Electronification and indexed trading through portfolio trades and exchange traded funds (ETFs) have improved price discovery and liquidity in the fragmented credit markets landscape.
The over-the-counter (OTC) credit derivatives markets, however, remain opaque, operationally challenging and not universally accessible. Eurex can provide value here, as demonstrated in the equity index and government bond markets. Our Credit Index Futures markets are transparent and benefit from a diverse set of liquidity providers, ensuring narrow on-screen prices and off-book trades.
Since 2021, Eurex has offered market participants a unique and valuable set of investment vehicles to hedge and take synthetic long exposure on global credit markets via a suite of listed Credit Index Futures. Market consultations highlighted the need for a diverse product portfolio to express credit views using ETF and index derivatives, Cash bonds (portfolio trades) and OTC.
These standardized, exchange-traded contracts utilize a simple derivative structure widely used in the equity index futures market.
The global product suite includes the EURO Investment Grade, EURO High Yield, USD Emerging Markets, GBP Investment Grade, USD Investment Grade and USD High Yield segment. Eurex utilizes the Bloomberg family of fixed income indexes to leverage established benchmarks with which Eurex customers are already familiar.
With the introduction of two new USD Credit Index Futures as of 23 September 2024, Eurex is the first exchange with a truly global offering of credit index futures, helping clients to capitalize on risk management efficiencies across products and lower capital costs.
Liquidity providers On-screen
The following list of on-screen Liquidity Providers is non-exhaustive, as some prefer to remain undisclosed while making markets in the order book. See details below.
Company | Member ID | Contact |
Flow Traders | NEDAM | Jasper Jansen |
Jane Street | JSNAM | Europe Institutional Sales team |
Société Générale | SOGFR | Aziz Tikouirt |
Susquehanna | SISDB | Ronan Henderson |
+7 additional undisclosed liquidity providers in the order book | ||
Liquidity providers Off-book
Company | Member ID | Contact |
Bank of America | Joel Stainton | |
Flow Traders | NEDAM | Jasper Jansen |
Goldman Sachs | GSIEB | Antony Harden |
Jane Street | JSELO | Europe Institutional Sales team |
JP Morgan | JPDFR | EMEA Futures & Options Sales Execution |
Société Générale | SOGFR | Aziz Tikouirt |
Susquehanna | SISDB | Ronan Henderson Bruce Gunn SIS-Sales-ETF@sig.com |
In accordance with UCITS requirements, Bloomberg Index Services Limited provides publicly on its website key information on its indices.
Fixed income Index methodology documentation, Index Factsheets as well as index compositions are all available publicly on the Bloomberg Indices website via the following links.
In particular, all Eurex Credit Index Futures underlying indices are available via the below links, and all key information to fulfill UCITS requirement can be accessed via the Bloomberg website.
More specifically, please find below the links to each documentation.
Bloomberg Fixed Income Index Methodology
Additionally, to Bloomberg Fixed Income Index Methodology, please follow the link below to access Bloomberg MSCI ESG Fixed Income Indices Methodology to know more about the considerations taken into account for the underlying indices of FECX and FGGI.
Bloomberg MSCI ESG Fixed Income Indices Methodology
Contacts
