FX Futures and Options on Eurex Exchange
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Our product offering Futures and options* on six of the most liquid currency pairs are tradable at Eurex Exchange’s “one-stop-shop”: Key product features • Uniform contract size of 100,000 of the base currency • FX spot is the underlying for both options and futures • Attractive term structure – Three serial, three quarterly and four semi-annual expirations/maturities of up to three years – The same futures maturities exist for all option expiries to optimize your strategy trading • Minimum price movement of half a pip Highly competitive fees • Competitive all-in fee with strong order book focus: USD 0.30 for agent business and USD 0.15 for Market Makers and proprietary business • No Membership fees • Attractive incentives for Market Makers and Liquidity Providers Market-Making from the outset • Long-term Market-Making program from launch date • Commitment from various banks and renowned liquidity providers to support liquidity Eurex Trade Entry services FX derivatives that are traded outside the order book can subsequently be registered for clearing via our Eurex Trade Entry services. • Block Trade facility: minimum Block Trade size of 1,000 lots for EUR/USD contracts and 500 for all other currency pairs • Exchange for Physicals (EFP) facility: allows for simul- taneous purchase/sale of futures along with a sale/ purchase of the underlying spot currency, currency forward, non-deliverable forwards (NDFs), FX swap, currency swap, cross currency (basis) swap or another FX Futures contract irrespective of trade size Limited risk and maximized collateral efficiency Each trade is centrally cleared through Eurex Clearing to mitigate risk, with the widest range of accepted collateral available. • Eurex Clearing mitigates counterparty risk for each transaction until the final settlement day. • Clearing Members benefit from collateral efficiencies by reduced margin requirements and collateral deposits within a margin class for the same currency pair. • In accordance with EMIR Eurex Clearing’s Individual Clearing Model offers segregation and full portability of client assets. Open futures and options positions at maturity/expiry will result in payments that will be settled through the well- established CLS (Continuous Link Settlement) system. • CLS is owned by the world’s leading financial institutions and operates the largest multi-currency cash settlement system to mitigate settlement risk. • CLS settles payment instructions on a payment versus payment basis relating to underlying FX transactions in the major currencies. Best-in-class T 7 trading technology • Expanded functionality and minimal latency on a European- based matching engine, including round-trip times of 250μs in colocation FX Futures and Options at Eurex Exchange June 2014 Eurex Exchange offers FX Futures and Options that combine best-practice OTC market conventions with the transparency and minimized risk of exchange-traded, centrally cleared derivatives. That means, you benefit from mitigated counterparty risk for each transaction until the final settlement day through our own CCP, Eurex Clearing, as well as a CLS settlement solution. • EUR/USD • EUR/CHF • EUR/GBP • GBP/USD • GBP/CHF • USD/CHF *CFTC certification: Eurex Exchange’s exchange-listed FX Options are currently classified by the U.S. regulator CFTC (Commodity Futures Trading Commission) as swaps, because they settle into physical currencies. These FX Options contracts will be regulated as swaps that have been permitted to be offered to U.S. persons via direct access pursuant to CFTC No-Action Letter 13 – 46. (11 July 2013).
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Our FX Futures and Options combine best-practice OTC market conventions with the transparency of exchange-traded derivatives. Besides our own CCP – Eurex Clearing – mitigates counterparty risk for each transaction until the final settlement day.
Transcript of FX Futures and Options on Eurex Exchange
Our product offeringFutures and options* on six of the most liquid currency
pairs are tradable at Eurex Exchange’s “one-stop-shop”:
Key product features• Uniform contract size of 100,000 of the base currency
• FX spot is the underlying for both options and futures
• Attractive term structure
– Three serial, three quarterly and four semi-annual
expirations/maturities of up to three years
– The same futures maturities exist for all option expiries
to optimize your strategy trading
• Minimum price movement of half a pip
Highly competitive fees• Competitive all-in fee with strong order book focus:
USD 0.30 for agent business and USD 0.15 for Market
Makers and proprietary business
• No Membership fees
• Attractive incentives for Market Makers and
Liquidity Providers
Market-Making from the outset • Long-term Market-Making program from launch date
• Commitment from various banks and renowned liquidity
providers to support liquidity
Eurex Trade Entry servicesFX derivatives that are traded outside the order book can
subsequently be registered for clearing via our Eurex Trade
Entry services.
• Block Trade facility: minimum Block Trade size of
1,000 lots for EUR/USD contracts and 500 for all other
currency pairs
• Exchange for Physicals (EFP) facility: allows for simul-
taneous purchase/sale of futures along with a sale/
purchase of the underlying spot currency, currency
forward, non-deliverable forwards (NDFs), FX swap,
currency swap, cross currency (basis) swap or another
FX Futures contract irrespective of trade size
Limited risk and maximized collateral efficiencyEach trade is centrally cleared through Eurex Clearing to
mitigate risk, with the widest range of accepted collateral
available.
• Eurex Clearing mitigates counterparty risk for each
transaction until the final settlement day.
• Clearing Members benefit from collateral efficiencies
by reduced margin requirements and collateral deposits
within a margin class for the same currency pair.
• In accordance with EMIR Eurex Clearing’s Individual
Clearing Model offers segregation and full portability of
client assets.
