Eurex Bonds Expands Product Portfolio - Big Demand From Market Participants For Trading Solution Without Execution Risk

On Monday, Eurex Bonds, the electronic trading platform operated jointly by the international derivatives exchange Eurex and major bond-trading houses, expanded its product portfolio with the introduction of its pre-arranged trade facility. With the new functionality, trading participants at Eurex Bonds can now enter trades that have been pre-arranged in the OTC market outside of the existing quote book as well. This facility is available for all bonds tradable on Eurex Bonds and for all basis instruments on German government bonds with a remaining term to maturity of more than one year. This new pre-arranged trade facility is available to all trading participants of Eurex Bonds as a matter of principle. On the first three trading days approximately 500 million euros (single counted) was traded on the new pre-arranged trade facility.

With the introduction of its pre-arranged trade facility, Eurex Bonds is meeting the big demand from the market for such a trading solution. In professional bond trading, larger volumes in bond or basis trading (block trades), arbitrage transactions in individual bonds (spread trades) and arbitrage transactions between bonds and futures (basis trades) are often arranged bilaterally by the trading participants prior to execution via the Eurex Bonds trading system. The new offer of a controlled, flexible and user-friendly input functionality via Eurex Bonds is appealing for market participants, especially in trading with high volumes, without the usual execution risk.

The electronic bond-trading platform Eurex Bonds offers trading and clearing of German government bonds as well as in issues of the KfW (Kreditanstalt für Wiederaufbau), the European Investment Bank, individual German states and Jumbo Pfandbrief issues. Moreover, with its basis-trading facility Eurex Bonds provides an attractive product combination of bonds and futures contracts traded at Eurex.