What Is the Eurex?

The Eurex or Eurex Exchange is the largest futures and options market in the world. It deals primarily with Europe-based derivatives but provides electronic access to traders connected from 700 locations around the world.

Eurex is part of the Eurex Group and is owned by Deutsche Börse AG, a transaction services provider that enables access to global capital markets to investors and financial institutions.

Understanding the Eurex

The products that trade on the Eurex range from German and Swiss debt instruments to European stocks and stock indexes.

Key Takeaways

  • The Eurex is the world's largest derivatives market.
  • Dealers trade on the Eurex from 700 locations globally.
  • Deutsche Börse AG owns the Eurex.

Along with facilitating trade, EUREX provides contract settlements. The exchange settles more than 1.6 million of these contracts annually. Its fully electronic network is considered one of the best and most innovative electronic markets in the world.

Contracts and transactions that are settled on the Eurex are cleared through Eurex Clearing, which serves roughly 200 members in 19 different countries.

A Brief History of the Eurex

The Eurex was founded in 1998 as a joint partnership between Deutsche Börse AG and SIX Swiss Exchange. It was a time when the traditional open outcry system was being taken over by the emerging electronic trading systems of the time. The Eurex was one of the first exchanges to offer fully electronic trading to users.

Deutsche Börse AG became the sole owner of the Eurex in 2012 when it purchased all of SIX's Eurex shares.

The exchange now offers a variety of products including interest rate derivatives, equity derivatives, dividend derivatives, foreign exchange derivatives, commodity derivatives, and property derivatives.

The Eurex Trading Technology

The Eurex uses a trading platform technology called T7, which was developed by Deutsche Börse Group. The same system is used by the European Energy Exchange (EEX) and Powernext for derivatives trading. Cash trading is done through the T7 system by the Frankfurt Stock Exchange, the Irish Stock Exchange (ISE), and the Vienna Stock Exchange (WBAG).

Eurex Management

As of 2019, key management personnel at Eurex included:

  • Thomas Book, CEO, Eurex Frankfurt AG, who was appointed to his position of chief executive officer of Eurex Frankfurt AG in 2016. Before this, Book was the CEO of Eurex Clearing AG between 2013 and 2016. He joined Deutsche Börse Group in 1995 and was part of the team that founded Eurex.
  • Erik Tim Müller, CEO, Eurex Clearing AG, who has been part of the Eurex Clearing executive team since 2013. Before being appointed to his position, he was a managing director with the Deutsche Börse Group, where he was responsible for corporate strategy and mergers and acquisitions.