{"id":67657,"date":"2017-12-05T04:09:00","date_gmt":"2017-12-05T03:09:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/produit\/eurex-market-on-close-futures\/"},"modified":"2020-01-01T22:10:15","modified_gmt":"2020-01-01T21:10:15","slug":"eurex-market-on-close-futures","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/produit\/eurex-market-on-close-futures\/","title":{"rendered":"Eurex Market-on-Close Futures"},"content":{"rendered":"

Most futures trading for market-on-close (MOC) in Europe currently takes place on the OTC markets.
\nMarket participants usually agree on the basis in the inter-dealer-broker market and enter their futures
\ntrades into the Eurex\u00ae system after index close, which involves higher operational efforts and reduces
\nrisk management capabilities. What\u2019s more, transactions need to have a certain size, to be able
\nto participate in the OTC market, limiting access for market participants. In addition, slippage costs
\nare likely as the calculated final futures price is more precise than the available tick size of the listed
\nindex future.<\/strong> <\/em><\/p>\n

Benefiting the market: a listed solution
\nfor basis trading<\/strong><\/p>\n

Eurex Market-on-Close Futures (Eurex MOC Futures)
\nare designed to significantly facilitate MOC trading since
\nthe index futures can be traded at the underlying cash market
\nindex close ahead of its actual publication. The contract
\nrepresents the basis, defined as the difference between
\nthe current futures price and the current index cash price.
\nThe first Eurex MOC Futures will be based on EURO
\nSTOXX 50\u00ae Index Futures (FESX), covering one of the most
\nliquid index futures worldwide.<\/p>\n

Application opportunities<\/strong><\/p>\n

Eurex MOC Futures are an efficient hedging instrument
\nfor products benchmarked against the index close:
\n\u2022 Exchange-traded funds (ETFs)
\n\u2022 Index options and structured products
\n\u2022 OTC swaps and options
\n\u2022 Cash equalization and balance sheet management<\/p>\n

Key benefits<\/strong>
\n
Increased efficiency and minimized tracking risk<\/em> <\/strong>
\nMarket participants benefit from straight-through processing
\nfor Eurex MOC transactions resulting in reduced front office
\nworkload as well as lower tracking error.<\/p>\n

Enhanced market transparency and consolidated liquidity<\/em> <\/strong>
\nOn-exchange trading offers immediate liquidity and
\nprice information.<\/p>\n

Eliminated slippage risk<\/h2>\n

The smaller tick size of Eurex MOC Futures offers more
\nprecise pricing with the cash market index close level being
\nprovided with two decimals according to market conventions.<\/p>\n

Immediate availability of index futures after settlement<\/em> <\/strong>
\n
The intraday delivery of the underlying makes the EURO
\nSTOXX 50\u00ae Index Futures immediately available to market
\nparticipants during the trading session.<\/p>\n

\"how_does_eurex_moc_futures_trading_work.jpg\"<\/a><\/p>\n

Lower transaction costs<\/strong> <\/em>
\n
On-exchange trading offers capital efficiencies compared
\nto OTC business.<\/p>\n

Easy market access<\/strong> <\/em>
\n
The minimum trading size of one contract means equal access
\nto the order book for all market participants. TES Block Trade
\ntransactions are available starting at 500 contracts.<\/p>\n

Automated risk management<\/strong> <\/em>
\n
Immediately after the transaction of the basis, Eurex MOC
\ntrades will be included in the market participants\u2019 risk
\nmanagement system. As central counterparty to each trade,
\nEurex Clearing mitigates counterparty risks.<\/p>\n

Trading in Eurex MOC Futures is offered during the trading
\nday up until the cash market index close level is determined.
\nAfter publication, the exact index close level is added to
\nthe traded price of the basis (Eurex MOC Futures) to calculate
\nthe final settlement price with up to two decimals accuracy.
\nPhysical settlement into EURO STOXX 50\u00ae Index Futures takes
\nplace at approximately 18:30 CET. The EURO STOXX 50\u00ae
\nIndex Futures will be available for trading to market participants
\nimmediately after settlement.<\/p>\n

Eurex T7 Entry Services<\/strong><\/p>\n

Use our T7 Entry Services to enter bilaterally agreed off-book
\nblock trades and benefit from the advantages of centralized
\nclearing and settlement. This means that when it comes
\nto position keeping and the clearing and settlement of transactions,
\ninvestors benefit from all the advantages of a listed
\nderivative product.<\/p>\n

Contract specifications<\/strong>
\n\"contract_specifications.jpg\"<\/a><\/p>\n

Market Maker<\/strong>
\n\"market_maker.jpg\"<\/a>