What are the benefits to hedge fund managers and CTAs of using Eurex for their derivatives trading?
MR: For any asset manager, but especially for those active in high turnover strategies, the cost of trading is an important factor. The most explicit cost is measured in terms of market impact. As such hedge fund managers and CTAs are generally looking for highly liquid products that they can enter and exit quickly and efficiently. In terms of Euro denominated Fixed Income and Equity Index futures and options, Eurex is by far the dominant platform in the market and it is also very strong in individual stock options. Added to this, the barriers to entry, via either direct membership or through a broker assisted order routing platform, are very low. In addition, in the current environment where returns are below historical averages, the cost of execution is increasingly a factor. Therefore, the Eurex philosophy of being the low cost provider while maintaining a “one price fits all” for all market participants via a fully electronic platform is attractive to such investors. HW: What is th
