Transaction Management

The terms “transaction”, “transaction management” and “transaction adjustment” apply for any transaction in clearing, this includes new on-book trades (central order book), TES trades (pre-arranged trades entered to the exchange system via T7 Entry Service), as well as transactions resulting from trade or position adjustments.  

Transaction Adjustments

The following transaction adjustments are available: 

  • Transaction separation: members may split one transaction into several smaller ones via transaction separation. The whole quantity of the original transaction must be distributed among the new transactions.
  • Transaction adjustment: the general transaction adjustment is used to modify text fields, member and beneficiary information for cooperation products (KRX) and own reference ID.
  • Transaction open/close adjustment: members may change the open/close flag for a specific transaction i.e., a Member can adjust an opening transaction into a closing transaction and vice versa.
  • Transaction account transfer: members can transfer transactions to another account. However, this transfer is only possible within their own transaction accounts.
  • Average price processing: the average price processing functionality allows merging of multiple transactions into one transaction with an average price calculated by Eurex Clearing. 
  • Give-up/take-up: members can transfer transactions to other Members via a give-up. Give-up/take-up requires the approval/acceptance of the initiating and receiving Member, as well as their respective Clearing Members. 

Position Adjustments

The following position adjustments are available: 

  • Position close-out/re-open: members can close-out and re-open positions manually. Closing-out positions reduces the long and the short side of the position equally. Previously closed-out positions can be re-opened. 

  • Automatic position close-out: members can optionally instruct the system to automatically close-out open positions during the end-of-day processing; this can be activated per transaction account. Configured close-out rules will be executed during the daily end-of-day processing (including on expiration day of contracts) before exercise/assignment processing. 

  • Position account transfer: positions can be transferred to a different account and partial transfers are supported. 

  • External position transfer (with/without cash): positions can be transferred to another Member (external position transfer). All external position transfers are real-time and can optionally carry a cash amount. External position transfers require the approval/acceptance of the initiating and receiving Member, as well as their respective Clearing Members. 

  • Exercise/assignment: Open long positions can be manually exercised. When a long position in options is exercised, the system randomly selects an option seller from among all open short positions of the same option series who will be assigned that exercise: the assigned seller will be obliged to fulfill the contractual conditions for delivery or receipt of the underlying. 

  • Automatic exercise:  members can maintain rules for the automatic exercise processing by setting minimum in-the-money (ITM) amounts per product and transaction account. Upon processing of the automatic exercise all positions that are sufficiently in-the-money and not abandoned are exercised. Note that automatic exercise only applies on the expiration day, regardless of the option style (American/European). 

  • Abandon/unabandon: To exclude an option position (total or partial) from automatic exercise, Members can use the Abandon functionality. 

  • Notification/Allocation: Notification is done by Clearing Members that hold short positions in physically settled products to indicate their choice of deliverable from a basket via notification on the expiry date. Once the notification process is completed, the securities nominated in the notification process are randomly allocated by the Clearing House to the holders of the long position in physically settled products. 

  • For more information, please refer to: Transaction management listed derivatives.

Clearing Interfaces

Members can use the C7 Derivatives Clearing GUI for all transaction and position management functionality in all transaction accounts as well as maintenance of product assignment and auto approval for give-up/take-up. 

  • For more information, please refer to “C7 - Derivatives Clearing Functional Reference” under “Overview and Functionality” under the following path: Support > Initiatives > C7 Releases.
  • Please also check the C7 Clearing GUI - User Manual under “Eurex Clearing GUIs” in the same location. 
  • Additionally, the Eurex Clearing FIXML Interface fully supports transaction and position management on all transaction accounts. The interface also carries public broadcasts (e.g., settlement prices). 
  • For more information, please refer to “Eurex Clearing Interfaces”  on our C7 Releases section. Please select the latest release version and go to: System Documentation > Interfaces.

FAQ

1. Until when are transactions adjustable?

Transactions are adjustable for a limited period, known as the transaction duration. The limit is set to allow adjustments on T=trade date until T+2 for ECC (European Commodity Clearing AG) and T+ 5 for ECAG (Eurex Clearing AG). 

2. How adjustments are processed, what is the booking logic?

  • Transactions are identified by a unique C7 transaction ID and a transaction type which indicates if the transaction a new trade, new TES trade or a clearing adjustment such as give-up, exercise, etc. Each transaction also carries a 10-digit numeric suffix that increases with each adjustment. 
  •  C7 processes transaction adjustments in two steps. In a first step, a transaction is generated that inverse-books the original transaction. This record receives the next available suffix and references the parent suffix ID. On the GUI, the inverted transaction is marked with status “inverse”. The original record will be marked with the status “adjusted”, which signifies that the record cannot be adjusted further. 
  • The next step is an adjusted transaction, which is then booked. This record receives the next available suffix (or suffixes, in case of separation) and references the parent suffix. 
  • Position adjustments such as exercise or close-out generate a new transaction ID (suffix 0) that is not adjustable. 

3. Where can I find Corporate Action Information such as stock split, merger, spin-off and more?

Our Corporate Action Information is here available: Corporate Action Information.

4. Can Clearing Members perform transaction adjustments for their Disclosed Clients with Member ID?

  • Only if an outsourcing agreement is in place: Eurex Clearing offers simplified outsourcing of back office functions via FIXML and via the C7 Derivatives Clearing GUI. 
  • The simplified outsourcing mechanism is exclusively available for Clearing Members (CMs) insourcing back-office functions of their Disclosed Clients (DCs) and DC Market Participants. A user on the Clearing Member side can log into the GUI using the own Member ID/User ID and can initiate requests for transaction or position management out of the DC Market Participants position account. 
  • To apply for simplified outsourcing, the Announcement of Outsourcing of Back-Office Functions of Eurex Clearing DC Market Participants can be requested via your Key Account Manager. 

5. Will In The Money (ITM) option positions be automatically exercised?

Open positions are automatically exercised on expiration day when the defined minimum in-the-money-amount is met. A default minimum in-the-money amount is defined for all Eurex option products (0.01 for products denominated in currencies with 2 decimal places and 1 for GBX products). To prevent auto-exercise of ITM positions it is necessary to Abandon the position before the clearing cut-off time. 

6. When do I know it is the End of assignment for today?

Eurex Clearing publishes a newsboard message daily with the title “End of assignment EUREX”, this usually happens shortly after 20:30 CET. Please check: Production Newsboard.

7. At what price is the External position transfer processed?

At the previous night’s settlement price for future style products and 0 (zero) for premium style products. The user can adjust theprice by entering a cash adjustment price or a cash amount. There is a fee for Position Transfer with Cash, please refer to the Eurex Clearing Price List. 

If you require further information, please contact us at client.services@eurex.com.