[ T H O U G H T L E A D E R S H I P | E U R E X ]
Michael Peters strong liquidity pool for clearing euro-denominated interest rate swaps , mainly through our partnership program . This market-driven initiative is designed to further accelerate the development of a liquid , EU-based alternative for clearing OTC interest rate derivatives .
Another big topic is the clearing of repo transactions for the buyside , where with our new ISA Direct Indemnified model we can expand our existing buy-side offering to more target groups and include hedge funds in addition to pension funds and insurance companies , allowing them to become direct clearing members for the repo markets .
by underlying or exogenous markets . After two years , we can see that it contributes to a level playing field and a more attractive order book . PLP not only ensures fairer competition . It also prevents latency arbitrage and strengthens the diversity of trading participants .
You mentioned innovation , can you give us some examples ? MP : We launched a new range of micro futures , which achieved an average daily volume of nearly 20,000 contracts after six months , as well as , Bitcoin ETN futures – the first regulated market for Bitcoin-related derivatives in Europe – ESG futures for Fixed income Indices . With the new Bitcoin contract , we offer our clients access to the price of Bitcoin in a regulated , exchangebased and centrally cleared environment . These futures are the starting point of a family of products that we plan to bring to market over time in consultation with regulators . All figures mentioned are as of October 2021 .
Innovation can be a direct response to increasing market demand , but ingenuity can also be a direct response to market challenges . One of the biggest challenges investors faced last year was the uncertainty and risk associated with expected dividend payments . Participants wanted to either avoid or hedge this risk , but annual expiry dates alone no longer covered the risk of dividend uncertainty . In response , we introduced quarterly expiry dates in October 2020 . Since then , around 2.2 million contracts have already been traded , representing 28 % of the total volume of single stock dividend futures .
But let ’ s not just look at the exchange side . We have also seen great developments and innovations at Eurex Clearing and Repo . The launch of a clearing service for deliverable crosscurrency swaps and OTC FX once again underlines our Group ’ s ambition to support the transition from OTC to central clearing
We continued to develop a
What are your predictions for the future ? MP : Looking ahead to the rest of 2021 and beyond , we see several structural factors shaping our exchange and its strategy , along with cyclical developments .
The first is futurisation , driven by the increasing demand for listed and CCP-cleared derivatives following regulatory reforms such as the Uncleared Margin Rules . The second is the shift from active to passive investing , and the third is the importance of ESG . The shift towards more sustainability and social and environmental responsibility is in full swing . Functioning capital markets are a prerequisite for the success of this change .
Finally , digital assets will change the financial industry . There is a growing demand from established financial institutions to become active in this new asset class . We are in the process of building a trusted and fully regulated digital asset ecosystem for institutional investors in Europe .
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