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

The new options will provide market participants with the flexibility to navigate through volatile times.

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. The market makers 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.”

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