Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — Deutsche Börse Group — Investor Day (November 2024)
18 slides from Deutsche Boerse's investor day presentation, Nov 26, 2024
Slide 1: Business Deep Dive: Trading & Clearing – Fixed income
Business Deep Dive Trading & Clearing – Fixed income 26 November 2024
Slide 2: Trading & Clearing: A high-value, multi-asset class setup
Trading & Clearing: A high-value, multi-asset class setup High-Value Platform Businesses Benchmark Futures + Options Foreign Exchange Swap Clearing OTC financial instruments REPO Trading + Clearing Equity derivatives Digital Asset Trading FX Futures + Crypto derivatives Digital Asset Custody Exchang
Slide 3: Trading & Clearing Horizon 2026 – continued strong organic growth momentum
Trading & Clearing Horizon 2026 – continued strong organic growth momentum Net revenue | €bn Developments in the context of Horizon 2026 7% CAGR1 ▪ Fixed Income Roadmap as key strategic growth lever 8% CAGR1 Financial across Euro futures, OTC clearing and Repo ~2.8 Derivatives ▪ Continued strong fix
Slide 4: Eurex' fixed income business has a trajectory of strong growth and diversification
Eurex’ fixed income business has a trajectory of strong growth and diversification into new revenue pools 2017-24 Net revenue Growth €m ▪ Recovery of European fixed income derivatives markets following increasing net EU government debt levels, rates FI ETD >2x increase und uncertainty around future
Slide 5: Home of the Euro Yield Curve – a unique value proposition
Home of the Euro Yield Curve – a unique value proposition Products Volumes Margin pool (YTD, both sides) (cross margin potential) Margin efficiencies Second largest liquidity pool globally for €35tr between OTC and ETD positions; OTC EUR interest rate swaps notional outstanding Collateral planned ex
Slide 6: Strong value proposition flanked by partnership approach
Strong value proposition flanked by partnership approach Overview of Eurex’ Fixed Income Partnership Programs Highlights Active Partnership Programs for OTC IRD, Repo and STIR, further 1 extension to Credit planned 40 11 Focus on market driven solutions offering long-term revenue sharing and 2 gover
Slide 7: Eurex on track to contribute €300m Fixed Income Roadmap to Horizon 2026
Eurex is on track to contribute an ambitious €300m Fixed Income Roadmap to DBAG’s Horizon 2026 Net revenue Top organic growth levers Deep dive €m +13% CAGR ▪ Underlying rates market growth OTC Clearing A ~760 ▪ Dynamics in dealer-to-client business ~300 ▪ Buy-side demand for cleared repo Repo Busine
Slide 8: OTC IRD: Developing a strong liquidity profile with partnership banks
XYDeveloping A a strong liquidity profile together with partnership banks has set the grounds for significant volume growth 2024 Notional outstanding1 | Market share1 Avg. daily volume | Market share1 +8%2 +13%2 OTC IRD 35 19% 215 9% Trillion € Billion € Eurex Clearing liquidity available across Str
Slide 9: OTC IRD: EMIR active account requirement will lead to account activation
XYBased A on strong liquidity profile and value proposition the EMIR active account requirement will lead to account activation Net revenue Growth levers 2024 €m ~35% CAGR Onboarded clients >100 > 660 400+ expected onboardings and CMs1 Activation rate – EMIR Active Account Requirement will 33% Buy-s
Slide 10: Repo: Substantial and steady growth based on strong value proposition
XYRepo: B Eurex' repo offering has seen substantial and steady growth over the last years based on a strong value proposition 2024 CAGRʼ17-ʼ24 Notional outstanding1 | CAGR ʼ17-ʼ24 | Market share Selected strategic client wins Dealer GC Pooling to Dealer >600 +15% ~25% Billion € (D2D) Special Repo De
Slide 11: Repo: GC Pooling expansion, buy-side expansion and special repo share gains
XYRepo: B Further GC Pooling expansion, buy-side expansion & special repo market share gains are growth drivers in repo Total EUR repo market in Europe: ~€5.5tr1 Growth levers 2024 Uncleared Centrally cleared Cleared by Eurex >€130bn term ▪ Further recovery of interbank lending D2D GC Pooling ~20% ~
Slide 12: FI ETD: European government bond derivatives sees continuous growth
XYFI C ETD: European government bond derivatives sees continuous growth trend driven by increasing government debt levels Total European Government Debt, Eurex LTIR, Bund yield and implied IR Volatility Key Performance Indicators (baseline 2012=100) 250 Total Debt Volume Eurex LTIR Eurex LTIR Implie
Slide 13: FI ETD: Positive market environment and new product opportunities
XYFI C ETD: Positive market environment for government bond futures and new product opportunities drive size of revenue pool Q3/2024 Average daily volume Growth levers +23% 5% Driven by positive interest rate German gov LTIR 3.6 bonds Mid-term growth expectation environment and increasing government
Slide 14: STIR: Unique window of opportunity from efficiencies and political ambitions
XYIncreasing C focus of participants on efficiencies with tailwinds from political ambitions offer unique window of opportunity in STIR Q3/2024 Average daily volume | Market share1 Open interest | Market share1 18x2 €STR 97k 54% 276k 27% contracts contracts 5x2 Euribor 92k 6% 117k 2% contracts contr
Slide 15: Futurization in credit builds further traction
XXFuturization D in credit builds further traction and offers significant mid-term revenue opportunity 20 2.5 18 Progress 16 2.0 14 12 1.5 10 ▪ Excellent liquidity picture compared to competing peers – 13 on-book 8 1.0 6 and 7 off-book LPs 4 0.5 2 ▪ >40 buy-side firms already actively trading - 0.0
Slide 16: Futurization in FX creates efficiencies for buy-side and sell-side
E Futurization in FX creates efficiencies for buy-side and sell-side participants XX through innovative product suite and unique funding efficiencies in € collateral pool Eurex FX volumes 2018–24 YTD Highlights Roll Highlights1 Per annum, in million contracts 2.3 1.7 1.7 90bn 9bn 14bn 2bn 0.6 0.7 To
Slide 17: Summary key messages and outlook
Summary key messages and outlook ▪ Eurex has built a unique, convincing and sustainable value proposition centering around the "Home of the Euro Yield Curve" ▪ Key drivers for further adoption of Eurex value proposition are the increasing focus on margin and capital efficiencies driven by higher fun
Slide 18: Disclaimer
Disclaimer Cautionary note with regard to forward-looking statements: This document contains forward-looking statements and statements of future expectations that reflect management's current views and assumptions with respect to future events. Such statements are subject to known and unknown risks