18 Nov 2020

Eurex Clearing

Eurex Clearing Readiness Newsflash | Extension of trading and clearing hours for additional selected benchmark futures on Eurex

Eurex Clearing Readiness Newsflash | Extension of trading and clearing hours for additional selected benchmark futures on Eurex


Dear Clearing Member,

With this newsflash, Eurex Clearing would like to remind Clearing Members of the extension of trading and clearing hours for additional selected benchmark futures, as announced in Eurex Clearing circular 093/20.

The following products are in scope for the extended trading hours as of 7 December 2020:

Equity Index Futures:

  • FESB – EURO STOXX® Banks Futures 
  • FXXP – STOXX® Europe 600 Index Futures 
  • FVS – VSTOXX® Futures 

Fixed Income Futures:

  • FOAT – French Euro-OAT Futures (10 year)

Please be informed of the extended hours for the respective futures:

  • Pre-Trading / Start of clearing: 08:00 SGT / 01:00 CET / 02:00 CEST
  • Pre-Opening: 08:10 SGT / 01:10 CET / 02:10 CEST
  • Continuous Trading: 08:15 SGT / 01:15 CET / 02:15 CEST
  • Closing: 05:00 SGT / 22:00 CET - Extended for Fixed Income product (FOAT), unchanged for equity and volatility index products (FESB, FXXP and FVS)
  • End of clearing: 22:30 CET

With this newsflash, we want to provide Clearing Members with additional guidance to support clearing activities during the extended hours:  

  • Clearing Members should ensure the correct clearing contact details are provided in the Eurex Clearing Member Section on the following path: 
    Contacts > Your internal contacts > Trading & Clearing Contacts > Category “Extended Hours Trading”
  • Clearing Members should ensure technical back-office connectivity (either in-house connectivity or with ISV) to C7 is set up  
  • Clearing Members can set up automatic instructions (give-ups, take-ups, O/C, etc) for the new times.
  • Clearing Members are also recommended to align with respective Trading Members on their participation in the extended trading hours to assure smooth operations for the above-mentioned products during the extended trading hours.

Clearing Members should be prepared to support clearing activities during those hours and in case a margin call is triggered. Margin calls during the extended trading hours can be fulfilled in Australian dollar (AUD), or via existing U.S. dollar (USD) payment infrastructure, or alternatively via a manual cash transfer. 

To prevent potential intraday margin calls during the extended trading hours, Clearing Members should consider below measures: 

  • Pledge additional cash and non-cash collateral with Eurex (i.e. over-collateralisation) during regular hours on the preceding business day, or
  • Define a Permanent Cash Balance (PCB) to establish a cash buffer, which is automatically restored on a daily basis, or
  • Actively manage the total margin requirement by entering risk reducing trades, or
  • Depending on your business, strategies and the needs of your clients, it may also be an option to delete your own open orders from the order book prior to Asian trading hours before market opening, to avoid position changes and hence margin calls during Asian trading hours.

There is no change to report availability. 

Information about the trading hours extension can also be found on the Eurex website www.eurex.com under the following link: 

Trade > Trading hours > Trading Hours Extension

If you have any further questions or comments, please send an e-mail to: client.services@eurexclearing.com.

Kind regards,
Your Client Services Team
 

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Recipients:


All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG and vendors

Target groups:

Front Office/Trading, Middle + Back Office, IT/System Administration

Contact:

client.services@eurexclearing.com

Web:

C7 Release 7.0 initiative page


Eurex-Clearing-Readiness-Newsflash-Extension-of-trading-and-clearing-hours-for-additional-selected-benchmark-futures-on-Eurex-