Ferscha: Record open interest builds a strong foundation for sustainable growth
The international derivatives market Eurex continues to expand its position as the world's largest derivatives exchange with record open interest on the exchange. Eurex announced on Friday that exchange-wide open interest had risen to 76.4 million contracts, an increase of 22 percent on the same month in the previous year and the highest level ever on the exchange.
Total open interest for all major product segments was at record levels. The Fixed Income Derivatives segment set a new total record, with over 4.6 million contracts in open interest for the first time. The Euro-Bund Future, the most heavily traded contract on the exchange, set a new open interest record of 1.4 million contracts, as did the option on the Euro-Bund Future, with an open interest of 1.5 million contracts.
Equity options also showed particularly strong growth, with a record open interest of 49.3 million contracts. Open interest in the regional equity option segments was also at a record high - with new records set in German, Dutch and Italian equity options. Open interest among equity index derivatives also recorded its highest ever level of 22.4 million contracts, with 14.6 million open positions in options on the DJ Euro STOXX 50. Open Interest in pan-European sector index derivatives was also at record levels.
Open interest represents the number of open positions in a futures or option contract and is regarded as an important indicator of the sustainable future growth of a derivative product.
"These record open interest levels show that the market supports our strategy of increased geographical distribution of our benchmark products, particularly into the U.S.," said Rudolf Ferscha, CEO of Eurex. "This continuing increase in open interest builds a strong foundation for sustainable growth in the future. Furthermore, Eurex's core benchmark products have
shown consistent strength in trading volumes, despite the fact that volatility in all relevant markets is at historically low levels; volatility in euro interest rates has halved, and equity volatility has come down by two thirds over the past year. Our continued growth during the last 12 months underscores the progress we are making in expanding regional distribution as well as in attracting new customer groups."