Eurex Relaunches EURIBOR Derivatives and Introduces Liquidity Programs

<p>Eurex,
a derivatives exchange, has officially relaunched its EURIBOR derivatives segment,
to offer in the short-term interest rate (STIR) and derivatives space. This
move coincides with the commencement of Eurex's STIR Partnership and Liquidity
Provider Programs. </p><p>EURIBOR Derivatives Relaunch
and Liquidity Programs</p><p>Eurex's
relaunch initiative is accompanied by the introduction of a liquidity provider
program, designed to increase on-screen liquidity in Three-Month EURIBOR
Futures, Three-Month Euro STR Futures, Options on Three-Month EURIBOR Futures,
and One- to Four-Year EURIBOR Mid-Curve Options Contracts.</p><p>A
total of 19 partnering banks have demonstrated to support Eurex's EURIBOR
segment relaunch by enrolling in the newly introduced STIR Partnership Program.
Eurex now offers an interest rate product suite that covers the short- and
long-ends of the spectrum, spanning listed, over-the-counter, and repo
business. </p><p>More
than 760,000 contracts have been traded in Three-Month Euro STR (€STR)) Futures since their launch on
January 23, 2023. These money market futures provide a listed, centrally
cleared, and cash-settled solution for trading and hedging €STR, effectively
complementing Eurex Clearing's €STR Overnight Index Swap offering.</p><p>Eurex Partners with Goldman
Sachs </p><p><a href="https://www.financemagnates.com/institutional-forex/how-goldman-sachs-is-transforming-eurexs-fx-liquidity-hub-in-europe/">Eurex has forged a strategic
partnership with Goldman Sachs</a>
to bolster its European FX liquidity hub, <a href="https://www.financemagnates.com">Finance
Magnates</a>
reported earlier. This collaboration aims
to enhance services and capabilities of Eurex in the FX market.</p><p>Goldman
Sachs will join Eurex as a member, a clearing member, and a liquidity provider
for off-book transactions, playing a dual role that offers advantages to market
participants. By assuming these roles, market participants can maintain
bilateral trading relationships while benefiting from fully cleared FX
contracts. </p><p>Jens
Quiram, the Global Head of FIC Derivatives &amp; Repo Sales at Eurex,
underscored the significance of Goldman Sachs' involvement in the operations of
the derivatives exchange. He noted that the financial giant's dual role would
expand the reach of Eurex's listed FX liquidity, marking it as "another
major milestone on our way to expand Europe's leading listed FX liquidity
hub."</p><p>Joseph
Nehorai, the Global Co-Head of Futures at Goldman Sachs, highlighted the
increasing costs in the FX markets, which are driving a shift toward listed FX
derivatives. This shift enables the buy-side community to reap the benefits of
both OTC trading and centrally cleared derivatives, thus enhancing the options
available to market participants.</p><p>Impact
on the European FX Market</p><p>The
partnership between <a href="https://www.financemagnates.com/tag/eurex/">Eurex</a> and <a href="https://www.financemagnates.com/tag/goldman-sachs/">Goldman Sachs</a> carries implications for the
European FX market, bringing about several changes.</p><p>The
collaboration is set to fortify the local FX liquidity hub, offering improved
pricing and efficient trades to market participants. By allowing the conversion
of OTC trades into exchange-traded and centrally cleared contracts, the
partnership significantly enhances risk management and eliminates uncleared
exposure in OTC trading.</p><p>The
FX market has seen a rising appetite for listed FX derivatives. Goldman Sachs'
support positions Eurex to meet this demand, providing the advantages of both
OTC and centrally cleared trading options. </p>

This article was written by Tareq Sikder at www.financemagnates.com.