Santander AM Enters Listed FX Market at Eurex with Deutsche Bank

Santander Asset Management makes a strategic move by entering the FX derivatives market at Eurex, with support from Banco Santander and Deutsche Bank.

Santander Asset Management has recently entered the FX derivatives market at Eurex, marking a significant step in the ongoing shift towards listed FX trading. By joining Eurex, a prominent European derivatives exchange, Santander Asset Management has joined the ranks of global players in the listed FX segment. The Spanish asset manager's decision to expand its FX futures business to Eurex is supported by Banco Santander as Clearing Member and Deutsche Bank as a liquidity provider.

This move by Santander Asset Management underscores the growing popularity of listed FX derivatives as a tool for portfolio hedging among market participants. As costs associated with counterparty risk and regulatory compliance continue to rise, centrally cleared FX futures and options offer a way for market participants to mitigate counterparty credit risk, navigate uncleared margin rules (UMR), and optimize capital costs.

In 2023, Eurex saw over 1.7 million contracts traded, nearly tripling the volume from 2020 when 600k contracts were traded. The first quarter of 2024 also saw a 16% increase in traded contracts compared to Q1 2023, with a total of 586k contracts exchanged. Eurex, along with Eurex Clearing, stands as a major European derivatives exchange and a leading central counterparty globally, providing customers with innovative solutions to manage risk effectively.

Santander Asset Management, a global asset manager with a strong presence in Europe and Latin America, boasts over 50 years of experience and operates in 10 countries. With EUR 217 billion in assets under management across various investment vehicles, including mutual funds, pension plans, institutional mandates, and alternative investments, the firm offers tailor-made Latin American and European fixed income and equity mandates.

Deutsche Bank, a key player in the financial services industry, offers a wide range of banking and investment products and services to individuals, companies, governments, and institutional investors. As the leading bank in Germany with a global network, Deutsche Bank plays a crucial role in supporting the financial needs of its diverse client base.

Santander Asset Management's entry into the FX derivatives market at Eurex reflects the growing importance of listed FX trading as a risk management tool for market participants. With the support of key players like Banco Santander and Deutsche Bank, Santander Asset Management is well-positioned to navigate the evolving landscape of FX trading and continue to provide innovative investment solutions to its clients.