Euro Bund options with weekly expiration dates to launch in late April 2015
The international derivatives market Eurex Exchange, a subsidiary of Deutsche Börse Group, is launching new options contracts on the Euro Bund futures with weekly expiration dates (weekly options) on 20 April 2015. Contracts with expiration dates on the five following Fridays will be offered in addition to the existing options on the Euro Bund Futures. This expanded range of options further diversifies Eurex Exchange’s offering of euro-denominated interest rate derivatives.
Eurex Exchange has worked closely with market participants and market makers in developing these weekly Bund options in order to ensure liquid trading from day one. Interested participants will be able to test the new weekly Bund options in a simulation environment from 26 March.
“Weekly options will offer investors the possibility to react more precisely to market events,” said Eurex Executive Board member Mehtap Dinc. “Trading activity in options with short-expiration periods on the Euro STOXX 50 and DAX has shown that investors value these types of instruments.”
Eurex Exchange will offer a special market-making incentive program at the market launch. A large number of participants, particularly the institutions currently quoting Euro Bund options, have signaled great interest in market making.
The new options will have similar product specifications to the existing Bund options: the contracts will be physically settled and denominated in euros with a minimum price change of one tick (= 10 euros). Trading hours will be from 8 a.m. to 5.15 p.m. CET.
