Eurex OTC Clearing Continues to Rise in May, Despite Lower Volatility

by Celeste Skinner
  • Eurex did see a drop in the number of traded derivatives contracts in May.
Eurex OTC Clearing Continues to Rise in May, Despite Lower Volatility
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As market Volatility lessens an increasing number of trading providers are reporting declines in their monthly trading volumes. This week, Deutsche Börse Group announced the trading volumes for Eurex, which actually achieved mixed volumes for the month.

On a yearly comparison, whilst May did see a drop in the number of traded derivatives contracts at Eurex, OTC Clearing at Eurex showed strong yearly growth. In particular, the notional outstanding volumes for OTC clearing in May 2020 was €18.96 trillion, which represents an increase of 24 per cent when measured against the same period of the previous year.

Not only is the notional outstanding OTC clearing volumes higher on a yearly comparison, but Eurex did also see an uptick in clearing even on a monthly comparison. Specifically, clearing volumes increased by 5.7 per cent, up from €17.94 trillion in April of 2020.

Trading on Eurex Exchange

Although OTC clearing increased on both a monthly and yearly comparison, the number of European equity index derivative contracts traded via the Eurex Exchange fell across the board.

During May, the number of traded contracts for European equity index derivatives was 66.1 million. This represents a decline of 5.7 per cent from the previous month, as April of 2020 posted a volume of 70.1 million contracts. May’s trading volume has also fallen by 13 per cent year-on-year.

The number of European interest rate derivative contracts traded during May, however, was actually higher than that of the previous month, with a total 36.2 million contracts traded during the month. This is higher by 34.6 per cent than April 2020. Nonetheless, it is still down by 28 per cent on a yearly comparison.

The largest yearly drop for financial derivatives was posted by European equity derivatives, with a total of 19.3 million contracts. Against the trading volume achieved in May of 2019, last month’s volume has fallen by 58.0 per cent. Compared to April, trading has also dropped by around 9.0 per cent.

As market Volatility lessens an increasing number of trading providers are reporting declines in their monthly trading volumes. This week, Deutsche Börse Group announced the trading volumes for Eurex, which actually achieved mixed volumes for the month.

On a yearly comparison, whilst May did see a drop in the number of traded derivatives contracts at Eurex, OTC Clearing at Eurex showed strong yearly growth. In particular, the notional outstanding volumes for OTC clearing in May 2020 was €18.96 trillion, which represents an increase of 24 per cent when measured against the same period of the previous year.

Not only is the notional outstanding OTC clearing volumes higher on a yearly comparison, but Eurex did also see an uptick in clearing even on a monthly comparison. Specifically, clearing volumes increased by 5.7 per cent, up from €17.94 trillion in April of 2020.

Trading on Eurex Exchange

Although OTC clearing increased on both a monthly and yearly comparison, the number of European equity index derivative contracts traded via the Eurex Exchange fell across the board.

During May, the number of traded contracts for European equity index derivatives was 66.1 million. This represents a decline of 5.7 per cent from the previous month, as April of 2020 posted a volume of 70.1 million contracts. May’s trading volume has also fallen by 13 per cent year-on-year.

The number of European interest rate derivative contracts traded during May, however, was actually higher than that of the previous month, with a total 36.2 million contracts traded during the month. This is higher by 34.6 per cent than April 2020. Nonetheless, it is still down by 28 per cent on a yearly comparison.

The largest yearly drop for financial derivatives was posted by European equity derivatives, with a total of 19.3 million contracts. Against the trading volume achieved in May of 2019, last month’s volume has fallen by 58.0 per cent. Compared to April, trading has also dropped by around 9.0 per cent.

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