Agricultural Derivatives Also Available in the USA

Eurex’s new product segment with a successful first trading month

Eurex, the international derivatives exchange, today announced that its four agricultural derivatives can also be traded in the U.S. with immediate effect under the current Eurex no-action letter from the U.S. regulatory authority Commodity Futures Trading Commission (CFTC). This gives U.S. based customers also the opportunity to trade the four agricultural contracts listed on Eurex: futures on European processing potatoes and potatoes for the British market (London Potatoes), as well as piglet and hog futures 1).

Open interest has grown steadily since the launch on 20 July; currently it is above 4,000 contracts. Participants are able to trade the agricultural contracts from August to October 2009 for only 50 percent of the transaction fee.

Peter Reitz, member of the Eurex Executive Board, on the success of the first month: “Since 20 July, we have seen constant activity; average daily trading volume in the order book grew by 30 percent. I am also pleased that the number of members who use our agricultural products has increased over the last weeks.”

Further, he pointed out that there is a growing interest from financial participants and industry players from the underlying markets in Europe and beyond to further develop the segment in terms of product and regional coverage. Thus, the product range is set for expansion next year in consultation with market participants.

1) The piglet and hog futures are based on European underlyings.