Derivatives Newsletter

Derivatives Newsletter intro

Issue: March 2018

Welcome to the latest edition of our Financial Derivatives newsletter.

Euronext starts 2018 with particular excitement, as this year we celebrate the 35th anniversary of the AEX Index®, as well as the 40th anniversary of the Amsterdam Options Exchange.

We are furthermore thrilled to begin 2018 with the launch of the new  Morningstar Eurozone 50 Index future, offering our market participants a competitive alternative to gain exposure to the price movements of Europe’s 50 largest stocks via a single contract.

In 2018, we have also relaunched our Request For Cross (RFC) functionality with MiFID II transparency enhancements and an updated uncrossing algorithm. The RFC facility opens up the conventional bilateral crossing industry to multilateral liquidity via an open auction mechanism with full MiFID II transparency.  

And there is more to come! Not the least of which is our continued work on the rollout of Euronext’s new state of the art technology platform Optiq®. The third phase of the programme, covering the Order Entry Gateway (OEG) and Matching Engine (ME) upgrades for Derivatives Markets, will begin later this year.

Of course, we cannot forget about 2017. Our new options on German underlyings, launched last October, have steadily increased in popularity. That very same month, we were also honoured to receive the award for Outstanding Derivatives Trading Venue from The Trade, an award which commended our 2017 Agility for Growth initiatives, alongside the updates to our trading technology, and the expansion of our index futures product suite for US investors.

The Trade also noted the increase of our year-on-year average daily derivatives trading volume: In the year 2017, the overall average daily volume on Euronext derivatives stood at 550,106 contracts (+12.0% compared to 2016) and open interest was up at 14,713,256 contracts at the end of December 2017 (+27.8% compared to the end of December 2016). In addition, Euronext reached a five year record on open interest at 21,064,464 contracts on 14 December 2017, just before the December expiry.

If you have comments on anything you read in this newsletter, have suggestions for new products you’d like to see come to market, or would just like to catch up on Derivatives developments at Euronext in general, please get in touch with our team – we’re always happy to hear from you.

We hope to see you at FOW Trading Amsterdam on 7 March!

Charlotte Alliot and Halima Butt
Co-Heads, Financial Derivatives, Euronext