What Is The Eurex?
Eurex is Europe's largest futures and options market and one of the most liquid fixed income markets in the world. It also offers a broad range of international benchmark products.
Based in Frankfurt, Germany, Eurex is a public company that is 100% owned and operated by Deutsche Börse. It has market participants operating from 700 locations around the world, with more than 1.6 billion contracts traded every year.
Eurex was created in 1998 and was one of the first exchanges in the world to offer fully electronic trading, replacing the traditional "open outcry" and pit trading method used in most exchanges. The company originally existed as a joint partnership between Swiss Options and Financial Futures Exchange and Deutsche Börse AG, but in 2012 the latter's share was bought out by Deutsche Börse.
Four Eurex Divisions
Eurex operates four main divisions.
1. Eurex Exchange
The Eurex Exchange is one of the world's largest derivatives exchanges, including what it says is the most actively traded and liquid market in euro-denominated equity index derivatives. It also offers trading in single equity products, alternative assets and commodities. It also operates one of the world's most liquid fixed income markets.
2. European Energy Exchange
The European Energy Exchange (EEX) offers contracts on power, coal and carbon dioxide emission allowances as well as freight and agricultural products.
3. Eurex Clearing
Eurex Clearing is Europe's leading central counterparty clearing (CCP) house, processing automated post-trade services for derivatives, equities, repurchase agreements (repos) and fixed-income transactions. The company says it is the world's only major clearing provider to manage risk by recalculating positions in real-time. It also guarantees the fulfillment of every trade made on one of its platforms.
4. Eurex Repo
Eurex Repo is a leading European market for international secured funding and financing, including repos and securities lending.
Eurex is the largest European derivatives market and operates one of the most liquid fixed income markets. Based in Frankfurt and owned and operated by Deutsche Börse, it also offers a broad range of international benchmark products. It was one of the first-ever exchanges to offer a fully electronic trading platform.
In addition to derivatives trading, Eurex also operates the leading European energy exchange and a leading European market for repos and securities lending. Its Eurex Clearing unit is Europe's leading CCP house.
Senior Market Specialist
Russell Shor (MSTA, CFTe, MFTA) is a Senior Market Specialist at FXCM. He joined the firm in October 2017 and has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the International Federation…