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Apr 19, 2016

Eurex

Treatment of derivatives on shares, Single Stock Dividend Futures, Exchange Traded Funds (ETFs), Exchange Traded Commodities (ETCs) and Xetra-Gold® in case of a delisting of an underlying

The Exchange Council of Eurex Deutschland and the Board of Directors of Eurex Zürich AG decided in their sessions on 10 March 2016 and 7 April 2016, respectively, to amend the Exchange Rules for Eurex Deutschland and Eurex Zürich (Exchange Rules) effective 25 April 2016.

Furthermore, the Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG decided in their session on 4 February 2016 to amend the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland and Eurex Zürich (Contract Specifications) effective 25 April 2016.

With the amendments, the regulation of the procedures regarding the treatment of derivatives on shares, Single Stock Dividend Futures, Exchange Traded Funds (ETFs), Exchange Traded Commodities (ETCs) and Xetra-Gold® in case of a delisting of an underlying will be revised, provided that the delisting:

  1. is not part of a corporate action (e.g. take-over) which is already regulated by the Contracts Specifications or
  2. is a consequence of liquidation, insolvency or similar actions of a company.

Rationale for the revision is that the Exchange Rules only deal with the superior regulation regarding the exclusion of physical delivery and the discontinuation of trading, whereas in the Contract Specifications, the applied procedures are explained in detail.

In addition, if the reference market of the underlying share is changed within the electronic trading system of Euronext Exchanges Euronext Brussels, Euronext Paris and Euronext Amsterdam, the Management Board of Eurex Deutschland and Executive Board Eurex Zürich AG may change the cash market-ID for a contract and thus determine a relevant cash market other than the cash market determined upon the introduction of the contract.

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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