As of 1st November, Eurex has breathed new life into its EURIBOR derivatives segment. This revival is accompanied by the commencement of its STIR Partnership and Liquidity Provider Programs, enjoying robust support from key market players. The revitalisation of Eurex’s EURIBOR Futures and Options is a significant step towards fulfilling Eurex’s aspiration to establish itself as the ‘Home of the Euro Yield Curve’.
New Liquidity Provider Program
A fresh liquidity provider program is set to enhance on-screen liquidity in several products:
- Three-Month EURIBOR Futures (Product ID: FEU3)
- Three-Month Euro STR Futures (Product ID: FST3)
- Options on Three-Month EURIBOR Futures (OEU3)
- One- to Four-Year EURIBOR Mid-Curve Options Contracts (OEM 1-4)
Additionally, Eurex is offering a temporary fee waiver until 31st December 2024 on all principal transactions (P/M Account) in Eurex STIR futures and options.
Partnership Program
Eurex’s relaunch of its EURIBOR segment has been backed by a total of 19 partner banks that have registered for the new STIR Partnership Program. The ten most active program participants stand to gain a significant stake in the economics of the STIR offering from Eurex Clearing on a permanent basis. Moreover, these clients will also be included in the governance and committee structure of Eurex Clearing.
Benefits for Customers
Customers stand to gain numerous operational efficiencies from this relaunch. Most notably, they will benefit from Eurex’s portfolio-based Prisma margining methodology. This approach is designed to optimise margin offsets between STIR and LTIR portfolios, as well as across OTC interest rate swaps and listed interest rate products.
Milestones
Since its launch on 23rd January 2023, more than 760,000 contracts have been traded in Three-Month Euro STR (€STR) Futures. This marked a significant milestone in establishing €STR as the new benchmark risk-free rate. These money market futures provide a listed, centrally cleared, and cash-settled solution for trading or hedging €STR, complementing Eurex Clearing’s €STR Overnight Index Swap offering.