EURO-SCHATZ

Euro-schatz futures are notional short-term debt instruments that are issued by the Federal Republic of Germany.

A number of terms are available to investors, ranging from 1.75 to 2.25 years, with yields bearing a notional coupon rate of six per cent. Contract values are for €100,000 and minimum price changes on the securities are 0.005 per cent - the equivalent of €5.

Based on the Eurex - one of the world's largest derivatives exchanges - Euro-schatz futures are just one of a number of interest rate derivative options that investors can put their money into.

These include Euro-Bobl futures, Euro-Bund futures, Euro-Buxl futures and CONF Futures - each of which has slightly different terms and contract lengths enabling traders to tailor their portfolios to specific areas of the exchange and over a certain timeframe.

First notice days for Euro-schatz investors must take place by the end of the post-trading full period on the day of the securities' maturity.

This last trading day will be determined as two days prior to the delivery day in the relevant maturity month of the derivative.

Daily trading takes place between 08:00 and 20:00 CET, with pre-trading and post-trading available, except on the last trading day, when the close of business is 12:30.

Other types of investment vehicle on the Eurex include equity derivatives, equity-index derivatives, volatility-index derivatives, exchange-traded fund derivatives and credit derivatives.

Launched in September 1997, the Eurex is a collaboration between the Deutsche Borse AG and the SIX Swiss Exchange, and the merger of the Deutsche Terminborse and Swiss Options and Financial Futures Exchange, creating a joint trading and clearing exchange providing access to derivatives markets.