Matthias Graulich spoke with Julie Ros at the FIA IDX conference in London recently. Ros asked him about Eurex’s new STIR partnership. A couple of years ago Eurex launched a program for interest rates, swaps, and repos and they recently expanded the program to cover short term interest rate derivatives, he told her. “We grant virtual equity to the best performing partners, meaning we grant governance rights and share revenues on a perpetual basis to those who best support the success of this initiative,” he said.
There is also a scheme for liquidity providers to ensure liquidity from day one, he added. And he said that delivering the full product suite on the euro yield curve is consistent with Eurex’s mission to become the home of the euro yield curve.
She asked him about the timing of the partnership – why now? He talked about the progress Eurex has made in delivering the value proposition they have built out: the OTC IRS clearing service has gained a 20% market share and significant takeup on the repo side. He also mentioned the exchange’s goal of supporting the strategic autonomy agenda of the European Commission by balancing political interest with a market driven approach, in order to avoid having the regulator enforce more draconic measures.
Ros also asked who Eurex’s partners are in the financial sector.
The relaunch of the STIR project is planned for the fourth quarter of 2023.