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By liquidity news Financial Market April 23, 2025

Eurex to Launch Euro-EU Bond Futures in September 2025

An announcement came from Eurex to launch futures contracts based on bonds issued by the European Union. It supports the EU’s goal to deepen its capital markets and enhance financial integration across member states.

Euro-EU Bond Futures Launch Details  

Trading for the new Euro-EU Bond Futures (FBEU) will begin on 10 September 2025. The issuer is Eurex. They expand Eurex’s European fixed income product portfolio.

The new futures are based exclusively on bonds issued by the European Union. Each contract will feature a 6% coupon to match existing Eurex futures like the 10-year Bund, OAT, BTP, and Bono. Deliverable bonds must have maturities between 8 and 12 years.

Risk and Margin Efficiency  

The FBEU will belong to the same portfolio margining group as other Eurex interest rate derivatives. This integration offers capital and margin efficiencies across futures, options, and swaps. It also improves risk management by consolidating related products within a unified framework.

Benefits for Traders

This update will offer these benefits:

New Trading Opportunities  

Now, traders can access a futures product tied to EU-issued bonds. This adds variety to existing instruments like Bunds and OATs. Helpful in diversifying strategies. 

More Precise Exposure  

The Euro-EU Bond Futures let investors target specifically the European Union. It is useful for someone wanting exposure to supranational risk rather than individual countries.

Improved Margin Efficiency  

Traders can benefit from portfolio margining since FBEU contracts fall under the same margining group as other Eurex rate products. It may reduce capital requirements when holding multiple positions across similar products.

Better Risk Management  

The standardized 6% coupon and 8 to 12-year maturity range offer predictable characteristics. Investors can more easily hedge interest rate risk tied to medium-term EU debt.

About Eurex

Eurex is a derivatives exchange based in Germany. It offers trading in varied European-based derivatives. The merger of Deutsche Terminbörse (DTB) and the Swiss Options and Financial Futures Exchange (SOFFEX) established it in 1998. Deutsche Börse AG acquired full ownership of Eurex in 2012. Eurex introduced a new liquidity framework for its EURO STOXX 50 Index Options in March.  

Summing Up

This launch provides new tools to manage exposure to EU-issued debt. Market participants have a clear timeline to prepare for this addition.

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