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
|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%|
|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%|
|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%|