Deutsche Börse Group’s Eurex is the European hub of the global derivatives market, offering a combination of listed FX alongside a deepening connection to over-the-counter (OTC) FX markets. Eurex’s FX infrastructure is designed to allow market participants to adapt to regulatory mandates, minimizing the cost of trading while allowing clients to more effectively transition between listed and OTC formats.
In addition, interoperability between Eurex and the multi-dealer OTC FX and spot platform 360T – also part of Deutsche Börse Group – has continued to grow, with the collaboration between the two platforms enabling access to listed and OTC liquidity with flexible execution options, streamlined workflows and new cost efficiencies. Members can trade in the central limit order book (CLOB), through off-screen blocks and use more recent innovations such as Exchange for Physicals.
In partnership with 360T, Eurex is creating a model where buyside firms can put out a request-for-quote (RFQ) with banks in the OTC market and then execute the trade as a future that faces a clearing house and reduces capital costs. This process is aimed at automating the trading lifecycle to reduce the operational burden of its clients.
Eurex further tailored its product offering to enable market participants to either tap into the liquidity streamed into the CLOB or leverage their bilateral trade relationships by asking for prices from their preferred dealers directly and trading in an OTC-style fashion on a fully disclosed basis.
The exchange also enabled market participants to integrate FX futures into their existing OTC FX workflows and collaborated with several multi-dealer FX and RFQ platforms to integrate Eurex FX futures, including 360T, RFQ Hub, and Eurex EnLight. Eurex also invested in enhancing order book liquidity, resulting in various new non-bank liquidity providers quoting into the order book.
Currency pairs are a further part of Eurex’s position as a European hub, and it offers liquidity in EUR/USD, EUR/GBP, EUR/CHF and EUR/JPY contracts. Its product suite also offers liquidity in G7 USD pairs, Scandis, G7 crosses and emerging market currencies. Its listed-derivatives business comprises 25 currency pairs in total that can be traded with futures and options, allowing members to trade a range of currencies against the euro, in addition to significant liquidity in non-euro pairs, with one of the most actively traded being USD/KRW. The product is listed on the established Eurex/KRX Link and enables trading in KRW-denominated derivatives products during European and US trading hours on Eurex.
A key focus of the partnership between Eurex and 360T is also on merging OTC and listed workflows in an attempt to minimize the cost of transition between each market and the related operational burden.
During the review period, FX trading volumes increased by 53% and open interest by 74% compared to the same period in the previous year. Eurex also onboarded 11 new clearing members, including notable European banks and large asset managers, with 22 banks now using the service.
