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Jul 21, 2017

Eurex

Redesign of Eurex Market-Making in the context of MiFID II

With the inclusion of Market-Making in the German MiFID II  Implementation Act, 2. FiMaNoG, new German BörsG §26c (1)) a new regulatory requirement has been introduced.

As of January 2018, Market-Making at Eurex Deutschland and Eurex Zürich (collectively: the Eurex Exchanges) will be redesigned. The following two changes are planned:

1) Retention of the existing, commercial Market-Making with changes in the contractual framework, renaming to Liquidity Provider (LP) and introduction of incentives for quotation during Stressed Market Conditions and

2) Introduction of a Regulatory Market-Making (RMM) governed by the Exchange Rules of Eurex Deutschland and Eurex Zürich due to new MiFID II requirements.

The approval of the draft changes outlined in this circular by the relevant bodies, such as the Exchange Council, the Board of Directors and the competent authorities, as well as further detailing of the changes are in preparation and are expected for November 2017.

 

The circular contains a description of the planned changes to the Eurex Market-Making concept.

Market Status

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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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