Santander AM joins Eurex for listed FX business

Santander Asset Management has started trading FX derivatives business at Eurex as the trend towards listed FX business continues.

With Santander Asset Management the European derivatives exchange welcomes a further global player in its listed FX segment.

The Spanish asset manager has started expanding their FX futures business to Eurex, supported by Banco Santander as Clearing Member and Deutsche Bank as liquidity provider.

This move of Santander Asset Management underlines the trend towards listed FX business. More and more market participants are utilizing listed FX derivatives as a tool to hedge their portfolio performance. This is increasingly impacted by rising costs stemming from counterparty risk and related regulations.

Centrally cleared FX futures and options help market participants to mitigate counterparty credit risk, navigate uncleared margin rules (UMR) and optimize capital costs.

Jens Quiram, global head FIC Derivatives and Repo Sales at Eurex: “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 also plans to establish FX options business at Eurex. Supported by Deutsche Bank, they traded the first FX options block trade ever at Eurex.

Imanol Urquizu, head of Derivatives at Santander Asset Management: “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.”

Mario Muth, global head of Platform and Listed Derivatives Sales and Head of Fixed Income Market Structure at Deutsche Bank said: “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.”

With over 1.7 million contracts being traded in 2023 at Eurex, volumes have nearly tripled compared to 2020 when a total of 600k contracts have been traded. Compared to Q1 2023, the number of traded contracts increased by 16 per cent to 586k in the first quarter of 2024.

Eurex is a major European derivatives exchange and – with Eurex Clearing – one of the leading central counterparties globally. As architects of trusted markets characterized by market liquidity, efficiency, and integrity, we provide our customers with innovative solutions to seamlessly manage risk.

Santander Asset Management is a global asset manager with firm roots in Europe and Latin America. Stretching back over 50 years and operating in 10 countries, it has EUR 217 billion in assets under management across all types of vehicles, from mutual funds and pension plans to institutional mandates and alternative investments. Its investment solutions include tailor-made Latin American and European fixed income and equity mandates.

Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.