By making available an integrated bond trading platform, Eurex will be meeting the requirements of modern bond trading, whose market participants prefer computerized trading to transactions over the phone. The exchange is thus meeting the market's express desire for secure, simple and cost-effective trading for cash and derivatives transactions via a single terminal.
The cooperation between Eurex and the market participants will take the form of a joint venture that will operate and organize the new market segment. Eurex founded this joint venture together with leading international market participants in bond trading. All of the parties to the agreement emphasized that the new company would be open for further internationally active investment banks and brokers to join. Also the Germanys Bundesbank has committed to trade on Eurex Bonds. The direct integration of the market participants makes this the first ECN in Europe to be formed with the participation of an exchange that meets the desire of major market participants for direct participation in the market organization. Bond trading will be realized via a new front end using existing infrastructure.
As Eurex CEO Dr. Jörg Franke pointed out, "we will be making the integrated basis trade facility available to the market for the launch of Eurex bond trading, a facility that it has wanted to have for a long time, thus enabling the simultaneous conclusion of cash and derivatives transactions. The joint venture with internationally leading bond-trading participants is intended to secure and expand the Bund future's benchmark status in Europe."
