Santander Asset Management has joined Eurex as it expands its FX futures business, and plans to establish an options business on the exchange.
The announcement is in line with an underlying trend towards FX business, Eurex said, with an increasing number of market participants using FX derivatives to hedge their portfolio performance. In light of the increased costs resulting from counterparty risk and related regulations, centrally cleared FX futures and options can help to mitigate counterparty credit risk, optimise capital costs and manage uncleared margin rules, Eurex stated.
Banco Santander is supporting the firm as a clearing member, while Deutsche Bank is serving as liquidity provider. The latter enabled the first FX options block trade at Eurex, the exchange noted.
Imanol Urquizu, head of derivatives at Santander Asset Management, said: “We look forward to working with Eurex to expand our listed FX business in Europe. In addition to our engagement in FX futures we actively collaborate with multiple FX dealers to explore the trading of FX options at Eurex. Integrating FX futures and FX options within the Eurex ecosystem unlocks operational efficiencies and enhances our risk netting capabilities.”
Mario Muth, global head of platform and listed derivatives sales and head of fixed income market structure at Deutsche Bank, added: “Trading FX on Eurex enables clients to benefit from the efficiencies of a listed derivatives market, and this is a prime example of how Deutsche Bank partners with clients and trading venues to provide liquidity and solutions in the evolving FX market.”
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