Eurex to Launch Options on Euro-BTP Futures from 2nd October

Eurex Exchange, a global derivative exchange and part of Deutsche Börse Group, has decided to introduce options on euro-BTP futures as of the 2nd October 2017, according to the press release published today.

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This will provide market participants with an efficient and cost-effective instrument that extends hedging opportunities in the Italian interest rate market. During the market launch of the product, Eurex will offer a special market-making program to incentivize order book Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term. The Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term will provide liquidity from day one of the launch. The minimum quote size for market makers on-screen and minimum block size is 100 lots.

The group's BTP products are most popular and liquid instrument on the market and have been heavily traded on the exchange since their inception. Its product suite comprises euro-BTP futures, short-term euro-BTP futures and mid-term euro-BTP futures, and they have generated more than 135 million contracts since their inception. ADV currently stands at 120,000 contracts and open interest stands at 370,000. The Italian government bond futures are often used as a proxy for peripheral European bond exposure.

Mehtap Dinc, incharge of product development and member of the Eurex executive board, said: "By adding options on BTP futures, Eurex is now offering a complete suite of BTP derivatives which support our market participants to navigate through volatile times. Especially buy-side clients have expressed their interest in listed options."