EUREX



Eurex is a major futures and options exchange for European benchmark derivatives featuring open and low-cost electronic access globally. Its electronic trading and clearing platform offers a broad range of products and amongst other, operates the most liquid fixed income markets. Eurex was established in 1998 with the merger of Deutsche Terminbörse (DTB, the German derivatives exchange) and SOFFEX (Swiss Options and Financial Futures).

Chronicle

On December 13, 1996 Deutsche Börse AG and Swiss Exchange signed a memorandum of understanding to create a joint trading and clearing system.
Eurex was formed in September 4, 1997 when DTB and SOFFEX officially announced in Bürgenstock/Switzerland to create a joint platform. In 1998 the DTB (Deutsche Terminbörse) and SOFFEX (Swiss Options and Financial Futures Exchange) merged and became Eurex (European Exchange). Since September 1998 members of both exchanges trade by using a joint trading and clearing platform. Therewith both are one of the first exchanges providing access to derivatives markets by using a full electronic trading and clearing platform. Eurex, the futures and options exchange, is a subsidiary of Deutsche Börse AG and SWX Swiss Exchange. U.S. Exchange Holdings, Inc., Eurex Clearing AG, Eurex Repo GmbH and Eurex Bonds GmbH are subsidiaries of the Eurex Frankfurt AG.
Eurex Deutschland is the public law arm of Eurex. Eurex Release 1.0.: The new DTB software generation was installed in the middle of May 1998. The main innovation of this version is the multi-currency clearing facility to accommodate the introduction of SOFFEX products as well as the changes resulting from the Euro and the upcoming launch of currency products. The first released products, apart of those which were assumed by DTB and SOFFEX at Eurex, covered options on Euro-Schatz-Futures, three-month-EURIBOR-Futures, Euro-Buxl-Futures as well as Futures on the Dow Jones Euro 50. In 1998 over 248 Million contracts were traded by 313 registered members at Eurex.
Since 1999 Eurex provides its market participants a graphical user interface for trading. In the course of cooperation between Eurex and Helsinki Exchange Group Ltd. (HEX) new products on Scandinavian Indices and Single Stocks were released. In 1999 Eurex registered a noticeable growth of members (more than 400) and trading volume (around 380 Million traded contracts).
Through the year 2000 Eurex launched more and more options on Single Stock Futures on the Dow Jones EURO STOXX 50. Equally in the next months Eurex enlarges the range of products on futures and options on the Dow Jones EURO STOXX and the Dow Jones STOXX 600 sector indices steadily. For the first time options were tradable on the most liquid U.S. Single Stocks on Eurex. Beside the establishment of futures and options Eurex creates new OTC (over the counter) and clearing sections. Since October 2000 Eurex operates together with institutional market participants two new trading platforms Eurex Bonds and Eurex Repo, for government bonds trading and Repo trading on government bonds.
Through multitude of new products as well as steadily improvement of trading and clearing terms and conditions Eurex achieves a new record turnover: more than 674 Million traded contracts in 2001. A further milestone is the Initiation of trading in options and futures on exchange-traded index fund shares, so-called exchange-traded funds (ETFs) in 2002. In the same year a level of more than 800 Million contracts is reached through the enhanced range of sector products as well as options on more and more single stocks from all of Europe and USA.
With the beginning of 2003 Eurex expands its interest segment products for futures on the reference rate for overnight money, EONIA (European Overnight Index Average). The EONIA future is tradable worldwide from 648 member locations, 96 of them in the USA, making it one of the most important single markets for Eurex. Deutsche Börse AG and SWX Swiss Exchange renewed the contract for their joint derivatives market Eurex ahead until 2014. In December 2003 the limit of one Billion contracts is reached, on the whole, over 1.014 Billion contracts have been traded this year. In February 2004 Eurex started the derivatives exchange Eurex US and enlarged its business model to the trading and clearing of USD-dominated products in the US. With 1.066 Billion traded contracts in 2004 Eurex achieved another record, beating its previous year record contracts.
With the beginning of 2005, Deutsche Börse AG receives 85 percent of the joint venture proceeds, SWX Swiss exchange receives 15 percent. As the Asian market was focussed Eurex and Osaka Securities Exchange signed a memorandum of understanding to verify possibilities of cooperation; Singapore-based traders could now trade directly on the world's largest derivatives exchange Eurex. The range of products is enhanced by the implementation of Volatility Index Derivatives, which is for the first time offered for trading by a European Exchange, as well as the launch of all Single Stock Futures on the Dow Jones Euro STOXX 50, DAX to exclusive securities on Swiss SMI. The trading volume increased again to more than 1.25 Billion contracts.
On 19 April 2006 Andreas Preuß was appointed to CEO of Eurex, he succeeds Rudolf Ferscha as chief executive officer. So called Weekly Options enhanced the product segment, so the band of Equity Derivatives is expanded consequently for short term maturities. The successful launch of Index Futures on the MDAX and the SMIM, as well as Spanish and Swedish underlyings further expand Eurex’s portfolio of Mid Cap products. The efforts for the Asian market make an impact: the first Eurex-connection of a member in Singapore is implemented. From 1 October 2006 MAN Group assumes 70 percent of Eurex US continue proceedings under the name of USFE (US Futures Exchange). In 2006, over 1.5 Billion contracts were traded on Eurex, which made it by far the world’s largest international market organizer for the trading and settlement of futures and options on shares and share indices, as well as of interest rate derivatives. The trading volume and clearing of derivatives market products increases year-on-year: Eurex-customers traded 1.526 Billion contracts, which are 22 percent more than in the previous year (1.248.8 Billion contracts). Sales increased about 19 percent up to 597.8 Million Euros.
On 30 April 2007 Eurex and International Securities Exchange (ISE) announced that they have signed a definitive agreement under which Eurex will acquire ISE for approximately USD 2.8 Billion in cash or USD 67.50 per share. The combination will be implemented by way of a merger and is subject to approval by the holders of a simple majority (50 percent plus one share) of ISE outstanding common stock at a special shareholder meeting to be held as soon as practicable, receipt of regulatory approval by the U.S. Securities and Exchange Commission and other customary closing conditions. ISE’s Board of Directors recommends to shareholders to vote in favour of the transaction.

Official Website : www.eurexchange.com

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