Euronext has announced the launch of fixed income derivatives on main European government bonds.
“This innovative offering introduces the first-ever mini futures cash-settled on European government bonds, delivering unparalleled accessibility and flexibility to investors,” said Euronext.
“Designed to meet the needs of retail investors, these instruments also provide asset managers and private investors with the granularity required for hedging or taking exposure to government bonds.
“Euronext’s fixed income derivatives are powered by its state-of-the-art Optiq trading platform, ensuring high performance and accessibility for all Euronext members.
“Liquidity will be guaranteed through dedicated market makers, and trades will be cleared by Euronext Clearing, supported by a robust and efficient risk model.
“With this offering, Euronext delivers an end-to-end value chain, further enhanced by advanced colocation services for seamless trading execution.”
Euronext said it is leveraging its position in the fixed income trading ecosystem to bring this new product to market.
By building on MTS, its platform for institutional bond trading, and the retail-focused MOT bond market, Euronext said it will leverage its active retail and algorithmic trading communities, to ensure a broad appeal and the utility of this offering.
The first phase of this expansion will see the introduction of futures contracts on the Euronext Derivatives Milan market.
These contracts will focus on key European government bonds, including Italy’s 10-year and 30-year BTPs, France’s OAT, Germany’s Bund, and Spain’s Bono. The go-live date of the new derivatives products is planned for September 2025.
Anthony Attia, Global Head of Derivatives and Post Trade of Euronext, said: “The launch of our fixed income derivatives is a pioneering step that highlights Euronext’s commitment to innovation and client-centric growth.
“By entering this critical market segment, we respond to the needs of investors who seek diversified opportunities and competitive solutions.
“Euronext is now the market of choice for new listed derivatives in Europe thanks to the efficiencies created by our European clearing house, Euronext Clearing. This is a significant step forward in our strategy to expand our derivatives franchise, realising our vision of driving growth and efficiency across Europe’s financial ecosystem.”
Euronext also runs Nord Pool, the European power market. As of December 2024, Euronext’s regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway, and Portugal host over 1,800 listed issuers with around €6 trillion in market capitalisation.
The news on fixed income derivatives follows an announcement on February 11, when Euronext revealed a new collaboration with Euroclear to support the development of Euronext Clearing’s collateral management services for repo and other asset classes.
The initiative is a major step to enable Euronext’s ambition “to expand its leading Italian repo clearing franchise to a large range of European government bonds bringing an efficient value offering to European and international clients.”
Euronext Clearing will use Euroclear as its first triparty agent to enable enhanced collateral management capabilities.
“Leveraging on Euroclear’s solutions, Euronext Clearing will offer clients automated, streamlined and flexible collateral solutions, improving operational efficiency and margin and balance sheet optimisation,” said Euronext.
“Euroclear will act as an independent third party, managing the selection, valuation and substitution of collateral to ensure it meets eligibility criteria while optimising operational efficiency.
“It will also handle settlement and custody, provide regular reporting and ensure regulatory compliance, allowing clients to benefit from improved liquidity management and a reduced administrative burden.
“The support of Euroclear’s collateral management infrastructure, which handles an average in daily collateral, will strengthen Euronext Clearing’s ability to deliver efficient, scalable services that address the evolving needs of its clients, with additional partnerships expected to further reinforce this approach.
“This initiative builds on Euronext Clearing’s unique position in the Italian repo market, where it already clears a significant portion of MTS repo activity, and lays the foundation for the next phase of the Euronext Clearing repo expansion to new European geographies.”