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Jul 31, 2014

Eurex Clearing

Foreign exchange (FX) derivatives: Amendment to Market-Making incentive scheme for FX options

On 27 May 2014, it was announced in Eurex Clearing circular 067/14 that Eurex Clearing will offer clearing services for FX futures and FX options on six currency pairs traded on Eurex Exchange. Subsequently, on 20 June 2014, Eurex Clearing circular 079/14 highlighted the introduction of various Market-Making incentive schemes.

This circular describes the amendment to the Market-Making scheme for FX options. The quotation obligations for FX options in the quarterly expirations Q1, Q2 and Q3 have been changed to nine out of 15 strikes (instead of the previous obligation to quote five out of 15 strikes in these quarterly expirations). Please see Eurex circular 170/14 for further details on the amendment of the scheme.

The remaining parameters for FX options Market-Making scheme will remain unchanged. There are no changes to the FX futures Market Making scheme.