German exchange Eurex has set its sites on attracting high volume interest rate trading clients such as hedge funds as it looks to build on the solid start made by its new European interest rate contract, according to a report by FOW.
The reports cites the Frankfurt-based exchange as revealing that trading volumes in its Euribor contracts at, which was relaunched on 1 November, ticked up this month to a record 110,000 lots early this week.
The new Euribor contract is now backed by 12 liquidity providers and 20 banks which have helped drive trading turnover while open interest is around 5,000 lots, according to Mathias Graulich, member of the Executive Board of Eurex Clearing.
At a Deutsche Boerse event on Tuesday, he said: “If you look at the trajectory since 1 November, we started out with zero on the first day and it has climbed step-by-step so last week we had on average 5% market share and on 20 November a 10% market share which is a very promising start.”
Graulich said the new Euribor contract is now backed by 12 liquidity providers and 20 banks which have helped drive trading turnover while open interest is around 5,000 lots.
“The next important step is to get the price-takers active so we are discussing with a number of end-users of the Euribor futures to feel comfortable with the liquidity and then take advantage of our unique value proposition like cross product margining between Euribor and Schatz Futures,” he added.
