Eurex Adds EM Currency Futures

Eurex is adding five new FX Futures contracts, the Brazilian real (BRL), Mexican peso (MXN) and South African rand (ZAR) on 10 October 2022, bringing the number of currency pairs supported by the exchange to 25.

The contracts are BRL/USD, MXN/USD, MXN/EUR, ZAR/USD and ZAR/EUR and the exchange says an accompanying liquidity scheme will ensure tight pricing and competitive liquidity. The new contracts will be cash settled in US dollars or euros upon expiry, meaning clearing members can use their existing infrastructure and will not be required to open new cash accounts in the new currencies.

“We see more and more firms coming into the scope of the Uncleared Margin Rules who are looking for solutions to reduce their average aggregate notional amount and bilateral margin requirements,” says Jens Quiram, global co-head FIC derivatives and repo sales at Eurex. “Listed FX Futures can address these challenges while reducing the overall risk of a portfolio due to Eurex Clearing’s multilateral netting capabilities.”