Monday, August 23, 2010

EUREX Builds Presence in Asia

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

business mix.

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

and uncertainty.

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

outside India.

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.

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