on Euro interest rates, and equity index products including the Dax and the DJ Eurostoxx 50.
McErlean claimed that, on US Treasury products, Eurex’s pricing could save the market $100 million annually. “That’s why there’s such a buzz about Eurex coming to the US,” he said.
Eurex will offer access to the market through its existing trading systems, so users will not need to install new screens or lines, although the system will be upgraded with new software. It will have a block trading facility for both futures and options with a minimum trade size of 2,500 contracts.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Exchanges
Asia’s ETF assets on the rise – HKEX presents the results of Asia ETF survey 2019
Asia’s total ETF assets surged by 23.9% in the first half of 2019 thanks to an increasing adoption of ETFs into investment portfolios. According to a survey conducted by Hong Kong Exchanges and Clearing (HKEX), asset expansion in Asia’s ETF market is set…
NYSE Offers Exchange-Calculated Bitcoin Index, with More to Come
NYXBT will initially be based off data from Coinbase Exchange.
Deutsche Börse to set up Europe's first multi-asset RMB platform
German exchange group signs joint venture deal with CFFEX and Shanghai Stock Exchange
Exchange Revenue Figures Rise, Fall; Data Revenues Continue Steady Increase
A mostly positive mix of Q1 results also yield big increases in data revenues for some exchanges.
Lift-off for ASX Aussie dollar swap clearing business
Volumes jump following revamp of Sydney bourse's clearing incentive scheme
Exchange Data Revenues Make Positive Start to 2015
Acquisitions made up for some shortfalls in exchange revenues
CME looks to local banks for FX liquidity in emerging markets
Chicago-based exchange targets China, India and LatAm growth