Open futures and options positions at maturity/expiry
will result in payments that will be settled through the well-
established CLS (Continuous Link Settlement) system.
• CLS is owned by the world’s leading financial institutions
and operates the largest multi-currency cash settlement
system to mitigate settlement risk.
• CLS settles payment instructions on a payment versus
payment basis relating to underlying FX transactions in
the major currencies.
Best-in-class T7 trading technology• Expanded functionality and minimal latency on a European-
based matching engine, including round-trip times of
250µs in colocation
FX Futures and Options at Eurex Exchange
June 2014
Eurex Exchange offers FX Futures and Options that combine best-practice OTC market conventionswith the transparency and minimized risk of exchange-traded, centrally cleared derivatives. That means, you benefit from mitigated counterparty risk for each transaction until the finalsettlement day through our own CCP, Eurex Clearing, as well as a CLS settlement solution.
• EUR/USD
• EUR/CHF
• EUR/GBP
• GBP/USD
• GBP/CHF
• USD/CHF
*CFTC certification: Eurex Exchange’s exchange-listed FX Options are currently classified by the U.S. regulator CFTC (Commodity Futures Trading Commission)as swaps, because they settle into physical currencies. These FX Options contracts will be regulated as swaps that have been permitted to be offered to U.S.persons via direct access pursuant to CFTC No-Action Letter 13–46. (11 July 2013).
• A Strategy WizardSM supporting order book trading
in option and option volatility strategies in 50+
strategy types
• Full spread matrix for all FX Futures contracts so that
all calendar spread combinations are supported with
implied matching
Contract specifications – FX Futures and (European-style) FX Options
EUR/USD, EUR/CHF, EUR/GBP, GBP/USD, GBP/CHF and USD/CHF (base currency/quotation currency)
Futures onEUR/USD: FCEUEUR/CHF: FCEFEUR/GBP: FCEP GBP/USD: FCPUGBP/CHF: FCPFUSD/CHF: FCUF
100,000 units of the base currency.
Delivery of 100,000 units of the base currency against receiving an amount of 100,000 units of the quotation currency multiplied by the final settlement price.
The price quotation is in units of the quotation currency per unit of the base currency, with five decimalplaces. The minimum price change is 0.00005 units of the quotation currency.
Up to 36 months:The three nearest successive calendar months, the three following quarterly months ofthe March, June, September and December cycle thereafter, and the four following semi-annual monthsof the June and December cycle thereafter.
Expiration months with a remaining lifetime of <– 2 years: 0.005; > 2 years: 0.01
Two exchange days following the last trading day, if this is an exchange day, otherwise the exchange dayimmediately following that day.
The third Wednesday of each maturity/expiration month. Close of trading in the maturing/expiring contracts is at 15:00 CET. Entering exercise instructions for options positions is possible until 16:00 CET.
Futures:Based on the volume-weighted average of the prices (VWAP) of all transactions during the minute before17:30 CET (reference point), provided that more than five trades transacted within this period; If less than 5 sales occur, the VWAP of the last five transactions concluded before 17:30 CET within the last 15 minutesor the mid point of bid asks prices in the order-book before 17:30 CET is used.
Options:The underlying reference price for FX Options contracts is the daily settlement price of the correspondingFX Futures contract.
Futures:Based on the volume-weighted average of the prices of all transactions during the minute before 15:00 CET.If no adequate prices are available, Eurex Clearing will use the average mid-price of the last displayed bid/ask spot prices spread during the minute ending at 15:00 CET that are published by the data service provider designated by Eurex Clearing.
Options:The final settlement price of the corresponding maturing futures contract shall be relevant for the FX Optionscontract.
Futures: 08:00–22:00 CETOptions: 08:00–19:30 CET
Bloomberg: xx Comdty <GO>Reuters: <0#:> CQG:my
Options onEUR/USD: OCEUEUR/CHF: OCEFEUR/GBP: OCEPGBP/USD: OCPUGBP/CHF: OCPFUSD/CHF: OCUF
Underlying
Products and product IDs
Contract size
Settlement
Price quotation and minimum price change
Contract months
Exercise price intervals
Delivery day
Last trading day
Daily settlement price
Final settlement price
Trading hours (Monday to Friday)
Vendor codes
Order Number: E1E-074-0614
ARBN Number: Eurex Frankfurt AG ARBN 100 999 764
Neither Eurex Frankfurt AG (Eurex), nor its servants nor agents, is responsible for any errors or omissions contained in this publication whichis published for information only and shall not constitute an investment advice. Any information herein is not intended for solicitation purposesbut only for the use of general information. Eurex offers services directly to members of the Eurex market. Those wishing to trade in anyproducts available on the Eurex market or to offer and sell any such products to others should consider both their legal and regulatory positionin the relevant jurisdiction and the risks associated with such products before doing so.
For further information please visit www.eurexchange.com/fx or contact
Sales United KingdomReny Morsch T +44-20-78 62-72 24
Sales FranceNicolas Kageneck T +33-1-5527-67 76
Sales AmericasTimothy Levandoski T +1-312-544-10 56
Sales Asia & Middle EastMarkus Georgi T +852-25 30-78 20
Sales GermanyJanek Buttermilch T +49-69-211-136 95
Sales Italy and SwitzerlandMarcello Sicuro T +41-43-430-7126
