Morgan Stanley Joins Eurex FX Business

Eurex has announced that Morgan Stanley has started trading on its listed FX business, joining what the exchange group says is a “growing number” of participants moving to the exchange or combining listed and OTC FX trading using Exchange-for-Physical (EFP) services.

Eurex says asset managers especially are increasingly seeking to combine the depth and flexibility of FX OTC markets with all the benefits of centrally cleared listed FX products. By using EFP services, they can swap OTC trades into exchange-traded and centrally cleared contracts, thus removing uncleared exposure, and optimising capital allocation.

“We are delighted to see Morgan Stanley expanding their FX activities at Eurex and offering our EFP services to their European clients,” says Jens Quiram, global co-head FIC derivatives and repo sales at Eurex. “With SA-CCR and UMR regulations coming into effect, these services provide a cost-effective solution to mitigate the impact of these rules. It is a great addition on our way to becoming Europe’s leading FX liquidity hub.”

Richard Condon, managing director, head of FX investor sales, Morgan Stanley, adds, “We look forward to working with Eurex to expand our EFP footprint. Asset managers in Europe are recognising that the EFP mechanism is a simple yet dynamic way to enhance their workflow while deepening their liquidity pool.

“The intersection of OTC liquidity, FX-specific execution strategies, and high-quality market making all wrapped in a cleared instrument has a powerful value proposition,” he adds. “Central clearing can also reduce the need for bilateral credit, settlement relationships or lengthy onboarding cycles.”