Global Credit Index Futures
Credit Index Futures

Innovators in listed Credit Markets

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.

The Rise of Credit Index Futures

Our whitepaper explores the development of credit index futures, their comparison to other credit market instruments, and their potential to enhance how investors approach trading in the credit markets.

Key benefits

  • Liquidity and cash management
    When large fund inflows occur, it can be most efficient to take exposure to the benchmark index returns utilizing the available cash via futures. Get unfunded exposure to market returns while you search for the right bonds to buy.
  • Hedging purposes
    For a fund pursuing an active selection of bonds aimed to outperform the market, futures can be used to temporarily reduce portfolio market exposure.
  • Portfolio overlay
    Futures can be used to increase or reduce market exposure in a portfolio relative to its actual funded amount.
  • Clearing
    Credit Index Futures offer the market a standardized, cost-effective and centrally cleared solution.
     

Prices/Quotes

Product Diff. to prev. day last Last price Contracts Time
FECX -0.14% 166.21 812 18:33:46
FEHY -0.01% 295.16 813 18:33:46
FGBC -0.22% 141.65 587 18:33:48
FGGI +0.06% 125.41 0 18:33:48
FUEM -0.30% 114.70 897 18:34:09
FUHY -0.12% 685.53 654 18:44:36
FUIG -0.35% 3,318.40 560 18:34:10

Liquidity providers

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

Banco Santander

BSAMD

Juan Manuel Lorencio Gomez 


juanma.lorencio@gruposantander.com

Flow Traders

NEDAM

Jasper Jansen
Timothy Toh


nlbon@nl.flowtraders.com

Jane Street

JSNAM

Europe Institutional Sales team


Europesales@janestreet.com

Société Générale

SOGFR

Aziz Tikouirt
Arnaud Muller


list.par-mark-fic-trd-rat-etf@socgen.com

Susquehanna

SISDB

Ronan Henderson
Bruce Gunn


SIS-Sales-ETF@sig.com

+7 additional undisclosed liquidity providers in the order book

Liquidity providers Off-book

Company

Member ID

Contact

Banco Santander

BSAMD

Juan Manuel Lorencio Gomez 


juanma.lorencio@gruposantander.com

Bank of America

MLEPA

Joel Stainton


Joel.Stainton@bofa.com

BofA_Futures_EMEA@bofa.com

DRW

DRWZI

Tom Pughe
tpughe@drwuk.com


William Van Duzer  
wvanduzer@drwuk.com


Bernardus Roelofs
broelofs@drw.com

Flow Traders

NEDAM

Jasper Jansen
Timothy Toh


nlbon@nl.flowtraders.com

Goldman Sachs

GSIEB

Antony Harden


Futures-Voice-EQ-EMEA@gs.com

Jane Street

JSELO

Europe Institutional Sales team


Europesales@janestreet.com

JP Morgan

JPDFR

EMEA Futures & Options Sales Execution


FO_EMEA_Conti_Desk@jpmorgan.com

Société Générale

SOGFR

Aziz Tikouirt
Arnaud Muller


list.par-mark-fic-trd-rat-etf@socgen.com

Susquehanna

SISDB

Ronan Henderson
Bruce Gunn

SIS-Sales-ETF@sig.com


Bloomberg index composition

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

  • Eurex: FECX – Bloomberg Index: Bloomberg MSCI Euro Corporate SRI Index – Bloomberg ticker: RECMTREU Index
    Factsheet
  • Eurex: FEHY – Bloomberg Index: Bloomberg Liquidity Screened Euro HY Index – Bloomberg ticker: BEHLTREU Index
    Factsheet
  • Eurex: FUIG – Bloomberg Index: Bloomberg US Corporate Index – Bloomberg ticker: LUACTRUU Index
    Factsheet
  • Eurex: FUHY – Bloomberg Index: Bloomberg US High Yield Very Liquid Index – Bloomberg ticker: LHVLTRUU Index
    Factsheet
  • Eurex: FUEM – Bloomberg Index: Bloomberg Emerging Market USD Sovereign & Sovereign Owned Index – Bloomberg ticker: I38156US Index
    Factsheet
  • Eurex: FGBC – Bloomberg Index: Bloomberg Sterling Liquid Corporate Index – Bloomberg ticker: I35357GB Index
    Factsheet
  • Eurex: FGGI – Bloomberg Index: Bloomberg MSCI Global Green Bond Index – Bloomberg ticker: GBGLTREU Index
    Factsheet

Contacts

Chris Dopp
Fixed Income Sales America

T +1-312-544-10 11

chris.dopp@eurex.com

Vassily Pascalis
Fixed Income Sales Europe

T +44-20-78 62-72 11

vassily.pascalis@eurex.com

Davide Masi
FIC ETD Product Design

T +44-20-78 62-76 67

davide.masi@eurex.com

Leon von Essen
FIC ETD Product Design

T +49-69-211-1 49 64

leon.von.essen@eurex.com