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Santander Partners with Eurex to Overhaul Listed FX Business

Santander Partners with Eurex

Highlights

  • With the launch of its FX derivatives trading activity at Eurex, Santander Asset Management is highlighting the expanding trend of listed foreign currency (FX) products.
  • With this move, Eurex, Europe’s leading derivatives exchange, welcomes Santander as a further global player in its listed FX segment.
  • Deutsche Bank provides liquidity for Santander Asset Management’s FX futures business at Eurex, while Banco Santander serves as the clearing member.

There is increasing demand for Eurex’s listed foreign currency derivatives. The top derivatives market in Europe has welcomed another international investor to its listed foreign exchange market with Santander Asset Management. Under the backing of Deutsche Bank as a liquidity provider and Banco Santander as a clearing member, the Spanish asset manager has begun to grow their FX futures business to Eurex.

Santander Asset Management Expands into Eurex’s Growing Listed FX Market

The trend toward listed FX operations is highlighted by Santander Asset Management’s action. A growing number of market players are using listed FX futures as a hedge against the performance of their portfolios. Regulations relating to counterparty risk and growing costs are having an increasing effect on this. Market players can reduce counterparty credit risk, manage uncleared margin rules (UMR), and maximize capital expenses with the use of centrally cleared FX futures and options.

The global head of FIC derivatives and repo sales at Eurex, Jens Quiram, said, “We are proud to welcome Santander Asset Management. This is a great addition on our way to becoming the leading FX liquidity hub in Europe. By now trading and clearing listed FX derivatives on Eurex, Santander Asset Management benefits from low exchange fees and regulatory certainty within the EU.”

Santander Pioneers FX Options Trading at Eurex with Deutsche Bank Collaboration

Additionally, Santander intends to open an FX options company at Eurex. They executed the first-ever FX options block trade at Eurex with support from Deutsche Bank. 

Head of Derivatives at Santander Asset Management Imanol Urquizu: “We look forward to working with Eurex to expand our listed FX business in Europe. In addition to our engagement in FX futures, we actively collaborate with multiple FX dealers to explore the trading of FX options at Eurex. Integrating FX futures and FX options within the Eurex ecosystem unlocks operational efficiencies and enhances our risk netting capabilities.”

Deutsche Bank and Santander Boost FX Liquidity on Eurex

Mario Muth, Head of Fixed Income Market Structure and Global Head of Platform and Listed Derivatives Sales at Deutsche Bank: 

“Deutsche Bank is pleased to provide liquidity to the FX segment at Eurex and is proud to partner with Santander Asset Management to deliver this important initiative. Trading FX on Eurex enables clients to benefit from the efficiencies of a listed derivatives market, and this is a prime example of how Deutsche Bank partners with clients and trading venues to provide liquidity and solutions in the evolving FX market.”

Volumes at Eurex have nearly tripled from 600,000 contracts traded in 2020 to over 1.7 million futures traded in 2023. To 586k traded contracts in the first quarter of 2024, a 16 percent increase over Q1 2023.

About Eurex

With Eurex Clearing, Eurex is not only the top European derivatives exchange but also one of the world’s top central counterparties. We provide our clients with cutting-edge risk management solutions since we are the creators of reliable markets that are marked by efficiency, honesty, and market liquidity.

Overview of Santander Asset Management

With solid foundations in both Europe and Latin America, Santander Asset Management is a worldwide asset manager. It has been in operation for more than 50 years, spans ten countries, and manages assets of EUR 217 billion in a variety of vehicles, including institutional mandates, mutual funds, pension plans, and alternative investments. Customized fixed income and equities mandates for Latin America and Europe are among its investing options. 

About Deutsche Bank

Deutsche Bank offers a range of banking services, including savings accounts, loans, and investment help for people and businesses. They also work with governments and large investors. Deutsche Bank is the top bank in Germany, has strong connections in Europe, and operates worldwide.