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Round-up: our Equity Index segment in July

Release date: 08 Aug 2018 | Eurex Exchange, Eurex Clearing

Round-up: our Equity Index segment in July

Market Briefing

Without knowing in how far temperatures and trading volumes are negatively correlated, Eurex notes that, while the month of July was dominated by extreme heat in large parts of Europe, trading activity was rather modest. Despite the typically more moderate holiday season, other reasons could have played a role:

The recent alignment between the EU and the U.S. not to impose further tariffs, e.g. for European cars and American whiskey, has lowered the risk of a trade-war and brought equity volatility levels (as measured by the European volatility benchmark "VSTOXX®") back to below 15%. This reduced the overall hedge demand for equity-related products and resulted in the lowest monthly derivatives volumes in those products in 2018. On the upside, compared with July 2017, however, Equity & Index Futures and Options had an increase of 24% with single name products and in particular products on banks, as well as dividend products showing an uptick.

The newly listed month-end options on the EURO STOXX 50® recorded nearly 40,000 contracts in the first month.

In the German index market, Mini-DAX® Futures gained further ground in July by reaching a higher volume share in relation to the bigger DAX® Futures. Certainly worth monitoring over the next months is the stricter ESMA regulation for Contracts for Difference (CFDs), which starts in August 2018 and is expected to further incentivize clients away from CFDs into the Mini-DAX® Futures.

Ralf Huesmann, Senior Vice President, Equity and Index Product Research & Development

Facts & figures

News section

As institutional investors increasingly shift their focus towards emerging markets, and in particular towards the Korean Peninsula, the South Korean market is gaining more and more attention. We have now published a paper illustrating how Eurex creates synthetic exposure to the MSCI Korea Index and showing how this exposure could be achieved at substantially below 1 percent tracking error from 2012 to 2017.

From the return of volatility and non-financial risks to the influence of artificial intelligence and data analytics: we spoke to Thomas Laux, Member of the Executive Board and Chief Risk Officer at Eurex Clearing, about current and future topics in risk management.

To support the increasing demand of Eurex clients for trading on a global marketplace, we will offer extended trading hours for select liquid futures on Eurex Exchange starting from December 2018. With Eurex extended trading hours, market participants will be able to extend their business opportunities into Asian time zones.


Save the date: Derivatives Forum Stockholm on Thursday, 12 September 2018

In partnership with Danske Bank and SEB we will be holding our Derivatives Forum 2018 in Stockholm. Industry experts will focus on the key issues that will shape the derivatives industry of the future. The conference features panels on product innovation across asset classes, fintech and geopolitical issues such as Brexit. There will also be a dedicated product innovation session for equity index.