TSX and Eurex plan derivatives expansions

The Toronto Stock Exchange (TSX) is keen to enter the derivatives market as soon as it can, chief executive Richard Nesbitt said yesterday. Meanwhile, Eurex confirmed it would list foreign exchange futures from September 23 this year, the only major derivative class not already traded on the exchange.

TSX is barred from the derivatives business until 2009 under the terms of a 10-year non-compete agreement with the Bourse de Montreal. But Nesbitt said the two exchanges could revise the deal to allow some derivatives trading on TSX. He described a move to derivatives, before or after 2009, as "inevitable". The move could be led by environmental derivatives such as emissions trading contracts.

Eurex, the world's largest derivatives exchange by trading volumes, named 10 currency pairs that would be traded as foreign exchange futures from September 23. The futures include six US dollar pairs with the Australian dollar, Canadian dollar, euro, sterling, Swiss franc and yen, and four others: euro-yen, sterling-yen, euro-swiss franc and euro-sterling. The contracts will trade on Eurex US, with trading fees waived for the rest of the year.

"FX is one of the fastest growing markets in the world, and it is the only major financial asset class where Eurex has not historically been represented," said Rudolf Ferscha, chief executive of Eurex.