Mini-DAX. Maximum Opportunity.

Transcription

1 Mini-DAX. Maximum Opportunity. Webinar - Interactive Brokers Thursday, 3 December 2015, 12:00 EST

2 Agenda Summary Market analysis of the DAX Futures Contract details DAX highlights About Eurex Exchange Q&A 2

3 Summary Eurex Exchange launched Mini-DAX Futures (FDXM) on 28 October 2015 With the positive stock performance in the last few years and DAX being at levels of up to 12,000 points, the contract size of the DAX Futures has peaked at 300,000 EUR at the beginning of this year. At this level, the arguments in favor of a smaller contract become even more pronounced: for retailers and smaller institutional firms the contract is simply too heavy, and for bigger institutions it is difficult to hedge accurately. A wide market consultation held in Q1 & Q showed a strong support of the idea of a smaller contract, with a preference for the parallel Mini-DAX Futures. Successful launch of a parallel Mini-DAX Futures on 28 October

5 Market analysis of DAX Futures (FDAX) Notional value in EUR of DAX, EURO STOXX 50 Index and SMI Futures Notional value of DAX Futures has outpaced other benchmark index futures at Eurex Exchange over the past years. As DAX is a performance index, it is likely that its notional value will grow further over time. 5

6 Market analysis of DAX Futures (FDAX) Notional value in EUR of leading worldwide equity index futures DAX Futures have two times the size of all other international index futures (apart from S&P500, which already switched 99% of the volume to the Mini). In terms of notional being traded, DAX Futures still ranks #4 worldwide only behind S&P500, EURO STOXX 50 and CSI300 Futures. 6

8 Contract specifications FDXM versus FDAX Lower contract value increased minimum price change Mini-DAX Futures (FDXM) DAX Futures (FDAX) Contract value 5 EUR per index point 25 EUR per index point Contract terms Up to 9 months Up to 9 months Minimum price change 1 index point 0.5 index point Tick value 5 EUR 12.5 EUR Settlement Final settlement price Final settlement day Last trading day Continuous trading Trade Entry Services (TES) TES Flexible Contracts Cash settlement Index calculated based on intraday auction prices (13:00 CET) Third Friday of the maturity month Third Friday of the maturity month 08:00 22:00 CET 08:00 22:00 CET Available Trading fee (order book) 0.25 EUR (A-acc.) / 0.20 EUR (M-& P-acc.) 0.50 EUR TES Minimum block trade size 500 (same as ODAX) 250 Vendor codes Trading calendar Bloomberg: DFWA Index<GO> Reuters: 0#FDXM: Each Eurex exchange day Bloomberg: GXA Index<GO> Reuters: FDX 8

9 Fees and margins at Interactive Brokers Competitive fee and margins Mini-DAX Futures (FDXM) DAX Futures (FDAX) Contract fees (fixed) 0.80 EUR 2.00 EUR Contract fees (tiered) Notional value of the contract in EUR (index level ) 0.50 EUR* + regulatory fee 0.01 EUR + exchange fee 0.25 EUR = Total 0.75 EUR 0.90 EUR* + regulatory fee 0.01 EUR + exchange fee 0.50 EUR = Total 1.41 EUR 54,750 EUR 273,750 EUR Initial Margin (IB) (as of 5 Nov 15) 2, EUR 12, EUR Intraday maintenance (IB) 2, EUR 10, EUR Total Margin 4, EUR 22, EUR *The commission is dependent on number of traded contracts per month: For FDAX: up to contracts 0.90 EUR, to contracts 0.60 EUR, contracts 0.40 EUR, more than contracts 0.25 EUR For FDXM: up to contracts 0.50 EUR, to contracts 0.30 EUR, more than contracts 0.10 EUR 9

10 Comparison Futures versus CFD s Main differences Mini-DAX Futures (FDXM) CFD s* DAX Futures (FDAX) Minimal Multiplier (Notional) 5x (54,750 EUR) 1x (10,950 EUR) 25x (273,750 EUR) Counterparty Eurex Clearing (CCP) Interactive Brokers Eurex Clearing (CCP) Minimum price change 1 Index point 0.01 Index points 0.50 Index points Open order book Yes No Yes Official Market Makers Yes (12) Interactive Brokers No order book Settlement Cash Cash Cash Trading hours 08:00 22:00 CET 08:00 21:00 CET 08:00 22:00 CET Commission (fixed) 0.80 EUR 0.005% - Minimum 1.00 EUR 2.00 EUR Initial Margin (IB) (as of 5 Nov 15) 2, EUR EUR 12, EUR Intraday maintenance (IB) 2, EUR EUR 10, EUR Total Margin 4, EUR EUR 22, EUR *All Interactive Brokers clients can trade CFDs, except residents of the USA, Canada, Hong Kong and Australia. 10

11 Order book and Market Makers Initially 12 Market Makers Barak Capital BNP Paribas Geneva Ireland Financial Trading Jump Trading DRW Investments (UK) Ltd. Maven Derivatives Flow Traders Optiver Positive Equity Ltd. Societe Generale Spire Europe Ltd. XR Trading Europe LLP help to create a liquid order book. 11

12 Statistics Mini-DAX Futures On 10 November the Mini-DAX Futures reached over 13,000 contracts 120, ,000 80,000 60,000 40,000 20, % 14% 12% 10% 8% 6% 4% 2% 0% >100 active members Spread tightened to 1-2 ticks Open interest increased to 3,390* contracts ADV 7,500* Market share of Mini- DAX Futures vs. DAX Futures has reached ~ 3 % FDAX Traded Contracts FDXM Traded Contracts FDXM Share (tc FDAX) FDXM Share (Notional) * Data as of 10. November

