MSN MoneyCentral – Eurex, the derivatives exchange, is to cut trading fees by up to 30 per cent on certain high-volume futures and options contracts in an attempt to attract more business fromalternative investors such as hedge funds.
The exchange operator, owned by Deutsche Börse and SWX Swiss Exchange, said it would reduce prices in order to increase volumes in proprietary trading and computer-based algorithmic trading.
The move by the world’s largest derivatives exchange mirrors efforts elsewhere in the industry to capture more hedge fund business, which has emerged as a crucial pool of liquidity over the past two years, contributing to the momentum of annual volume growth above 25 per cent.
The Chicago Mercantile Exchange has established a dedicated team to attract more alternative investment business, especially from smaller investment companies that fall outside the scope of the prime brokerage services provided by large investment banks.
