Market-Making and Mistrade Ranges: Change of the measurement unit of the bid-ask spread in selected parameter files

1.   Introduction

The Management Board of Eurex Frankfurt AG took the following decision with effect from 12 June 2023:

• The renaming of the measurement unit of the bid-ask spread already announced in Eurex circular 125/22 is technically implemented and affects the files and documents specified in the Eurex circular available on the Eurex website.

As of 12 June 2023, Eurex Frankfurt AG will rename the currently applicable measurement unit of the bid-ask spread "TICK" to the unit "ABS" (absolute) to be used in the future within the listed reports and documents, which are available on the Eurex website www.eurex.com under the following links:

Trade > Market-Making and Liquidity provisioning

• Program, Product, Size and Spread Details
• XML File with Parameters for MMPM
• XSD schema for 90FILMMPARPUBLIYYYYMMDDXEUR

Markets > Product Overview > [ Product ] > Specifications > Mistrade Ranges  (exemplary)

• Mistrade Ranges

The renaming explicitly does not imply any change in the parameters already used in the files. It is merely an editorial name change.

2.   Required action

In the event that the above-mentioned measurement unit of the bid-ask spread is used by the recipients of this circular as a reference or as a basis for further calculations in other files, these should be checked accordingly and adjusted if necessary.

3.   Details of the initiative

In particular, the measure is intended to clarify possible misunderstandings in the interpretation of the previous measurement unit of the bid-ask spread "TICK". In the future, the bid-ask spread will therefore be unequivocally measured either as the absolute difference between a bid and an ask price, taking into account the respective product specifications, or as a percentage depending on the bid price. 

This change does not cause any changes to the set parameters, but only represents an editorial change. The associated renaming of the measurement unit of the bid-ask spread in the Product Specific Supplements (PSS) has already been announced in Eurex Circular 125/22.

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