Highlights

Market update – Closing with another record quarter

FX futures volumes continued to the positive momentum, setting another trading record in Q4 2022 – for the sixth time in a row.

During the period spanning from September to December 2022, market participants traded over 500,000 FX futures on Eurex.

This included an exchange-for-physical (EFP) transaction of over 62,000 contracts (EUR 6.2bn equivalent) executed in one single ticket on 14 December 2022, making it the largest EFP trade on Eurex thus far. 

Total FX futures volumes in 2022 reached 1.7 million contracts (up 131% YoY). Open interest in the segment increased to 75,000 contracts (up 50% YOY) by the end of December. 

We see that clients and their banks increasingly rely on FX futures to optimize portfolios from a margin and capital perspective. They maintain their bilateral relationships by trading FX futures as block trades and EFPs and outside the central limit order book. 

This way, clients can maintain access to their OTC FX counterparties and benefit from liquidity available in OTC FX markets when building a position in FX futures. Simultaneously, they optimize their portfolios under current regulatory requirements, such as the SA-CCR capital regime and Uncleared Margin Rules.

In 2023, Eurex and 360T will continue to focus on creating the universe for bilaterally traded FX futures to support the ongoing market transition from OTC FX instruments to listed FX derivatives.

Go to the Listed FX derivatives website: Listed FX derivatives (eurex.com)

Eurex waives fees for FX blocks & EFPs in Q1 

Eurex is waiving all trade entry service fees for FX futures in Q1 2023. The fee waiver enables FX futures users to enter into block trades and exchange-for-physicals (EFPs) free of charge. The fee waiver will be in place until 31 March 2023 – and therefore offers all participants significant savings in the upcoming FX futures roll event. The fee waiver enables new and existing trading participants to open new or move existing positions to Eurex.

Go to the circular.

Listed FX trading around the world: New regulations spur further growth 

This e-Forex article looks at the impact of regulatory developments on the continued growth of on-exchange FX trading and various venues’ plans to expand both their product range and geographic footprint.

Go to the article featuring Eurex’s Tobias Rank, Head of FX Product Sales. 

FX Client Clearing is dead … so long live the EFP

Expert opinion by David Holcombe, Head of Product - Listed FX & Clearing, 360T, on the changes in the world of FX Clearing.

Read the article. 

Combining listed and OTC FX products improves risk management 

Trader TV interview with Eurex’s Lee Bartholomew. As FX risks increased in 2022, traders found it harder to manage those risks while maintaining efficient trading. Supported by regulatory tailwinds, the use of listed FX products has increased and consequently complemented OTC and spot products.

Watch the video.

Meet us at TradeTech FX USA 

Eurex’s Jens Quiram will participate in the panel discussion on 23 February, “How can your desk expand the use of FX futures to enhance price discovery and drive trading efficiencies?”

We are looking forward to meeting you at TradeTech FX USA.

Get more information on the event.