Eurex expands product range to include agricultural derivatives

Four new agricultural futures to be launched in July 2009

The international derivatives exchange Eurex is expanding its product range to include the agricultural products asset class. Trading will start in July 2009 with four new futures based on the agricultural products hogs, piglets and potato crops (London potatoes and European processing potatoes). All four futures are settled in cash. Market price indices act as underlyings which in particular increase market transparency.

Peter Reitz, member of the Eurex Executive Board, commented, “Our entry into the segment of agricultural derivatives is the systematic continuation of our strategy of covering all important asset classes with our own products. We aim to bring the well known advantages of our global network and central clearing system into this market that has had a strong national focus thus far. The strengths of the Eurex business model will accelerate international growth in this segment considerably.”

Eurex has intensively prepared its market launch together with key players in this market segment. Talks with market participants in particular in Germany and the Netherlands revealed a strong and long-term interest in hedging opportunities in agricultural derivatives on a major international derivatives exchange. Europäische Warenterminbörse Beteiligungs AG (EWB) based in Hanover is providing marketing and product development advisory support to Eurex in this process.

Plans are underway to expand the product offering of agricultural derivatives in 2010 further.

In the area of commodity derivatives the Eurex derivatives exchange already successfully launched futures and options on gold and futures on commodity indices this year. Furthermore, Eurex has announced futures and options on silver.