Euronext Bets on Mini Bond Futures to Lure Traders From Eurex

Euronext has launched a suite of mini futures contracts tied to benchmark European government bonds, in its latest push to expand in fixed income and loosen Eurex’s grip on the euro rates market.

The contracts—listed on Euronext Derivatives Milan—cover the 10-year French OAT, German Bund, Spanish Bono, Italian BTP and, for the first time, a 30-year BTP. Each is cash-settled with a €25,000 notional size, a quarter of the standard size on rival platforms, and clears through Euronext Clearing in Rome.

Anthony Attia, global head of derivatives and post-trade at Euronext, said the launch “comes at a crucial time for the European fixed income ecosystem, which is currently experiencing high volatility levels.” He added the contracts are part of the group’s “Innovate for Growth 2027” plan, aimed at widening its derivatives line-up.

A Smaller Slice of a large Market

By going with smaller contract sizes and cash settlement, Euronext is targeting asset managers, hedge funds and even wealth channels that find the €100,000 notional and physical delivery of unwieldy. The platform is betting that trimming down the product will broaden hedging access while still drawing liquidity from its in-house bond trading venues.

Euronext is leaning on its MTS platform, the dominant institutional marketplace for euro-denominated government bonds, as well as MOT, its retail bond market. Both came under its umbrella in 2021, when the group acquired Borsa Italiana from Group for €4.4 billion. That deal also delivered CC&G, the Italian clearing house that has since been rebranded Euronext Clearing.

Bringing those assets together was central to Euronext’s pitch of becoming a vertically integrated market operator. The mini futures launch is one of the clearest signs yet that the group is putting those pieces to work.

Eyeing Eurex

Eurex, part of Deutsche Börse, has long dominated trading in eurozone sovereign debt futures, with decades of liquidity built around its deliverable Bund, Bobl, Schatz and BTP contracts. Its deep repo links and benchmark status have made it the default venue for global investors.

But competition is heating up. ICE has been building out its euro-sovereign product suite, while Euronext is trying to leverage its southern European franchise to carve out a niche. Smaller, cash-settled contracts may not topple Eurex’s dominance overnight, but they could chip away at it by who have struggled with the size and collateral demands of the legacy products.

The derivatives rollout also comes as Euronext looks further afield. In July the company confirmed talks to acquire the Athens Stock platform (ATHEX) in a deal valuing the venue at around €399 million. A successful takeover would give Euronext a foothold in southeast Europe, adding listings, that could support its fixed income ambitions.

For now, the group is betting that a fresh approach to bond futures—smaller, cash-settled and backed by its own trading and clearing infrastructure—will assist it peel . Whether investors migrate from Eurex’s deeply liquid contracts will determine if the launch is a niche play or the begin of a larger shake-up in Europe’s rates trading.