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 current product suite includes the EURO Investment Grade, EURO High Yield, USD Emerging Markets and GBP Investment Grade segment. Eurex utilizes the Bloomberg family of fixed income indexes to leverage established benchmarks with which Eurex customers are already familiar.
As of 23 September 2024, Eurex will expand its existing offering of Credit Index Futures on the Euro and British pound markets with additional contracts on the U.S. dollar corporate bond market.
With the introduction of futures on the Bloomberg US Corporate Index and the Bloomberg US High Yield Very Liquid Index, Eurex will be the first exchange with a truly global offering of credit index futures.
Liquidity providers On-screen
Company | Member ID | Contact |
Flow Traders | NEDAM | Jasper Jansen |
Société Générale | SOGFR | Aziz Tikouirt |
Susquehanna | SISDB | Ronan Henderson |
Liquidity providers Off-book
Company | Member ID | Contact |
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
