OTC Vola Trades

The Vola Trade facility allows authorized members to clear futures and options transactions through Eurex Clearing resulting from bilaterally agreed volatility trades. They are administered by Eurex Clearing like normal exchange transactions and may too be closed through the order book of the Exchange.

In general, a vola trade is a trade where two parties

• conclude an on exchange or off-exchange options transaction and
• simultaneously or in a second step, these parties agree on the off-exchange purchase/sale of the futures contract underlying the options transaction.

Vola Strategy with Cash Equity Leg

Eurex Clearing too offers the entry of volatility strategy trades for equity options including an integrated cash equity leg. Therefore, the Eurex® system does not support the trading of equity option volatility strategies through the regular order book. The entry of such transactions takes only place through Eurex Clearing's Block Trade facility.

The number of contracts cleared with the Vola Trade facility must exceed a minimum amount defined by Eurex Clearing and is available for the following combinations of Eurex options and futures:

The handling of vola trades in the Eurex® system is visualized in the film "Introduction to the Vola Trade Facility on the Eurex @X-Ceed Front-End".