I wonder if they're going to have micro contracts as well. With the CME rate hikes, there's some real big incentive to move over to Eurex, especially for micro futures.

I wonder if it will be cheaper as I thought the EU were about to introduce their Financial Transaction tax that will apply to any one living in the EU, anyone trading in the EU and anyone trading on an exchange based in the EU?

The tax is not final, yet.

The idea is to tax people living in the EU regardless of the location of the exchanges.


As i heard EUREX wants to give a discount on the new products for a specific time.

I wonder if it will be cheaper as I thought the EU were about to introduce their Financial Transaction tax that will apply to any one living in the EU, anyone trading in the EU and anyone trading on an exchange based in the EU?

The tax is not final, yet.
(...)

I think the biggest hurdle for these futures will be to get enough liquidity, since without deep liquidity the issue of a possible transaction tax is not relevant.

Though I like the idea of Eurex FX futures, I'm sceptical about their 'tradeability' due to low liquidity. For example, ICE also offers (pdf) EUR/USD futures, but compared to CME's 295,000 6E front-month contracts traded today, the ICE variant has only done 1,033 contracts today.

I think that's 'untradeable' and it also seems to suggest that there is not that much willingness under market participants to trade at other venues than CME.

Who offers liquidity? The banks like UBS, Deutsche Bank and so on. I read that they postponed the release date due to liquidity issues. They want to involve more liquidity providers. So I think they do care about this issue.

I see a different problem. Will your datafeed offer Eurex FX futures? I do not know. In my case I use Zen-Fire and I think they won't offer it because they already have CME FX futures.

For FX Traders: I know that the EUREX wants to introduce in 2014 a new FX futures market.

Release date: 21 Aug 2013 | Eurex Exchange
Eurex to launch FX derivatives
New product segment to start on 7 October 2013/Futures and options on six of the most important currency pairs

The international derivatives market Eurex Exchange will extend its product range by introducing a further asset class. Effective as of 7 October 2013, currency derivatives (FX contracts) will also be available as exchange-listed products. Eurex Exchange will initially offer futures and options on the following currency pairs: EUR/USD, EUR/GBP, EUR/CHF, GBP/USD, GBP/CHF and USD/CHF. The majority of over-the-counter, daily FX derivatives trading takes place in these currency pairs.

“With this step, we again contribute to increasing the transparency and safety of financial markets. The large majority of FX derivatives are currently traded off-exchange. With our listed contracts we are offering an alternative in which we bring the advantages of exchange trading, including clearing, to a market that has so far been organized predominantly bilaterally,” said Peter Reitz, member of the Eurex Executive Board. “We have tailored our offering to current market practices and want to provide efficient and effective access to a regulated and safe market.”

Eurex Exchange offers physical settlement of contracts for these products, i.e. delivery of the respective currencies via the international currency settlement system Continuous Linked Settlement, which is established in the FX market. The FX futures will be tradable from 8:00 a.m. to 10:00 p.m. CET, the FX options from 8:00 a.m. to 7:30 p.m. CET.

For this market introduction, Eurex Exchange is offering long-term incentive programs with revenue sharing in order to provide sufficient order book liquidity. Special programs for the futures and options are available for market makers.