World Crypto Global
- Written by: Damian Chmiel
- Thu, 18 Jul 2024
- Israel
Europe'sleading derivatives exchange, is set to broaden its cryptocurrency offeringswith the introduction of FTSE Ethereum Index Futures and Options on August 12,2024. This move follows the successful launch of Bitcoin derivatives on Eurexin 2023, marking another step in its strategy to provide regulated access tomajor cryptocurrencies.Eurex to Launch EtherFutures and Options, Expanding Crypto Derivatives SuiteThe newEthereum-based contracts will be available in both euros and US dollars, witheach contract representing 10 ETH, valued at approximately $35,000. Thesecash-settled derivatives will expire on the last Friday of each month, offeringmonthly and quarterly maturities. Additionally, weekly expiring options will beavailable to provide traders with more flexibility."Asone of the world's leading CCPs, Eurex offers trading on a regulated exchangeand is therefore the right partner to enter the crypto space for institutionalclients," Randolf Roth, a member of Eurex's Executive Board, commented. Welook forward to expanding our offering in crypto derivatives together with FTSERussell and Digital Asset Research for our clients.Theunderlying FTSE Ethereum Index, developed in collaboration with Digital AssetResearch (DAR), adheres to EU Benchmark standards. The final settlement ratefor these contracts will be determined using a volume time-weighted averageover a 15-minute period prior to fixing.Thisexpansion comes as Ethereum, with a market capitalization of around $400billion, continues to attract significant institutional interest. This is alsoa natural step following the success of a similar instrument for the oldestcryptocurrency, Bitcoin.Eurex's BTC derivatives, launched in April 2023, haveseen over 100,000 contracts traded, equivalent to more than $3.5 billion innotional value.Inassociation with the experts at Digital Asset Research we have established anindustry standard for assessing underlying digital asset and exchange inclusion,Kristen Mierzwa, Head of Digital Assets at FTSE Russell, an LSEG business,commented. We have applied this vetting methodology to offer indicesreflective of the real investable market.Last year,Eurex became the first European exchange to introduce crypto index futures withthe launch of the FTSE Bitcoin Index in both USD and EUR. It is important tonote that Eurex has already been listing a variety of othercryptocurrency-related instruments in the past. For instance, in 2021, the exchangeexpanded its offerings to include Bitcoin ETNs.Eurex Trading VolumesIn 2023,Eurex saw a slight decrease of 2% in its total trading volume, which amountedto 1,915.1 million contracts. This reduction was largely due to a 9% drop inindex derivatives, which totaled 871.7 million contracts. Conversely, the OTCClearing sector saw an increase, with average daily cleared volumes rising by10% to 185 billion, up from 169 billion. The category of GC Poolingexperienced the most significant growth, with volumes surging by 142% to reach158.9 billion.Recently,Eurex appointed Robbert Booij from ABN Amro as its new CEO. Booij, previouslyacquainted with Eurex through his role at ABN AMRO Clearing Bank N.V.,expressed his familiarity and honor in having served as the Chairman of theEurex Exchange Council.This article was written by Damian Chmiel at www.financemagnates.com.
