MiFID II: Eurex prepares for the home stretch

The clock is ticking: Only four more months until the biggest market reform
of the last decade kicks off. The Markets in Financial Instruments Directive
(short: MiFID) II will fundamentally re-design Europe’s derivatives markets
and provides strategic opportunities for Eurex, one of the leading derivatives
exchanges and part of Group Deutsche Börse.

Eurex is about to conclude its own preparations and has scheduled the
technical implementation of the new requirements for December. Already this month,
market participants will gain access to a simulation trading environment so that
they have sufficient time to adapt to the new reality.

“The industry currently undergoes the gargantuan task to oblige to the
deadline”, says Randolf Roth, Member of the Eurex Executive Board. “We
support the market to be able to cross the finish line ribbon.”

Eurex already started to introduce services to address the overarching
objectives of MiFID II. The exchange increased the transparency of the
off-book market and supports market participants’ best execution efforts with a new
Request for Quote platform. This electronic price discovery service allows
banks and brokers to contact market makers selectively with requests for
quotes in order to find a trading counterparty.

This is one further step in delivering fully automated and efficient
solutions for market participants. Eurex addresses the market’s needs by applying its
core competences around transparency and process efficiencies to the Over
the Counter market. In this context, the exchange also supports the
futurization of products, such as the Total Return Future (TRF) that was introduced in
December 2016.

In August, Eurex’ latest trading statistics again showed strong demand for
its  products. The traded volume in TRFs was 216,000 contracts since
launch, and it marked a record month in August with nearly 48,000
contracts.

Overall, trading volumes at Eurex were at 110.7 million contracts and
therewith 18 percent higher than in August 2016 (93.5 million). The development in
the fixed income segment was particularly strong (+30 percent compared to
August 2016), followed by the equity index segment (+21 percent), while the equity
segment was weak (- 12 percent).