Partnership Program continues to facilitate growth in OTC Clearing / Traded ESG derivatives contracts up by over 80% in 2020
Eurex’s Partnership Program continued its success story in 2020. In the OTC Clearing segment, notional outstanding volumes grew by 29%, up from 12.9 trillion EUR in 2019 to 16.6 trillion and average daily cleared volumes grew by 16% overall – up from 103 billion EUR in 2019 to 122 billion EUR in 2020. Longer dated Interest Rate Swaps grew even more strongly with a 33% rise. These volumes were driven to a substantial degree by the Partnership Program which offers participants the chance to share in the economics of OTC IRD clearing and have a say in the governance of Eurex Clearing. Portfolio switch activity also increased significantly throughout the year, while Eurex contracts continue to show a similar spread with no material basis compared to LCH.
In the financial derivatives segment, a very strong Q1 was followed by more moderate trading activity across the rest of the year. Overall, 2020 saw a small reduction of 4% in the number of traded contracts compared to 2019. Eurex’s largest segment, European equity index derivatives, was the best performing with the number of traded contracts growing 10% from 953.0 million in 2019 to 1,050.7 million in 2020. EURO STOXX was the most active sector with 153.6 million traded contracts, up 8.4% from 141.7 million in 2019. And some of the strongest rises were seen in the number of traded ESG derivatives contracts – up 83% to 1.3 million traded contracts – and Equity Total Return Futures, with over 116,000 contracts changing hands in their first full year of trading.
Eurex Repo, a leading marketplace for secured funding and financing, saw overall term-adjusted volumes grow by 10% in 2020. Activity in GC Pooling increased significantly at the onset of the Covid-19 related market turbulence, demonstrating the importance of these markets for banks’ liquidity management in times of market stress. 2020 also saw the launch of the first Green Bond GC Basket – an initiative welcomed by both market participants and industry bodies, and a clear signal regarding the ongoing development of the ESG sector.
Business overview – full year 2020
| 2020 | 2019 | Change | |
| Financial derivatives: Traded contracts Eurex Exchange | |||
| European equity index derivatives (million) | 1,050.7 | 953.0 | +10% |
| European interest rate derivatives (million) | 528.5 | 560.8 | -6% |
| European equity derivatives (million) | 273.8 | 425.2 | -36% |
| Total (million) | 1,861.4 | 1,947.1 | -4% |
| OTC Clearing | |||
| Notional outstanding volumes (billion EUR) | 16,580 | 12,886 | +29% |
| Average daily cleared volumes (billion EUR) | 122 | 103 | +18% |
| – Of which Interest Rate Swaps (billion EUR) | 19 | 14 | +33% |
| Compression volumes | 10 | 7 | +42% |
| Repo: Average term-adjusted volume on Eurex Repo | |||
| GC Pooling (billion EUR) | 71.0 | 67.6 | +5% |
| Repo Market (billion EUR) | 88.4 | 77.4 | +14% |