The European Consolidation Board on Futures and the International Derivatives Exchange The European Consolidation Board for Foreign Industry: Financial.

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Presentation transcript:

The European Consolidation Board on Futures and the International Derivatives Exchange The European Consolidation Board for Foreign Industry: Financial Services

This presentation is for information purposes only and does not constitute investment advice nor an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This presentation 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. RISK STATEMENT 2 Eurex – The International Derivatives Exchange | Risk Statement

TRADABLE EUREX PRODUCTS FROM THE U.S. 3 Please find the current products available for trade in the U.S. and the current trading hours on our website: Trading > Products > Eurex Derivatives in the U.S. Trading > Trading Calendar > Trading Hours Fixed Income Derivatives Fixed Income Futures Euro-Schatz, Euro-Bobl, Euro-Bund and Euro-Buxl® Futures CONF Futures (CONF), Euro-BTP Futures Options on Fixed Income Futures Options on Euro-Schatz, Euro-Bobl and Euro-Bund Futures Commodity Derivatives CO2 Derivatives EUA Futures (F2PE), CER Futures (FCER), Options on EUA Futures (O2PE) Agriculture Derivatives European Processing Potato Futures (FEPP), London Potato Futures (FLPI), Piglet Futures (FPIG), Hog Futures (FHOG) Precious Metal Derivatives Gold Futures (FGFX), Gold Options (OGFX) Silver Futures (FSFX), Silver Options (OSFX) Inflation Derivatives Euro-Inflation Futures (HICP) Equity Index Derivatives Benchmark Equity Index Futures DAX® Index, MDAX® Index, TecDAX® Index, Dow Jones EURO STOXX 50® Index, Dow Jones STOXX 50® Index, SLI Swiss Leader Index® and RDxxt® USD - RDX Extended Index Futures Sector Index Futures Dow Jones STOXX® Large 200 Index, Dow Jones STOXX® Mid 200 Index, Dow Jones STOXX® Small 200 Index, Dow Jones EURO STOXX® Banks Index, Dow Jones STOXX® 600 Banks Index, Dow Jones STOXX® 600 Industrial Goods & Services Index, Dow Jones STOXX® 600 Insurance Index, Dow Jones STOXX® 600 Media Index, Dow Jones STOXX® 600 Personal & Household Goods Index, Dow Jones STOXX® 600 Travel & Leisure Index, Dow Jones STOXX® 600 Utilities Index, Dow Jones EURO STOXX® Select Dividend 30 Index, Dow Jones STOXX® 600 Index, Dow Jones Global Titans 50 SM Index, SMIM® Index Money Market Derivatives Money Market Futures One-Month EONIA Futures (FEO1) Three-Month EURIBOR Futures (FEU3) Options on Money Market Futures Options on Three-Month EURIBOR Futures (OEU3)

Trade during different time zones –Trading hours: 12:50 AM CST - 3:00 PM CST –Follow the sun…..Many moves that begin in Asia and Europe carry over Diversify –Exploit new opportunities and product offerings in foreign markets –Use index futures as an alternative to purchase a basket of stocks – and benefit from the leverage effect –Lower transaction costs in futures offer advantages versus other investment vehicles such as cash equities or ETFs –Efficient vehicle to protect index portfolios against market downturns –Euro-denominated contract –Liquid, volatile markets are well suited to intraday trading. Markets that provide similar profit risk/reward scenarios –Similar to the most popular products Features of Eurex Markets –Extremely liquid –Large open interest –Large depth of market –Good movement/volatility WHY TRADE ON EUREX? 4 Eurex – The International Derivatives Exchange | Eurex

5 Dow Jones EURO STOXX 50 ® Index Futures Average Daily Volume & Open Interest Eurex – The International Derivatives Exchange | Product Details The Average Daily Volume in September 2009 was over 1.5 million contracts, with an open interest of over 2.3 million contracts. The bid-offer spread is regularly 1 tick wide, and the depth of market regularly several thousand contracts, offering excellent liquidity. FESX Octobert Contract / Inside Market DJ Euro STOXX 50 Futures

6 Contract Specifications Eurex – The International Derivatives Exchange | Product Details Dow Jones EURO STOXX 50 ® Index A free float capitalization-weighted index of 50 blue-chips from the Euro zone countries DJ EURO STOXX 50® is a price return index Calculated by STOXX Ltd., created in 1998 Futures Cash Settlement Dow Jones EURO STOXX 50 ® Index Trading hours7:50AM – 10:00PM CET; 12:50AM – 3:00PM CST Minimum tick size1 index point = 10 / $14.59* Contract size27,500 / $40,122.50* at 2,750 index level Contract monthsThe 3 nearest quarterly months of Mar, Jun, Sep, Dec ExpirationThe 3 rd Friday of the maturity month at 12:00PM CET / 5:00AM CST Intraday daily settlement5:30PM CET / 10:30AM CST *EUR/USD = 1.46

7 DAX® Futures Average Daily Volume & Open Interest Eurex – The International Derivatives Exchange | Product Details The Average Daily Volume in September 2009 was over 170,000 contracts, with an open interest of over 170,000 contracts. The bid-offer spread is regularly 1 tick wide, and the depth of market regularly several thousand contracts, offering excellent liquidity. FDAX October 2009 Contract / Inside Market DAX Futures

8 Contract – The International Derivatives Exchange | Product Details DAX® Index A free float capitalization-weighted index comprising the 30 largest German companies listed at the Frankfurt Stock Exchange (FWB®) DAX® is a performance / total return index Calculated by Deutsche Börse AG and is based on prices generated in the electronic trading system XETRA Futures Cash Settlement DAX ® Futures (FDAX) Trading hours7:50AM – 10:00PM CET; 12:50AM – 3:00PM CST Minimum tick size0.5 index points = / $18.25* Contract size136,688 / $199,564* at 5, index level Contract monthsThe 3 nearest quarterly months of Mar, Jun, Sep, Dec ExpirationThe 3 rd Friday of the maturity month at 1:00PM CET / 6:00AM CST Intraday daily settlement5:30PM CET / 10:30AM CST

9 A Comparison of Historical Volatility Eurex – The International Derivatives Exchange | Product Details Source: Bloomberg Dow Jones EURO STOXX ® and DAX ® vs. US Equivalents

Eurex Products U.S. Index Futures S&P 500 E- Mini Future (ESA) S&P 500 Future (SPA) Nasdaq 100 E-mini Future (NQA) Nasdaq 100 Future (NDA) DJIA Mini (DMA) DJIA Index Future (DJA) 1 DAX ® Index Futures (GXA) DJ EURO STOXX 50 ® (VGA) Eurex Products in relation to U.S. Index Futures Eurex – The International Derivatives Exchange | Product Details

Free weekly e-newsletter Produced by CRB (Covers week ahead in European Markets Whats driving markets Economic calendar Step 1 – Go to the Education tab Step 2 – Click on Investor Newsletter on the left panel Step 3 – Enter your address and confirm If you sign up after Mondays e-newsletter is sent out, you will receive first newsletter NEXT week! The European Consolidation Board EUROPEAN MARKET OUTLOOK E- NEWSLETTER 11 The International Derivatives Exchange | EMO