In the world of finance, certain platforms play vital roles in shaping the global economy. Among these, the Eurex Exchange stands out as a key player.
Eurex Exchange is the world’s largest futures and options market for European-based derivatives. It was established in 1998 and is based in Frankfurt, Germany.
They operate in 700+ locations worldwide electronically and are responsible for clearing and settling contracts.
They settle more than 1.6 million contracts annually which makes it one of the most liquid exchanges in the world. It operates in 19 countries worldwide and has 200+ members, making it one of the largest exchanges in the world.
EUREX trading strategies
- Why trade the DAX? (How to trade it)
- Seasonal Trading Strategy For DAX 40 And German Stocks (Rules, Setup, Backtest, Performance)
- Why trade the Euro Stoxx 50? (How to trade it)
- The Santa Claus Rally in DAX 40 and Euro Stoxx 50 (End of year rally)
- Trading the futures expiration week in DAX 40 and Euro Stoxx 50
- Trading the futures expiration week in Euro Bonds (FGBL)
- Trading the week after futures expiration in DAX 40
- Trading the week after futures expiration in Euro Stoxx 50
- Trading the week after futures expiration in Euro Bund
Here you can find more than 200 trading strategies similar to the above strategies.
What Products Are Traded on Eurex?
The Eurex Exchange is a major financial trading platform that offers a multitude of products for various investment interests. From the equity market, you’ll find stocks from some of Europe’s largest companies.
For those interested in the bond market, Eurex also trades European bonds. On top of these, the exchange offers a range of stock indexes. This means traders can invest in a broad market segment rather than individual stocks.
Eurex is perhaps most famous for its derivatives market. Here, investors can trade products that derive their value from an underlying asset, such as stocks or bonds.
Is Eurex a Regulated Exchange?
Yes, the Eurex Exchange is indeed a regulated exchange. It operates under strict rules and regulations to ensure transparency and fairness.
Eurex Clearing AG, which is part of the Eurex Exchange, has been authorized as a Central Counterparty (CCP) under the European Market Infrastructure Regulation (EMIR).
This approval demonstrates that Eurex meets the high regulatory standards set by the European Union. In addition to this, Eurex offers a variety of futures products that are approved under the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC).
This means these products can be traded directly from terminals located in the U.S. Thus, Eurex’s operations are overseen by multiple regulatory bodies, supporting its credibility in the financial world.
Is Eurex Part of Deutsche Boerse?
Yes, Eurex is indeed a part of Deutsche Börse AG. This relationship dates back to 2012 when Deutsche Börse took full ownership of Eurex by purchasing all the shares held by SIX.
This move was significant as it brought one of the world’s largest futures and derivatives exchanges under the influence of Deutsche Börse. This merger has allowed for increased efficiency and streamlined operations, benefiting both traders and investors.
Now, as a wholly-owned subsidiary of Deutsche Börse, Eurex plays a crucial role in the parent company’s portfolio, contributing to its position as a global player in the financial markets.
So, when you’re trading on Eurex, you’re part of a larger, reputable financial network.
Who Owns Eurex?
Eurex, a prominent player in the global derivatives market, is currently owned by Deutsche Börse Group AG. This ownership came into effect when Deutsche Börse purchased all of Eurex’s shares, making it a wholly-owned subsidiary.
In addition to operating one of the world’s largest derivatives exchanges, Eurex also owns and runs one of the most significant derivatives clearing firms in Europe.
This gives it a strong position in the financial marketplace. Being part of the Deutsche Börse Group, a leading stock exchange operator, not only adds to Eurex’s credibility but also enables it to offer a wider range of services and products.
The involvement of a reputable company like Deutsche Börse adds stability and reliability to Eurex as a financial platform. This, in turn, attracts more investors and traders to participate in its markets.
History of” Eurex
Eurex came to life in 1998, created by Deutsche Börse AG and the SIX Swiss Exchange. This was a time when old-school trading was being replaced by digital systems. Eurex was ahead of the curve, offering all-electronic trading.
Fast forward to 2012, and Deutsche Börse AG bought all the Eurex shares from SIX. This made Deutsche Börse the only owner of Eurex.
Eurex is mostly about trading derivatives. It mostly clears and settles trades in various products. These include stock indexes, interest rate derivatives, equity options, and equity index futures.
What Collateral Does Eurex Accept?
Eurex accepts four types of currency: Euros (EUR), Swiss Francs (CHF), US Dollars (USD), and British Pounds (GBP).
So, when you’re trading with Eurex, you should know they’ll ask for cash in one of these currencies to cover any risks during your trades. This is their way of making sure everything goes smoothly. Since it’s based in Europe, Eurex primarily deals in Euros and Swiss Francs.
The US Dollar serves as a backup currency for the exchange, providing more flexibility to traders and investors worldwide. Additionally, GBP is also accepted by Eurex – which offers a wider range of options for traders.
Top Asset Classes Traded on Eurex
Here is a list of some of the top asset classes traded on Eurex:
- Equities: As mentioned earlier, Eurex provides a platform for trading stocks of some of Europe’s largest companies.
- Bonds: European bonds are also available for trading on this exchange.
- Stock Indexes: Traders can invest in a broad market segment by trading stock indexes instead of individual stocks.
- Derivatives: Eurex is well-known for its derivatives market, offering investors the opportunity to trade products that derive their value from an underlying asset.
For clearing and settlement services, Eurex also offers products in the following asset classes:
- Interest rate derivatives
- Equity derivatives
- Equity index derivatives
- Dividend derivatives
- Volatility derivatives
- ETF & ETC derivatives
- Cryptocurrency derivatives
- Commodity derivatives
- FX derivatives
When Did Eurex Start?
Back in 1998, Eurex was founded as a result of the merging of the German and Swiss derivatives exchanges. The Deutsche Börse AG and SIX Swiss Exchange created this new entity to be an electronic trading platform for derivatives in Europe.
Since then, Eurex has evolved into one of the world’s leading derivatives exchanges, offering a wide range of products and services to traders and investors globally.
In conclusion, Eurex is a regulated exchange that operates under the umbrella of Deutsche Börse AG. It offers a wide range of products and services in various asset classes, making it an attractive platform for traders and investors worldwide. With its strong regulatory oversight and ownership by a reputable company like Deutsche Börse, Eurex is still growing and evolving, providing a reliable and efficient marketplace for financial activities.