The international derivatives exchange Eurex is to extend the fee waiver period on transactions in the Dow Jones Euro STOXX 50® Index Dividend Future until the end of 2008. The move comes in response to member requests to facilitate the migration of over-the-counter dividend swap trades into futures positions via the use of the Eurex OTC Block Trade Facility. The Eurex OTC Block Trade Facility is one of the set of Wholesale Functionalities provided for posting trades to Eurex Clearing, which then acts as central counterparty (CCP) to these trades.
Michael Peters, member of the Eurex Executive Board said, “Enabling an efficient transfer of positions into the clearing house helps members eliminate counterparty and credit concerns and allows an optimized operational efficiency with Eurex Clearing’s seamless post trade management. Eurex Clearing, with its OTC Wholesale Functionality, is committed to aiding members with their risk management operations.”
The Dow Jones Euro STOXX 50® Index Dividend Future (FEXD) was introduced on 30 June 2008. The extension of the waiver means that no fees will be levied by Eurex for any trades undertaken in 2008. The future settles to the Dow Jones Euro STOXX 50® DVP (Dividend Points) value which is calculated and published by STOXX Ltd. and which mirrors the underlying values on over-the-counter dividend swaps on the Dow Jones Euro STOXX 50® Index.
On 17 September, a record 3,049 contracts were traded; open interest stood at 16,769 contracts at 22 September close.
