Eurex saw an increase of roughly 5 percent across the board for October 2018, compared to the same period a year earlier in terms of fixed income, according to a Highlights report by Eurex.
In the report, Philip Simons, global head fixed income sales derivatives, funding and financing at Eurex Clearing, delivered a short summary of the exchange’s experiences during the third quarter of 2018.
Starting with fixed income listed business, he noted that. “With the Italian budget recently seen a significant increase in bond yields, roughly 32 basis points within one day and the spread to bunds widened significantly."
He added: “Overall, volumes in short-dated European government bonds have increased significantly year on year. In addition, European inflation came in quite high and this could add additional uncertainty to the fixed income markets.”
He also indicated over-the-counter interest rate derivatives had experienced a record third quarter with over €4-1/4 trillion cleared notional.
He said that gives Eurex a market share roughly of 10 percent in terms of open interest.
Mentioning Brexit, Simons stated: “Brexit has become the foremost topic in most of our members’ minds as a hard Brexit looks increasingly more likely. As a result of that, we have seen a significant uptick in buy-side clients onboarding with us in what many call a ‘no regret’ move where they are now starting to clear their euro business at Eurex.”
He added: “Our partnership programme continues to attract new members and we are very pleased to announce two new partners from the Nordic region, Danske Bank and Nordea.”
“We are very pleased they have chosen to partner with Eurex Clearing and we look forward to working very closely with them on further developing our products and services in the Nordic region.”
