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Eurex Reverses Singapore Expansion

Written by Shanny Basar | Jan 26, 2018 11:11:37 AM

Over the last two years, the regulatory framework and market structure changed significantly. Eurex, one of the leading derivatives marketplaces, adapts its global structure to the new reality. To best serve its clients, reduce complexity and improve agility, the exchange will change its set-up in Switzerland and strengthen its offering in Asia.

Eurex has decided against filing for a separate authorisation as Multilateral Trading Facility under the new Swiss Financial Market Infrastructure Act (FMIA). In agreement with the supervisory authority FINMA, Eurex Zürich AG will discontinue its operational trading activities by 31 March 2018. With the subsequent lapse of their admission to Eurex Zürich AG trading members will be relieved from their respective statutory duties under FMIA, and fees due for the transaction reporting related to Eurex Zürich AG will no longer apply.

Going forward, Eurex will serve all its European and global clients through its existing German exchange and rulebook in Frankfurt, operated according to the MiFID II regulation. This allows to reduce legal and operational complexity as well as costs as participants no longer need memberships at two exchanges. At the same time, Eurex maintains its highest regulatory standards.

https://twitter.com/EurexGroup/status/956850211434975232

In parallel, the exchange strengthens its global services. To further support the market, Eurex plans to extend its trading hours to include the Asian time zone. The planned extension meets the needs of clients worldwide and provides the market with additional hedging opportunities for selected benchmark products.

In line with the planned extension, Eurex has decided to not further pursue the establishment of separate regulated entities in Singapore in order to reduce complexity and effort for its members, while at the same time strengthening its business and presence in Singapore, the operational hub for Deutsche Börse Group in Asia.

“Our focus in a fast changing environment is to maximise agility and efficiency“, says Thomas Book, CEO of Eurex. “We are very pleased to implement changes that will reduce regulatory complexity and cost for our clients. In addition expanding our distribution creates new and exciting trading opportunities.“

Source: Eurex