Eurex Renews Push for EU STIR Derivatives Business

Eurex says its extension of is Partnership Programme to the short-term interest rate (STIR) derivatives segment is gaining traction, with 18 participants from Europe, the UK and US signed up ahead of a relaunch in the last week of October of STIR futures and options.

The new partnership programme and product launch will be accompanied by a new liquidity incentive programme for liquidity providers for Euribor and Euro Short Term Rate (€STR) derivatives which will come into effect beginning of November.

The move is part of Eurex’ efforts to create what it says is a viable alternative to trade and clear euro-denominated STIR derivatives within the EU, adding this step allows it to offer liquidity across all fixed income derivatives and repo products along the entire euro yield curve traded on-exchange and OTC.

“For market participants this step offers the opportunity to benefit from margin and operational efficiencies building on the leading Eurex trading, clearing and risk management infrastructure,” the exchange says. “It further demonstrates Eurex’s and the broader markets’ intention around supporting the European Commission’s systemic stability and strategic autonomy agenda.”

Matthias Graulich, member of the Eurex Clearing executive board, says, “This initiative will enable global clients to benefit from a comprehensive product offering including Eurex’s leading European government bond derivatives and repo segment as well as the clearing of OTC interest rate swaps. At the same time, it will further enhance Eurex’s value proposition by building out the home of the euro yield curve ambition for euro-denominated derivatives and repo, delivering efficiencies to a global client base.”