Eurex passes milestone with 1 bln contracts traded

R

RSPhoenix

17 Dec 2003 22:08

Eurex passes milestone with 1 bln contracts traded


CHICAGO, Dec 17 (Reuters) - Eurex, the world's largest futures exchange, claimed a new bragging right on Wednesday by trading its one billionth contract of 2003, the first time any derivatives mart has reached that milestone.

As the German-Swiss exchange awaits a ruling from U.S. regulators on whether it can open a U.S. branch in February, volume at "big Eurex" in Frankfurt has risen 25 percent so far from 801 million contracts for the whole of 2002.

About 60 percent of Eurex turnover is generated by U.S. and U.K.-based customers, the exchange said, up from about 22 percent in 1998 when Eurex was created by Deutsche Boerse and the Swiss Stock Exchange.

"Internationally, our customers and business partners have helped us build the most liquid marketplace in the world," said Eurex chief executive officer Rudolf Ferscha.

Eurex's most active contracts are futures on European benchmark fixed income products and equity indexes.

The largest U.S. futures exchanges, the Chicago Mercantile Exchange and the Chicago Board of Trade, which are opposing Eurex's proposed move to the U.S. market, have also posted record derivatives volume this year.

The CBOT passed its milestone in early October and the CME on Nov 13.
 
By Ros Krasny

CHICAGO, Dec 22 (Reuters) - German-Swiss Eurex and the Clearing Corp. on Monday backed down on their promise to launch the Eurex US exchange on Feb. 1 and a global derivatives clearing link on March 28.

The move came after "correspondence received from the U.S. Commodity Futures Trading Commission," the U.S. futures regulator, the firms said in a release.

The start dates are still subject to satisfaction of applicable U.S. and European regulatory requirements, Eurex and the Clearing Corp. said on Monday, in a reversal of recent comments.

In touting the clearing link and promising $2.5 billion in savings to clearing firms through margin offsets, Eurex -- the world's largest futures exchange -- and its clearing partner did not expect to have to go through a lengthy regulatory review.

Rudolf Ferscha, Eurex's chief operating officer, told reporters on Dec. 16 that Eurex Clearing would not need to go through the time-consuming process of becoming a designated U.S. clearing organization before starting the link.

Dennis Dutterer, president of Clearing Corp., said on the same teleconference that he did not expect the link to require a "unique approval process" from the CFTC since the firm is already a designated clearing organization.

Since then, though, CFTC officials -- including Mike Gorham, director of CFTC's division of market oversight -- have said there would be a rigorous review.

"The bottom line is we will have to take some action, and it's just too early to say what that will be," Gorham said after the clearing link was announced.

The link would allow U.S. customers to clear euro-denominated trades made on Eurex's Frankfurt exchange at the Chicago-based Clearing Corp. European customers could clear U.S. dollar transactions made in the United States through Eurex Clearing in Frankfurt.

The first phase of the Eurex US exchange, an electronic platform that will offer futures and options trading in U.S. Treasury securities and European stock index contracts, also awaits CFTC approval.

A second public comment period on the Eurex application ended on Friday. Eurex's application was made on Sept. 16 and the CFTC has until mid-March to make a ruling.
 
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DJ Euro Stoxx 50 Future

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Quote from Baruch:

When will Eurex be open again? Monday?
More...

Yes, Eurex opens again on Monday. It is closed on Wednesday (31. Dec) and Thursday (1. Jan) and it will be open again next Friday (2. Jan).
 
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