The international derivatives exchange, Eurex has expanded its product range by including agricultural derivatives asset class. As a result, Eurex clients are now able to trade four new agricultural contracts, futures on European processing potatoes, potatoes for the British market (London Potatoes), piglet and hog futures.
Eurex has said that all four futures will be settled in cash, with the market price indices based on recognized price determination as underlyings. Participants will be able to trade all four agricultural contracts free of charge for the rest of July 2009 and from August to October 2009, for only 50% of the transaction fee.
Eurex’s international platform aims to attract new participants to agricultural futures market from the financial sector. Participants from underlying and futures markets in Germany, the Netherlands, France, Switzerland, Scandinavia and the UK showed interest in the new Eurex agricultural products during the consultation phase. Eurex has said that the product range is set for expansion next year in consultation with market participants.
Michael Peters, member of the Eurex executive board, said: The new derivatives give market participants the opportunity to protect themselves from increasing price risks in the agricultural segment. Our new contracts are aimed at a broad group of clients, including farmers and agricultural cooperatives, trading and slaughter companies and the processing industry.
Eurex is jointly operated by Deutsche Börse AG and SWX Swiss Exchange. Eurex offers derivative contracts such as the fixed income futures Euro-Schatz, Euro-Bobl and Euro-Bund Futures.
