Santander Expands Listed FX Derivatives Business to Eurex

Santander Expands Listed FX Derivatives Business to Eurex

Time Stamp: May 22, 2024 7:11 AM
Santander Expands Listed FX Derivatives Business to Eurex PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Santander
Asset Management has expanded its listed FX derivatives business to Eurex,
supported by Banco Santander and Deutsche Bank, as part of a growing trend
towards centrally cleared FX futures and options.

Interest is
clearly seen in the growth of Eurex’s FX derivatives volumes, which have nearly
tripled since 2020, with a 16% increase in Q1 2024 compared to Q1 2023.

The Spanish
asset manager’s decision to trade and clear listed FX derivatives on Eurex
highlights the increasing demand for centrally cleared FX futures and options.
Market participants increasingly turn to these instruments to mitigate
counterparty credit risk, navigate uncleared margin rules (UMR), and optimize
capital costs.

By joining
Eurex’s FX ecosystem, Santander Asset Management aims to benefit from low
exchange fees and regulatory certainty within the European Union.

“This
is a great addition on our way to becoming the leading FX liquidity hub in
Europe,” said Jens Quiram, the Global Head of FIC Derivatives and Repo Sales at
Eurex.

Santander
Asset Management’s expansion plans extend beyond FX futures, as the firm also
intends to establish an FX options business. In collaboration with Deutsche
Bank, Santander Asset Management has already traded the first-ever FX options
block trade on the exchange .

“In
addition to our engagement in FX futures we actively collaborate with multiple
FX dealers to explore the trading of FX options at Eurex,” Imanol Urquizu, the Head
of Derivatives at Santander Asset Management, added. “Integrating FX futures
and FX options within the Eurex ecosystem unlocks operational efficiencies and
enhances our risk netting capabilities.”

Eurex’s FX Derivatives
Volumes Surge 16% in Q1 2024

Eurex’s FX
derivatives volumes have witnessed visible growth in recent years. In 2023,
over 1.7 million contracts were traded on the exchange, nearly tripling the
volume compared to 2020 when 600,000 contracts were traded. The first quarter
of 2024 saw a 16% increase in traded contracts, reaching 586,000 compared to
the same period in 2023.

“Trading FX
on Eurex enables clients to benefit from the efficiencies of a listed
derivatives market, and this is a prime example of how Deutsche Bank partners
with clients and trading venues to provide liquidity and solutions in the
evolving FX market,” Mario Muth, the Global Head of Platform and Listed
Derivatives Sales and Head of Fixed Income Market Structure at Deutsche Bank,
concluded.

Eurex’s
good performance was also confirmed in a report from earlier this year when the
derivatives exchange showed its volumes for January 2024. They had grown by 6% compared to the previous year.

This year,
Eurex also changed its Chief Executive Officer. At the end of January, Robbert
Booij became the new CEO, replacing Michael Peters, who had held his position
since July 2020 and plans to retire in September.

Santander
Asset Management has expanded its listed FX derivatives business to Eurex,
supported by Banco Santander and Deutsche Bank, as part of a growing trend
towards centrally cleared FX futures and options.

Interest is
clearly seen in the growth of Eurex’s FX derivatives volumes, which have nearly
tripled since 2020, with a 16% increase in Q1 2024 compared to Q1 2023.

The Spanish
asset manager’s decision to trade and clear listed FX derivatives on Eurex
highlights the increasing demand for centrally cleared FX futures and options.
Market participants increasingly turn to these instruments to mitigate
counterparty credit risk, navigate uncleared margin rules (UMR), and optimize
capital costs.

By joining
Eurex’s FX ecosystem, Santander Asset Management aims to benefit from low
exchange fees and regulatory certainty within the European Union.

“This
is a great addition on our way to becoming the leading FX liquidity hub in
Europe,” said Jens Quiram, the Global Head of FIC Derivatives and Repo Sales at
Eurex.

Santander
Asset Management’s expansion plans extend beyond FX futures, as the firm also
intends to establish an FX options business. In collaboration with Deutsche
Bank, Santander Asset Management has already traded the first-ever FX options
block trade on the exchange .

“In
addition to our engagement in FX futures we actively collaborate with multiple
FX dealers to explore the trading of FX options at Eurex,” Imanol Urquizu, the Head
of Derivatives at Santander Asset Management, added. “Integrating FX futures
and FX options within the Eurex ecosystem unlocks operational efficiencies and
enhances our risk netting capabilities.”

Eurex’s FX Derivatives
Volumes Surge 16% in Q1 2024

Eurex’s FX
derivatives volumes have witnessed visible growth in recent years. In 2023,
over 1.7 million contracts were traded on the exchange, nearly tripling the
volume compared to 2020 when 600,000 contracts were traded. The first quarter
of 2024 saw a 16% increase in traded contracts, reaching 586,000 compared to
the same period in 2023.

“Trading FX
on Eurex enables clients to benefit from the efficiencies of a listed
derivatives market, and this is a prime example of how Deutsche Bank partners
with clients and trading venues to provide liquidity and solutions in the
evolving FX market,” Mario Muth, the Global Head of Platform and Listed
Derivatives Sales and Head of Fixed Income Market Structure at Deutsche Bank,
concluded.

Eurex’s
good performance was also confirmed in a report from earlier this year when the
derivatives exchange showed its volumes for January 2024. They had grown by 6% compared to the previous year.

This year,
Eurex also changed its Chief Executive Officer. At the end of January, Robbert
Booij became the new CEO, replacing Michael Peters, who had held his position
since July 2020 and plans to retire in September.

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