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Nov 18, 2005

Eurex

Information on Market-Making

In their session on November 2, 2005, the Management Boards of the Eurex Exchanges approved the following decisions on Market-Making, effective December 1, 2005:

  • Phasing out of the fee rebates for Market-Making on Request (RMM) for all liquid products, which means products in which permanent quotation is already guaranteed on a sufficiently high-quality level. A list of Eurex equity and equity index options with information in which products RMM will be phased out is attached to this circular. All current RMMs will retain their status as Market Makers, keep their Maccounts and will have continued access to all quoting functions.
  • All RMMs will receive preferential treatment for closing out M-account positions in any product concerned.
  • The introduction of an alternative Permanent Market-Making scheme (PMM Long/PML) for the most liquid equity index options. Compared to the currently available Permanent Market-Making obligations, this new scheme focuses on maturities between eighteen months and five years.
  • With the introduction of harmonized exercise prices on November 21, 2005 (see Eurex circular 212/05) additional exercise prices will be generated in certain equity options. This is true mainly for the first three expiration months. Existing exercise prices which then become redundant will be deleted from the system, if there is no open interest.

Market Status ⓘ

XEUR

The market status window is an indication regarding the current technical availability of the trading system. It indicates whether news board messages regarding current technical issues of the trading system have been published or will be published shortly.

Please find further information about incident handling in the Emergency Playbook published on the Eurex webpage under Support --> Emergencies and safeguards. Detailed information about incident communication, market re-opening procedures and best practices for order and trade reconciliation can be found in the chapters 4.2, 4.3 and 4.5, respectively. Concrete information for the respective incident will be published during the incident via newsboard message. 

We strongly recommend not to take any decisions based on the indications in the market status window but to always check the production news board for comprehensive information on an incident.

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