The earnings report of Deutsche Börse reveals that the company is working on delivering FX futures to the market. The Frankfurt-headquartered firm announced a set of positive results earlier on Tuesday.
The Eurex exchange which includes the German company’s financial derivatives segment, the FX-focused 360T subsidiary, and the commodities unit called EEX is preparing to roll out a couple of new products.
Rolling Spot Futures & Classic Futures
Eurex will be offering two types of futures contracts: Rolling Spot Futures and Classic Futures. The first liquidity providers for the new products have already been acquired.
The contracts have been in high demand in the institutional segment for a time, and the addition of the products is welcome news for current and prospective clients of Deutsche Börse.
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Market participants will be able to use the futures products for OTC foreign exchange trading. The completion of the initial clearing service trial is expected sometime next year.
The central order book product for 360T is still in an introductory phase. The initial proof-of-concept trials have been completed and passed.
In addition, 360T has launched a product which delivers spot market data for foreign exchange transactions. Deutsche Börse shares that the product has been very well received by market participants. The new service was developed in conjunction with the company’s Data segment.
360T posted a positive earnings report with revenues rising 26 percent when compared to last year. The report was influenced by increased volatility across emerging markets FX over the summer. The higher margins which the company generated led to a healthy rise in profits.
Earlier this year, Deutsche Börse acquired GAIN Capital’s GTX unit, closing one of the biggest deals in the industry this year. The NY-based company used the funds from the sale to commit to a massive buyback of shares earlier this month.