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.<\/p>\n
The exchange operator, owned by Deutsche B\u00c3\u0192\u00c2\u00b6rse and SWX Swiss Exchange, said it would reduce prices in order to increase volumes in proprietary trading and computer-based algorithmic trading.<\/p>\n
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.<\/p>\n
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.<\/p>\n