05.28.2021

Eurex Extends EnLight With FX Derivatives

05.28.2021
Electronic Trading Grows in FX

Eurex EnLight, the fully integrated RFQ platform, already available for most equity, equity index and fixed income options and futures tradable on Eurex, has been further extended. We spoke to Andre Eue, Head of Market Development at Eurex, and Joshua Hurley, FX Sales and Businesss Development at Eurex, about the enhancements.

What exactly is happening on Eurex EnLight and when?

Shortly after the migration of our FX products onto the Eurex T7 platform on 31 May 2021, we will also expand our integrated T7 RFQ mechanism to cover our growing FX market.

Why were FX derivatives chosen as the next products to trade on Eurex EnLight?

Since the FX market continues to grow, we want to make sure that clients are able to source the most competitive liquidity and benefit from the full suite of execution models. Request for Quotes (RFQ) is a common execution protocol in wider FX markets, and clients are also trading in large sizes so it makes complete sense to also offer this for FX and provide execution options that complement the orderbook. We see greater volumes coming from this enhancement since liquidity providers are also keen to expand their avenues to face clients.

Will the Liquidity Provision rebate also be extended for FX derivatives?

Yes, Liquidity providers will continue to benefit from rebates for their Eurex EnLight activities, enabling them to focus on providing clients the best possible prices.

Are any actions required from our customers?

No, all Eurex members have direct access to Eurex EnLight via the user interface. No additional contracts or setups are required to use the fully electronic straight-through processing system, which also provides users with best execution reports. If liquidity providers want to appear in the Eurex EnLight responder list, they can upload an appropriate trader ID with just a few clicks. It is also worth noting that Eurex EnLight is a fully integrated on-exchange, off-book mechanism that can be used free of charge.

What can we expect next on Eurex EnLight?

Since March, all equity and equity index futures and options have been available on Eurex EnLight.  FX was the next step. The complete range of fixed income futures and options will be available later this year.

With the second T7 release towards the end of 2021, we will include the staging of RFQs. This will greatly reduce the implementation effort for EMS and OMS systems. In early 2022, we will also deliver an efficient solution for delta-neutral trading of single stock options, as well as trade at index close capabilities, which are particularly relevant for MSCI futures trades.

Source: Eurex

Related articles

  1. Nasdaq has ambitions to launch futures on carbon removals as the market grows.

  2. Anticipated Ethereum Merge has increased demand to hedge risk on a regulated venue.

  3. From The Markets

    CME Launches Ether Options

    Interest in Ether derivatives is surging ahead of the upcoming Ethereum Merge.

  4. Markets may close during the mourning period and the Bank of England has delayed setting interest rates.

  5. European ETFs Continue Record Growth

    Volatility and a higher perceived risk for the future have increased the need for hedging