Eurex Reports Weak Derivatives Demand for July

The OTC market remained strong year-on-year, but slumped dramatically compared to June.

Eurex, a subsidiary of the Deutsche Börse Group, has published its monthly volumes today, showing a decline across all classes of derivatives products in July on a year-on-year basis.

The exchange pointed out that the European equity derivatives took the worst hit with a year-on-year decrease of 23 percent in the monthly volume.

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For the entire derivatives market, including European equity index derivatives and European interest rate derivatives, Eurex witnessed a total year-on-year fall of 13 percent with a monthly volume of €1.12 billion, compared to €1.3 billion in the same month the previous year.

According to the exchange, the ongoing uncertainty in dividend pricing is a challenge in the market.

Notably, in June, the European exchange reported excellent figures almost across all sectors. Though, Month-on-month, the total derivatives market decreased by 41.6 percent.

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OTC Market Remained Positive Overall

However, coming to the over-the-counter (OTC) clearing market, most of the reported numbers were positive for the month.

The average daily cleared volumes dropped by 13 percent in July to €99 billion, compared to the previous year’s same month’s figure of €114 billion, because of the reduced volumes in Forward Rate Agreements. 

The notional outstanding volumes for the OTC market increased by 53 percent, while the interest rate swaps remained a solid performer with an uptick in the average daily cleared volumes by 27 percent year-on-year.

In the repo market, Eurex’s business grew to €86.9 billion of average term-adjusted volume, growing 37 percent year-on-year.

The Eurex commodities market, however, echoed the derivatives segment and witnessed declines across all major product suites.

Meanwhile, Eurex is going to launch options on Euro-Buxl Futures (OGBX) next month, thus, offering hedging and trading opportunities at the very long end of the interest rate curve.

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