Eurex has expanded its Partnership Program to Credit Index Derivatives, with eight leading financial institutions joining at launch to strengthen liquidity in the growing market.
Eurex launches Credit Index Derivatives Partnership with Major Banks
Banco Santander, BNP Paribas, Flow Traders, Goldman Sachs, Jane Street, J.P. Morgan, Morgan Stanley and Susquehanna International Group signed up on 1 August, backing Eurex’s push to expand electronification and standardisation in credit markets.
Eurex, part of Deutsche Börse Group, said the initiative builds on its existing Partnership Program in short-term interest rates and swaps.
The model is said to be performance-based and aligns incentives across liquidity providers and end-users to stimulate growth.
Credit Index Futures, launched at Eurex in October 2021, provide a centrally cleared alternative to over-the-counter instruments such as credit default swaps and total return swaps.
Eurex said the products offer margin efficiencies across its multi-asset suite and broaden access to smaller institutions and proprietary trading firms.
Matthias Graulich, Member of the Executive Board of Eurex, said: “We are thrilled to launch this program with eight leading partners, sharing a common vision to transform credit markets. By fostering liquidity in Eurex’s Credit Index Derivatives, we’re accelerating electronification and standardisation for a more efficient and accessible market.”
Goldman Sachs, J.P. Morgan and Susquehanna all welcomed the move, citing strong client demand for listed credit products.
Trading activity in Credit Index Futures has accelerated, with Eurex reporting traded notional of more than €75 billion so far this year and outstanding notional of €2.8 billion at the end of August, more than double year-earlier levels.