14 DAX highlights One of the leading global equity indexes DAX measures the development of the 30 largest companies of the German equities market and represents around 80% of the market capital authorized in Germany. DAX is a performance index, meaning dividends are reinvested and reflected in the performance of the index. As one of the most important equity indexes in the world, it serves as an underlying for more than 40,000 financial products and is the third largest underlying for derivatives*. EURO STOXX 50 Index Futures are still behind the pre-crisis levels and SMI Futures are just a third of DAX Futures notional. *source: source: as of

16 About Eurex Exchange Eurex Exchange is one of the leading listed derivatives market place worldwide Eurex Exchange is one of the top 3 derivatives markets worldwide. Diversified product portfolio with leading futures and options in equity, equity index, fixed income, dividend, volatility, FX and commodity derivatives. Broadest offering globally in equity index derivatives - stable liquidity pools in EURO STOXX 50 Index, DAX and SMI, European single equities and home of the euro yield curve. Strong growth rates in MSCI Futures and Options and VSTOXX derivatives. Eurex Clearing as CCP provides a stable counterparty for all trades executed at Eurex Exchange. Portfolio risk margining allows margin benefits and cross margining of balanced overall portfolios. State-of-the-art technology (T7 trading platform) delivers low latency and safe handling of high throughput. 16

17 392 Trading Participants from 35 countries registered traders Host system Access point (number of connected members in brackets) Additional member sites Direct exchange connection Sweden (2) Finland (4) Canada (1) USA (65) Bermuda (0) Virgin Islands (2) Cayman Islands (4) Portugal (1) Ireland (5) Jersey (1) Spain (14) UK (97) Denmark (2) Netherlands (26) Poland (1) Belgium (3) Luxembourg (3) Germany (61) Czech Republic (1) France (23) Liechtenstein (1) Austria (5) Switzerland (28) Italy (12) Croatia (1) Korea (Rep.) (2) China (HK) (3) Japan (1) Taiwan (6) Gibraltar (1) Greece (4) Cyprus (3) Singapore (4) Israel (1) UAE (2) Australia (2) 17

18 Q&A Thank you for your attention! We are happy to answer your questions. 18

19 Further information Contact us or visit us at /Mini-DAX Global Product R&D Sales Continental Europe Sales Switzerland & Italy Ralf Huesmann T: +49 (0) ralf.huesmann@eurexchange.com Christian Dimanski T: +49 (0) christian.dimanski@eurexchange.com Philipp Schultze T: +41 (0) philipp.schultze@eurexchange.com Sales UK Sales Americas Sales France Murat Baygeldi T: +44 (0) murat.baygeldi@eurexchange.com Tim Levandoski T: timothy.levandoski@eurexchange.com Thomas Belkin (Buy Side) T: thomas.belkin@eurexchange.com Nicolas Kageneck T: +33 (0) nicolas.kageneck@eurexchange.com Sales Asia & Middle East Cina Lee T: cina.lee@eurexchange.com 19

20 Eurex 2015 Deutsche Börse AG (DBAG), Clearstream Banking AG (Clearstream), Eurex Frankfurt AG, Eurex Clearing AG (Eurex Clearing) as well as Eurex Bonds GmbH (Eurex Bonds) and Eurex Repo GmbH (Eurex Repo) are corporate entities and are registered under German law. Eurex Zürich AG is a corporate entity and is registered under Swiss law. Clearstream Banking S.A. is a corporate entity and is registered under Luxembourg law. U.S. Exchange Holdings, Inc. and International Securities Exchange Holdings, Inc. (ISE) are corporate entities and are registered under U.S. American law. Eurex Frankfurt AG (Eurex) is the administrating and operating institution of Eurex Deutschland. Eurex Deutschland and Eurex Zürich AG are in the following referred to as the Eurex Exchanges. All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof (other than certain trademarks and service marks listed below) are owned by DBAG and its affiliates and subsidiaries including, without limitation, all patent, registered design, copyright, trademark and service mark rights. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication DBAG, Clearstream, Eurex, Eurex Clearing, Eurex Bonds, Eurex Repo as well as the Eurex Exchanges and their respective servants and agents (a) do not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication. This publication is published for information purposes only and shall not constitute investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. Eurex and Eurex Clearing offer services directly to members of the Eurex exchanges respectively to clearing members of Eurex Clearing. Those who desire to trade any products available on the Eurex market or who desire to offer and sell any such products to others or who desire to possess a clearing license of Eurex Clearing in order to participate in the clearing process provided by Eurex Clearing, should consider legal and regulatory requirements of those jurisdictions relevant to them, as well as the risks associated with such products, before doing so. Eurex derivatives are currently not available for offer, sale or trading in the United States or by United States persons (other than EURO STOXX 50 Index Futures, EURO STOXX 50 ex Financials Index Futures, EURO STOXX Select Dividend 30 Index Futures, EURO STOXX Index Futures, EURO STOXX Large/Mid/Small Index Futures, STOXX Europe 50 Index Futures, STOXX Europe 600 Index Futures, STOXX Europe 600 Banks/Industrial Goods & Services/Insurance/Media/Travel & Leisure/Utilities Futures, STOXX Europe Large/Mid/Small 200 Index Futures, Dow Jones Global Titans 50 Index SM Futures (EUR & USD), DAX /MDAX /TecDAX Futures, SMIM Futures, SLI Swiss Leader Index Futures, MSCI World/Europe/ Europe Value/Europe Growth/Emerging Markets/Emerging Markets Latin America/Emerging Markets EMEA/Emerging Markets Asia/China Free/India/Japan/Malaysia/South Africa/Thailand/AC Asia Pacific ex Japan Index Futures, TA-25 Index Futures, Daily Futures on TAIEX VFutures, VSTOXX Futures, Gold and Silver Futures as well as Eurex agriculture, property and interest rate derivatives). 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