08 Oct 2020

Eurex Exchange

Equity derivatives: Introduction of new expirations for Single Stock Dividend Futures and EURO STOXX 50® Index Dividend Futures

Eurex Circular 078/20 Equity derivatives: Introduction of new expirations for Single Stock Dividend Futures and EURO STOXX 50® Index Dividend Futures


1.  Introduction

The Management Board of Eurex Deutschland and the Executive Board of Eurex Frankfurt AG took the following decisions:

With effect from 19 October 2020:

  • Introduction of quarterly maturities for certain Single Stock Dividend Futures and introduction of semi-annual maturities for EURO STOXX 50® Index Dividend Futures
  • Amendment to the relevant Product Specific Supplements of the Liquidity Provider Schemes to reflect the introduction of additional interim expirations.

In this context, Eurex Clearing AG will be introducing fee measures with effect from 2 November 2020 (see Eurex Clearing circular 081/20):

  • Fee reduction of 50 percent for certain Single Stock Dividend Futures
  • Fee adjustments in Single Stock Futures.

2.  Required action

There is no required action for participation.

3.  Details of the initiative

New maturities are made available to trading:

  • EURO STOXX 50® Index Dividend Futures: The maturities will be adjusted by introducing the next two rolling June maturities.
  • Single Stock Dividend Futures: For EUR- and CHF-denominated Single Stock Dividend Futures, new March, June and September expirations will be made available, so that at any time, the next five quarters (including December expiration) are tradable.

The introduction of the new maturities is accompanied by pricing measures for Single Stock Dividend Futures and Single Stock Futures. Please refer to section C. for more details.

A. Contract specifications

For the detailed Contract Specifications, please see Attachment 1 to this circular.

The updated Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland will be published on the Eurex website www.eurex.com as of start of trading under the following link:

Rules & Regs > Eurex Rules & Regulations > Contract specifications

B. Liquidity Provider schemes

The two relevant Product Specific Supplements (PSS) shall be amended with effect from 19 October 2020 to reflect the introduction of the new interim maturities. 

All further information can be found in the attached PSS documents (Attachments 2 and 3). 

The Product Specific Supplements to the Liquidity Provider Agreement shall be amended according to Attachments 2 and 3. The amendments will be deemed to have been approved if the Liquidity Provider does not lodge objections within fifteen (15) business days of notification of the amendment according to clause 2 (4) of the Liquidity Provider Agreement.

C. Adjustment of transaction fees

To accompany the introduction of the quarterly expiration in Single Stock Dividend Futures, Eurex will introduce differentiated transaction fees based on the remaining time to expiration of the contract traded. Transaction fees on shorter dated expirations of EUR- and CHF-denominated Single Stock Dividend Futures, i.e. with less than 13 months to expiration, are reduced by 50 percent.

For Single Stock Futures, the fee for delivery resulting from Futures (section 3.9 of the Price List of Eurex Clearing AG (Price List)) will be reduced from EUR 0.15 to EUR 0.10 and from CHF 0.23 to CHF 0.15, respectively, per contract. Furthermore, a maximum fee of EUR 450 (USD 690, CHF 690, GBP 360, respectively) for delivery resulting from Futures and cash settlement (section 3.4 of the Price List) will be introduced.

The described pricing measures will become effective as of 2 November 2020. Please see Eurex Clearing circular 081/20.

As of the effective date, the full version of the amended Price List will be available for download on the Eurex website www.eurex.com under the following link:

Rules & Regs > Eurex Rules & Regulations > Price List


Attachments:

  1. Updated sections of Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland
  2. Product Specific Supplement (PSS) to the Liquidity Provider Scheme for Single Stock Dividend Futures
  3. Product Specific Supplement (PSS) to the Liquidity Provider Scheme for Dividend Futures on EURO STOXX 50® Index


Further information

Recipients:

All Trading Participants of Eurex Deutschland

Target groups:

Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination

Contact:

client.services@eurexchange.com 

Related circular:

Eurex Clearing circular 081/20

Web:

www.eurex.com

Authorised by:

Randolf Roth


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