Eurex Adds Seven FX Futures

Eurex has expanded its FX futures coverage to the most heavily traded European currencies after GBP, CHF, and EUR as part of its to develop into a liquidity hub covering major European currencies.

The exchange has started trading seven new FX Futures on Scandinavian currencies, including EUR/NOK, EUR/SEK, EUR/DKK, USD/NOK, USD/SEK, USD/DKK, NOK/SEK. A liquidity scheme caters for tight pricing and competitive liquidity, the exchange says.

“Gaining exposure to Swedish, Danish and Norwegian currencies allows clients to hedge positions and seize unique trading opportunities,” says Maximilian Dannheimer, head of FX ETD sales at Eurex. “The launch of Scandinavian currency futures is a natural evolution to offer transparency and minimize risk by exchange-traded, centrally cleared derivatives in G10 currencies.”

Eurex FX Futures are comparable to OTC FX forwards but have lower counterparty credit risk as financial obligations are guaranteed by Eurex Clearing as central counterparty. For those traders who want to take their contracts to expiration, the exchange says its futures are physically settled through CLS.

The roll out means Eurex offers now 19 currency pairs. All FX contracts are 100,000 units (except for NOK/SEK pair) of the base currency with a minimum price change at 1/10th of a pip. Eurex Listed FX service portfolio can be accessed through the standard T7 trading system or Deutsche Börse’s OTC FX platform 360T.