Eurex Expands Global Credit Index Futures Offerings, Empowering Investors Worldwide

In a strategic move to bolster its position as a leading global derivatives exchange, Eurex has announced the launch of two new Credit Index Futures contracts – the Bloomberg US Corporate Index Futures and the Bloomberg US High Yield Very Liquid Index Futures. This expansion of Eurex's product suite solidifies its status as the first exchange to offer a comprehensive global portfolio of Credit Index Futures, catering to the evolving needs of market participants worldwide.

Unlocking Unparalleled Opportunities in the Credit Markets

Pioneering the Futurization of OTC Credit Products

Eurex has long been recognized as a trailblazer in the futurization of traditional over-the-counter (OTC) traded financial products. With the introduction of these new Credit Index Futures contracts, the exchange is once again at the forefront of innovation, providing market participants with a seamless and efficient way to access and manage their exposure to global credit markets. By leveraging an established derivatives structure, similar to the widely adopted equity index futures market, Eurex is empowering investors to hedge or take synthetic long positions in a diverse range of credit benchmarks.

Expanding the Global Credit Index Futures Ecosystem

Eurex's Credit Index Futures product suite has been steadily growing since 2021, catering to the evolving needs of market participants. The current lineup includes futures contracts based on the EURO Investment Grade, EURO High Yield, USD Emerging Markets, and GBP Investment Grade indices from Bloomberg's renowned fixed income index family. With the addition of the US Investment Grade and US High Yield corporate bond markets, Eurex now offers a truly comprehensive global product suite, enabling investors to manage their exposure to a diverse range of benchmark investment strategies across geographies and currencies.

Unlocking Risk Management Efficiencies

The introduction of the Bloomberg US Corporate Index Futures and Bloomberg US High Yield Very Liquid Index Futures at Eurex promises to deliver significant benefits for investors. By leveraging the exchange's Clearing Prisma risk management system, market participants can now enjoy substantial margin savings when trading these global benchmark index futures. Furthermore, Eurex plans to enhance its margin optimization processes by allowing for margin offsets between Fixed Income Futures and Credit Index Futures, further streamlining the risk management process for market participants.

Addressing the Growing Demand from Asset Managers

The demand for Credit Index Futures has been steadily increasing, particularly in Europe, driven by end-clients seeking versatile investment vehicles that are liquid, transparent, and cost-efficient. Eurex's Credit Index Futures product suite has seen impressive growth, with the monthly traded notional across all contracts reaching over EUR 26.7 billion in August 2024 and a total outstanding Notional of EUR 1.8 billion.This surge in demand has been fueled by the needs of real money, multi-strategy asset managers and pension funds, who are increasingly looking to allocate additional beta or hedge risks on a tactical basis. Eurex's decision to expand its global portfolio of credit futures, in partnership with Bloomberg Index Services Limited, directly addresses these investor requirements, providing a one-stop-shop for accessing and managing exposure to a diverse range of credit benchmarks.

Unlocking Global Accessibility for US-based Investors

Eurex's commitment to providing a truly global offering extends to the accessibility of its US dollar-denominated Credit Index Futures contracts. These products have been approved by the U.S. Commodity Futures Trading Commission (CFTC), enabling U.S.-based investors to participate in the trading and clearing of these innovative financial instruments.