Eurex Reports Weak Derivatives Demand for July

Eurex, a subsidiary of the Deutsche Börse Group, has published its monthly volumes today, showing a decline across all classes of derivatives products in July on a year-on-year basis.

The Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term pointed out that the European equity derivatives took the worst hit with a year-on-year decrease of 23 percent in the monthly volume.

For the entire derivatives market, including European equity index derivatives and European interest rate derivatives, Eurex witnessed a total year-on-year fall of 13 percent with a monthly volume of €1.12 billion, compared to €1.3 billion in the same month the previous year.

According to the exchange, the ongoing uncertainty in dividend pricing is a challenge in the market.

Notably, in June, the European exchange reported excellent figures almost across all sectors. Though, Month-on-month, the total derivatives market decreased by 41.6 percent.

OTC Market Remained Positive Overall

However, coming to the over-the-counter (OTC) clearing market, most of the reported numbers were positive for the month.

The average daily cleared volumes dropped by 13 percent in July to €99 billion, compared to the previous year’s same month’s figure of €114 billion, because of the reduced volumes in Forward Rate Agreements.

The notional outstanding volumes for the OTC market increased by 53 percent, while the interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term remained a solid performer with an uptick in the average daily cleared volumes by 27 percent year-on-year.

In the repo market, Eurex’s business grew to €86.9 billion of average term-adjusted volume, growing 37 percent year-on-year.

The Eurex commodities market, however, echoed the derivatives segment and witnessed declines across all major product suites.

Meanwhile, Eurex is going to launch options on Euro-Buxl Futures (OGBX) next month, thus, offering hedging and trading opportunities at the very long end of the interest rate curve.