Eurex squashes butterflies with Stir incentives
Rebate caps on low-risk strategies flatten mid-curve bulge in €STR contracts
A recent adjustment to Eurex’s incentive programme for liquidity providers in short-term interest rate (Stir) products has reduced the amount of activity it sees in the middle of the euro short-term rate (€STR) curve and boosted trading in near-term maturities – though open interest in front-month contracts still lags.
The update to Eurex’s incentive scheme, made last October, capped the number of butterfly trades that count towards thresholds that liquidity providers must meet to claim a share
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