Eurex AG, Europe’s largest derivatives exchange and the
second largest derivatives exchange in the world, is making its
way in Asia to take advantage of opportunities “in one of the
fastest growing regions in the world.”
“We’re expecting double-digit growth in Asia in the next two to
three years,” said Michael Peters, member of Eurex Executive
Board at a press briefing held Monday in Fullerton Hotel.
Currently, Asia contributes only 2-3 per cent of Eurex’s total
The derivatives exchange, co-owned by Deutsche Borse AG and
SIX Swiss Exchange AG, said they saw encouraging signs from
the region as traded volume by its members from Asia tripled in
2009 compared with 2008. In May this year, a new monthly
record of 2.8 million contracts were traded by Asian members in
light of the Europe debt crisis.
Derivatives or futures market usually thrives on period of volatility
For 2010, Eurex is set to launch a derivatives product based on
South Korea’s KOSPI 200 Index on August 30. This will allow
investors to trade KOSPI 200 derivatives even after Korean
market has closed, and will extend to European and American
trading hours on the same day.
“Eurex and KRX expect trading volumes during after-hours to
grow approximately 2 per cent over the next three or four years,
creating a liquid and attractive trading opportunity for market
participants,” Eurex said in a statement.
Currently, KOSPI 200 option is the most liquid exchange-traded
derivatives product in the world in terms of trading volume, with
average daily volume of 13.3 million contracts as at 1Q2010.
Also in the pipeline is futures and options SENSEX index scheduled
to be launched on 4 October 2010. The product is in
partnership with India’s Bombay Stock Exchange Index. With
this, Eurex is the first exchange to list options on an Indian index
Here in Singapore, Eurex and SGX are partnering to launch SGX
EURO STOXX 50 index futures and options on futures for the
first time in Asia. The US-dollar denominated index is expected
to be launched on the second half of 2010, subject to Monetary
Authority of Singapore approval.
Eurex and SGX will also jointly market and promote the index as
part of the collaboration efforts between the two exchanges.
Same with other index in the region, market participants will be
able to manage their European exposures during Asian trading
“We look at Singapore as a key regional hub due to its favourable
regulatory environment. It is also attractive due to its strategic
geographic location which will allow us to monitor activities in
other Asian markets as well,” said Peters.
Eurex’s Singapore office is responsible for the Middle East,
India, Australia, New Zealand and Singapore. The exchange
also has offices in Tokyo, Beijing, Taipei and Hong Kong.