Eurex Extends Trade Entry Service Capabilities to US Market Participants

Eurex has extended the offering of its Trade Entry Services (TES) for all customers based in the United States, vastly expanding the network of its trading participants to a previously untapped market for 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, according to a Eurex statement.

Per the new capabilities afforded with the decision, Eurex TES will facilitate the entrance of trading participants into their respective off-book transactions into the comprehensive Eurex data system, in essence helping them to achieve a higher degree of flexibility of customized trading.

The action is important as it theoretically opens up the trading capabilities to one of the world’s largest economic blocks, which will aim to extend several advantages to trading participants by way of Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term and settlement initiatives, all conducted via Eurex. Eurex TES will foster functionalities such as block and vola trades, exchange-for-physical and exchange-for-swap transactions – flexible contracts are also supported.

Furthermore, the extension will also ensure that all off-book trades will be processed for the entirety of Eurex’s product suite, as approved by the US Commodity Futures Trading Commission (CFTC), the country’s paramount regulatory authority. The TES will encompass a wide range of asset classes, which include foreign exchange (FX) futures, equity index futures, fixed income futures and options, among others.

Earlier this month, Eurex made headlines when it reported its volumes for the month ending October 2015, having incurred a staunch decline MoM when compared to September 2015. In particular, Eurex’s leading installment of equity index derivatives (combining both equity options and single stock futures) saw a volume of just 58.1 million contracts in October 2015, down -35.9% MoM from 90.6 million contracts in September 2015.