Eurex is preparing to Bitcoin derivatives
Today, there is significant investor demand for access to bitcoin in a secure and regulated system. To eliminate the dependence on turning to unlicensed crypto platforms or building infrastructure, the derivatives exchange Eurex, managed by Germany’s largest stock exchange (Deutsche Börse AG), plans to launch bitcoin futures contracts.
Deutsche Börse AG (German Stock Exchange) is one of the international stock exchanges on the world stock market. The company started in 1992. It functions as a joint-stock company and owns several subsidiaries, acting as an organizer of transactions there. The group’s head office is located in Frankfurt am Main. It has branches in Luxembourg, London, New York, Chicago, Hong Kong, Singapore, Tokyo, Beijing, Prague, Zurich, and Moscow. All transactions are mostly in euros. It is a well-known fact that the German exchange Deutsche Börse AG, along with the Swiss exchange, controls the Eurex exchange, one of the world’s leading derivatives trading platforms. Let’s talk more about that.
Eurex, or the European Exchange, is currently one of the world’s largest exchanges dealing in derivative instruments (futures and options). Eurex appeared in 1998 due to integration between the German exchange of derivatives Deutsche Terminbörse (DTB) and the Swiss options and financial futures exchange (SOFFEX). Exchange transactions take place using electronic technical trading. It is accessible from various locations around the world. In 1999 Eurex registered a great increase in the number of exchange members (over 400) and trading capacity (about 380 million concluded contracts). In 2001, thanks to the introduction of additional financial products and improved technical aspects of transactions and settlements, the number of transactions more than doubled, reaching over 674 million contracts. Over the years, Eurex continued to increase the number of traded contracts in multiple sectors of the derivatives market and increased the geographical scope of trading. In 2006, more than 1.5 billion contracts went through Eurex annually, making it the world’s largest international market operator for equity and index futures and options, as well as interest rate derivatives.
According to an official statement from Eurex, a new financial product is slated to launch this year on September 13. As we know, ETC Group, a London-based issuer of cryptocurrency derivatives, developed it. The approximate price of one exchange-traded note (ETN) is 1/1000 BTC. In addition, the futures contract will be denominated in euros and is redeemable at the bitcoin price on maturity. Furthermore, Eurex announced that this will allow investors to take advantage of the rising BTC value, sidestep cryptocurrency storage issues, and trade on a regulated exchange.
Also worth mentioning is the opinion of Bradley Duke, CEO of ETC Group. He noted that the latest listing procedure represents the next critical step in providing organizations with financial resources. They admit to the use of cryptocurrency on regulated exchanges. He said that the selection of Eurex as a BTCE provider further reinforced ETC Group’s leading position in cryptocurrency ETPs and was an indication of the quality and unique liquidity of these products.
In conclusion, we can say that the growing popularity of futures, according to Eurex employees, is associated with the desire of crypto users by switching to work with new, more modern investment tools. Moreover, exchange experts believe that in the future the market will move in the direction of forming secure ways to interact with the market. So stay tuned for the latest news and don’t miss anything.
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