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Growth in Eurex Sector Derivatives continues to thrive

Release date: 12 Jun 2018 | Eurex Exchange, Eurex Clearing

Growth in Eurex Sector Derivatives continues to thrive

Eurex Exchange is the European leader for sector-based products. Sector index derivatives compliment exchange-traded products that deliver exposure to price movements of entire sector indexes. The high demand from market participants for sector index products stems from the increasing use of trading strategies that focus on individual sectors.

Sector index derivatives are one of the fastest growing segments on Eurex Exchange. A testament to their growing popularity, over 90 million sector index futures and options contracts were traded at Eurex Exchange in 2017. That’s a 25 percent increase in volume year-on-year. Average daily trading volume was 223 thousand futures and 113 thousand options contracts during 2017. In the first quarter of 2018, the volumes increased 23 percent year-on-year, with March 2018 being a record month for EURO STOXX® Sector Index Futures for contracts traded, with 9.6 million. Year-to-month 2018, we have seen a total of 44.5 million EURO STOXX® Sector Futures and Options traded. 

Our EURO STOXX® and STOXX® 600 Sector indexes are made up from a total of 76 products.

Investors recognize the benefits of exchange-traded sector futures and options, among which are:

  • Diversification
  • Ability to fine-tune portfolios
  • Combination of off-book and order book trading
  • Transparent pricing via vendors like Bloomberg and Reuters
  • Central clearing
  • Greater operational efficiencies
  • Flexible contracts and Eurex Trade Entry Services

Customer participation

Agency or client order flow accounts for more than 43 percent of the overall trading volume. More than 150 trading participants are currently active in sector derivatives.

The EURO STOXX® Banks Futures (Eurex Product ID FESB) continue to evolve in the current economic and regulatory framework. This sector attracts customer participation.

The EURO STOXX® Banks Futures volumes increased by eleven percent in 2018 year-on-year. With an average daily volume of 244 thousand contracts in 2018, it ranks amongst the top three equity index futures at Eurex Exchange. Open interest stands at 1.5 million contracts, the EURO STOXX® Banks Futures ranks on the second place in the ranking of equity index futures – directly following the EURO STOXX 50® Index Futures.

The EURO STOXX® Banks options market (OESB) saw a gradual shift from off-screen to on-screen. With an average daily volume of 172 thousand contracts in 2018, it ranks among the top two equity index options at Eurex Exchange. On 29 May 2018, the EURO STOXX® Banks Options reached a daily record with over 1 million contracts.  

Volume in EURO STOXX® Banks Futures since inception


Our STOXX® Europe 600 Oil and Gas Futures (FSTE) is another popular product given the importance of and strong trends within energy markets. Average daily volume in 2018 is approximately 7,950 contracts.

Clear benefits

In light of global regulatory developments, the fact that our sector products are cleared by Eurex Clearing, Europe’s leading clearing house, is another compelling argument for asset managers to use those products as risk management tools.

Many of these managers are turning to our sector futures and options to benefit from our portfolio-based margin approach. Trading sector futures and options can help investors achieve greater collateral efficiencies within their listed businesses as well as across their listed and OTC businesses.

Target your hedge and be ready for developments in any sector

Eurex Exchange features one of the world’s most extensive product ranges which spans nine asset classes. Our broad offering of equity index products, which includes futures and options on all major sectors of the European economy, means that as market trends take shape, investors get on-demand access to all of our hedging tools–on one convenient platform–just as soon as they need it.

For more information on Eurex Exchange sector derivatives, visit our website or contact us.

Sales

Murat Baygeldi

Senior Vice President | Equity & Index Derivatives Sales

11 Westferry Circus, 3nd Floor, Canary Wharf
London E14 4HE

T +44 (0)207 862 7230

 
 

Arun Leyhal

Eurex Frankfurt AG | Equity & Index Derivatives Sales

11 Westferry Circus, 3nd Floor, Canary Wharf
London E14 4HE

T +44 (0)207 862 7248

 
 

Christine Heyde

Eurex Frankfurt AG
Equity and Index Product Research and Development

Mergenthalerallee 61
65760 Eschborn

T +49-69-211-1 56 98