Eurex Reports 21% Drop in July Trading Activity

European cash and derivatives exchange group, Eurex, reported negative trading activity for the month of July from figures reported in June.  The multi-asset trading venue saw a drop in activity across its products. The move comes on the back of tough operating conditions as traders look to withstand an unstable trading environment.

German-based Eurex Exchange saw an overall reduction in operating metrics. In July 2014, the exchange’s international derivatives unit recorded an average daily volume of 6.3 million contracts, a decrease from June figures of 8 million and July 2013 of 6.8 million. The trading venue saw the highest drop in its interest rate product range, Eurex Exchange’s interest rate derivatives segment totaled 29.5 million contracts, a 22% decrease YoY.

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Eurex offers a wide selection of derivatives contracts, with over 1,900 products available. In 2007, the exchange acquired US options exchange, the International Securities Exchange (ISE). In July, there were 2.1 million contracts traded from the total of 6.3 million at ISE, and a total of 47.1 million traded throughout the month at the US venue.

Eurex joined its peers in the growing currency derivatives markets last month, on the 7th of July the bourse launched a number of FX futures contracts. The new contracts are expected to be widely traded as they offer users physical settlement under Eurex Clearing, the exchange’s clearing solution acts a central counterparty and offers delivery though CLS.

Thomas Book, CEO of Eurex Clearing, commented about the solution in a statement: “Our FX offering will have a unique differentiation to other offerings. Eurex Clearing as central counterparty of all trades will remain the counterparty until the final settlement of trades, providing full safety for both sides of the transaction.”

On a positive note, the Exchange saw an uptake in annual trading volumes on its benchmark equity index derivatives contract, there was a total of 48.7 million contracts traded, an 8% increase from  44.8 million traded a year earlier. The most popular contract is the firm’s future on the EURO STOXX 50® Index with 20.0 million contracts.