09 Feb 2021

Eurex

Equity index derivatives: Introduction of Eurex Daily Futures on KOSPI 200 Futures

Eurex Circular 013/21 Equity index derivatives: Introduction of Eurex Daily Futures on KOSPI 200 Futures


1.  Introduction

The Management Board of Eurex Deutschland took the following decisions with effect from 22 March 2021:

  • Introduction of Eurex Daily Futures on KOSPI 200 Futures
  • Introduction of a new Product Specific Supplement (PSS) for Eurex Daily Futures on KOSPI 200 Futures 
  • Further editorial change to the PSS for Eurex Daily Futures on KOSPI 200 Options

This circular contains all information on the introduction of the new product and the updated sections of the relevant Rules and Regulations of Eurex Deutschland.

Production start: 22 March 2021

2.  Required action

No action is required for existing participating Members in trading of KOSPI products.

For Members wishing to newly participate, a Eurex Readiness Newsflash will be sent out soon detailing the requirements for trading Eurex Daily Futures on KOSPI 200 Futures.

3.  Details

A. Product overview

Please refer to Attachment 1 for the product.

B. Contract specifications and product parameters

For general product parameters, please find an overview in table format in Attachment 1.

For the detailed Contract Specifications, please see Attachment 2.

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

Trade > Rules & Regs > Eurex Rules & Regulations > Contract Specifications

C. Admission to the Eurex T7 Entry Services (TES)

The new products will be admitted to the Eurex T7 Entry Services (TES). Please refer to the Contract Specifications in Attachment 2 for the minimum block trade sizes on product level.

An overview of the Eurex T7 Entry Services available for the products as well as detailed information on single product basis with regard to availability, possibility of utilisation and minimum entry size for the various Eurex T7 Entry Services is available on the Eurex website under the link:

Trade > Eurex T7 Entry Services > T7 Entry Service parameters

D. Simulation

The Eurex Daily Futures on KOSPI 200 Futures (FBK2) will be available in the simulation environment as of 15 February 2021.

E. Risk parameters

As of start of trading, risk parameters of the new products will be published on the Eurex website under the link:

Trade > Data > Clearing files > Risk parameters and initial margins

and on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Clear > Services > Risk parameters

where you will also find an updated list with details regarding Prisma-eligible Eurex products. 

F. Excessive System Usage Fee and Order to Trade Ratio

The Excessive System Usage Fee and the Order to Trade Ratio were determined in line with the existing Equity Index Derivatives. For further information, please refer to the Eurex website under the following links:

Trade > Markets > Equity Index

or

Trade > Rules & Regs > Excessive System Usage Fee

or

Trade > Rules & Regs > Order to Trade Ratio

G. Mistrade parameters and position limits

Mistrade ranges and position limits for the new products will be published as of start of trading on the Eurex website under the links:

Trade > Markets > Equity Index > Eurex KOSPI Products

or

Trade > Markets > Product Overview

H. Transaction fees

The transaction fees listed in Attachment 1 will apply. For details, please refer to the current Price List of Eurex Clearing AG, available on the Eurex website under the following link:

Trade > Rules & Regs > Eurex Rules & Regulations > Price List

I. Vendor codes

At start of trading, vendor codes for the new products will be published on the Eurex website under the link:

Trade > Markets > Product Overview > Vendor product codes

J. Liquidity Provisioning

Please refer to Attachment 3 for the details regarding Liquidity Provisioning.

Attachments:

  • 1 – Details regarding product overview, contract specifications, trading hours, product group, Eurex T7 Entry Services, transaction fees
  • 2 – Updated sections of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland
  • 3 – Product Specific Supplement for Eurex Daily Futures on KOSPI 200 Futures
  • 4 – Product Specific Supplement for Eurex Daily Futures on KOSPI 200 Options


Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target groups:

Front Office/Trading, IT/System Administration, Auditing/Security Coordination

Contact:

client.services@eurex.com

Web:

www.eurex.com

Authorised by:

Randolf Roth


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