Eurex Exchange

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Eurex Exchange is an international exchange which primarily offers trading in European based derivatives and it is the largest European futures and options market. The products traded on this exchange vary from German and Swiss debt instruments to European stocks and various stock indexes. All transactions executed on Eurex Exchange are cleared through Eurex Clearing, which functions as a central counterparty (CCP) for multi-asset class clearing of the above-mentioned exchange-traded product range[1] as well as over-the-counter traded products.[2]

Eurex Exchange
Eurex-Logo.svg
TypeDerivatives exchange
LocationEschborn, near Frankfurt am Main, Germany
Founded1998
OwnerDeutsche Börse AG
Key peopleMembers of the Board: Thomas Book (CEO), Michael Peters, Mehtap Dinc, Randolf Roth, Peter Reitz , Carola Gräfin von Schmettow
Websitewww.eurexchange.com

According to the 2015 Futures Industry Association’s annual survey, Eurex Exchange is ranked as the world's third-largest derivatives exchange by contract volume.[3][4] The Exchange is headquartered in Eschborn, Germany, near Frankfurt am Main and it is operated by Eurex Frankfurt AG and Eurex Zürich AG, which are public companies wholly owned by the German stock exchange operator Deutsche Börse AG.[5]

HistoryEdit

In the 1990s, Europe went through a power shift in its financial sector. London (LIFFE, London Financial Futures Exchange) began to lose dominance in trading German government bonds futures (The Bund) to the Frankfurt-based, Deutsche Terminbörse (DTB). This event has come to be known as the ‘Battle of the Bund’.[6] The DTB was one of the world's first electronic exchanges, and by 1997 had distributed its screens across Europe and into the United States. As the DTB was in the midst of a battle to wrench liquidity in the Bund contract away from its chief cross-continental rival, the open outcry operated LIFFE, it began the merger proceedings with SOFFEX (the Swiss Options and Financial Futures Exchange). The shift started gradually but then followed a “tipping point” dynamic that began in early 1998.[7] All of these dynamic changes led in 1998 to the creation of Eurex. Its creation took almost a decade of close cooperation between the DTB and SOFFEX and their parent companies, Deutsche Börse AG and SIX Swiss Exchange to be completed. Eurex was jointly operated by Deutsche Börse and the SIX Swiss Exchange with the German group holding 50 percent of the voting rights and 85 percent of the share capital. This joint leadership lasted until January 2012, when Deutsche Börse acquired the remaining shares in Eurex Zurich AG from SIX Group AG, making Deutsche Börse the sole owner of the pan-European derivatives exchange.

Eurex has nine worldwide representative offices.

The following timeline outlines the consolidation through mergers and acquisitions among bourses in the European Union, which has taken place since the 1990s in response to financial harmonisation and liberalisation. Current, independent (parent) exchange companies are shown in colour.

      Intercontinental Exchange, Inc.
    New York Stock Exchange, Inc.     NYSE Euronext, Inc.
      London Traded Options Market   London International Financial Futures and Options Exchange   Euronext NV
        London International Financial Futures Exchange
      London Commercial Sale Rooms   London Commodity Exchange  
  Amsterdam Exchanges N.V. (Amsterdam Stock Exchange)       Euronext NV
      Bourse de Valeurs Mobilières de Bruxelles S.A. (Brussels Stock Exchange)
    Société des Bourses Françaises S.A. (Paris Stock Exchange)
      Bolsa de Valores de Lisboa e Porto (Lisbon Stock Exchange)
            Irish Stock Exchange  
                  Oslo Stock Exchange   Oslo Børs Holding ASA   Oslo Børs VPS Holding ASA  
                                        Verdipapirsentralen   Verdipapirsentralen ASA  
                                      VP Securities A/S  
                    Borsa Italiana S.p.A. (Italian Bourse)   London Stock Exchange Group plc
      London Stock Exchange plc
                                                Statnett Marked AS     Nord Pool Spot AS   Nord Pool AS  
                                                Nord Pool ASA  
                                    Nasdaq, Inc.
                        Stockholm Stock Exchange   OM AB   OM HEX AB   OMX AB
                            Helsinki Stock Exchange   Helsinki Exchanges Group Plc
                                                  Tallinn Stock Exchange  
                                                Riga Stock Exchange  
                                                Vilnius Stock Exchange
    Copenhagen Stock Exchange  
                                            Iceland Stock Exchange  
                                                            Armenian Stock Exchange  
                                                  SIX Swiss Exchange AG
                        Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (Spanish Bourses)  
                            Budapest Stock Exchange       Budapest Stock Exchange
            Wiener Börse AG (Vienna Stock Exchange)   Central and Eastern Europe Stock Exchange Group AG   Vienna Stock Exchange
                                                  Burza cenných papírů Praha, a.s. (Prague Stock Exchange)  
                                              Ljubljana Stock Exchange      
                                                Zagreb Stock Exchange
  Frankfurter Wertpapierbörse AG (Frankfurt Stock Exchange)     Deutsche Börse AG
                                    Centrale de Livraison de Valeurs Mobilières   Cedel International  
                                                                European Energy Exchange  
                                                            Eurex Exchange  
                                                            STOXX
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Trading technologyEdit

The open outcry style of trading was still the norm in the US and the UK in 1998. Eurex Exchange was one of the first to offer a fully electronic trading platform as opposed to the traditional forms, such as open outcry or pit trading, available at the time. That means buyers and sellers transact from remote locations and are brought together through an electronic trading platform and network. The platform used today, was launched in 2013 and it is known as the T7 trading architecture. T7 was originally developed by Deutsche Börse Group and it advanced electronic derivatives trading.[8] This robust and reliable trading system connects more than 7,700 traders in over 35 countries, trading more than 7.0 million contracts daily.[9][7]

ReferencesEdit

  1. ^ AG, Eurex Frankfurt. "Eurex Exchange - Products". www.eurexchange.com.
  2. ^ Staff, Investopedia (21 July 2005). "EUREX".
  3. ^ "2015-annual-survey-global-derivatives-volume - MarketVoice". www.marketvoicemag.org.
  4. ^ "Leading derivatives exchanges by volume 2016 - Statistic". Statista.
  5. ^ AG, Eurex Frankfurt. "Eurex Exchange - Corporate overview". www.eurexchange.com.
  6. ^ "Battle of the Bund".
  7. ^ a b "Eurex - MarketsWiki, A Commonwealth of Market Knowledge". www.marketswiki.com.
  8. ^ AG, Eurex Frankfurt. "Eurex Exchange - T7 Trading architecture". www.eurexchange.com.
  9. ^ "Deutsche Börse Group: 114.8 million contracts traded at Eurex in July 2016". 1 August 2016.

External linksEdit