The Mid-Term Euro BTP Future is based on notional medium-term bonds issued by the Republic of Italy (Buoni del Tesoro Poliennali – BTP).
Eurex said that the new contract will complement its interest rate derivatives offering for all A and AA-rated European government bonds as well as for other interest rate instruments and will serve as an ideal hedging instrument for this market segment.
Peter Reitz, member of the Eurex Executive Board, said that the success of their two listed BTP futures increased the demand among their customers for the yield curve to be completed.
"Our new BTP future covers medium-range maturities, creating new, additional trading opportunities," Reitz added.
The Mid-Term Euro BTP Future will be based on deliverable bonds with a residual maturity of 4.5 to 6 years and an original maturity of not more than 16 years; the notional coupon will be 6% and the contract value will be EUR100, 000, as for the existing futures contracts.
The minimum tick size will be fixed at 0.01% (EUR10 per tick) in line with the tick sizes of the other BTP, Bund and Bobl futures.
