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09 Nov 2017

Eurex

Redesign of the Order-to-Trade Ratio (OTR) in the context of MiFID II

As of January 2018, the Order-to-Trade Ratio (OTR) concept in place at Eurex Deutschland and Eurex Zürich AG (collectively: the Eurex Exchanges) will be redesigned. The following changes are planned:

1. Reduction of the observation period from monthly to daily.

2. Introduction of a transaction-based OTR and change of the methodology of the current volume-based OTR.

A one-month testing phase for the new OTR will start on 4 December 2017. On 3 January 2018, the new OTR regime will come into effect. This circular provides a brief description of the new OTR and further relevant information.

The changes outlined in this circular are subject to the approval by the relevant bodies, such as the Exchange Council of Eurex Deutschland, the Board of Directors of Eurex Zürich AG, and the competent authorities. Approval is expected until mid-December 2017.

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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