14 Jan 2021

Eurex

Introduction of equity options on US shares admitted to Xetra trading

Eurex Circular 004/21 Introduction of equity options on US shares admitted to Xetra trading


1.  Introduction

The Management Board of Eurex Deutschland took the following decision with effect from 25 January 2021:

  • Introduction of seven equity options pursuant to Annex B of Attachment 2,
  • Introduction of a new Liquidity Provider (LP) scheme for equity options on US shares admitted to Xetra trading

This circular contains all information on the introduction of the new products and the updated sections of the relevant Rules and Regulations of Eurex Deutschland.

Production start: 25 January 2021

2.  Action required

There is no action required for participation.

3.  Details of the initiative

Please refer to Attachment 1 for the product details.

A.    Contract specifications and product parameters

In general, contract specifications for the new equity options on US shares admitted to Xetra trading are in line with the existing contracts with the Eurex group ID DE11, also in terms of trading hours and trading calendar, last trading day, settlement and determination of the daily and final settlement prices.

For the detailed Contract Specifications, please see Attachment 2.

The quoting obligations for new equity options can be found in the attached Product Specific Supplement. As of start of trading, they will also be available on the Eurex website www.eurex.com under the link:

Trade > Market-Making and Liquidity provisioning

Please be advised that new quoting obligations will be set as of 1 February 2021, aligned with the introduction of new Liquidity Provision Framework.

The full version of the updated Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland will be published on the Eurex website as of start of trading under:

Trade > Rules & Regs > Eurex Rules and Regulations > Contract Specifications

B.    Admission to the Eurex T7 Entry Services (TES)

The new products will be admitted to the Eurex T7 Entry Services (TES). You can find the minimum block trade sizes on product level in the attached Contract Specifications in Attachment 2. 

An overview of the Eurex T7 Entry Services available for the products as well as detailed information on single product basis with regard to availability, possibility of utilisation and minimum entry size for the various Eurex T7 Entry Services is available on the Eurex website under the link:

Trade > Data > Trading files > T7 Entry Service parameters

C.    Risk parameters

As of start of trading, risk parameters of the new products will be published on the Eurex website under the link: 

Trade > Data > Clearing files > Risk parameters and initial margins

and on the Eurex Clearing website www.eurex.com/ec-en/ under the following path:

Clear > Services > Risk parameters

You will also find an updated list with details regarding Prisma-eligible Eurex products under this path. 

D.    Excessive System Usage Fee and Order to Trade Ratio

The Excessive System Usage Fee and the Order to Trade Ratio for the new products are determined in line with the existing equity options (OSTK). For detailed information, please refer to the Eurex website under the following links:  

Trade > Markets > Equity > Equity Options
Trade > Rules & Regs > Excessive System Usage Fee
Trade > Rules & Regs > Order to Trade Ratio

E.    Mistrade ranges and position limits

Mistrade ranges and position limits for the new products will be published as of start of trading on the Eurex website under the following links:

Trade > Markets > Equity > Equity Options
Trade > Markets > Product Overview > Contract Specs

F.    Transaction limits

The same values apply as for existing products with the relevant Eurex group ID. For details, please refer to the Eurex website under the link:

Trade > Rules & Regs > Excessive System Usage Fee

G.    Transaction fees

The same transaction fees apply for the new products as for the corresponding existing products.

H.    Vendor codes

At start of trading, vendor codes for the new products will be published on the Eurex website under the link:

Trade > Markets > Product Overview > Vendor Codes

I.      Liquidity Provisioning

Please refer to Attachment 1 for the Liquidity Provisioning.


Attachments: 

  1. Details regarding the new products, Liquidity Provisioning
  2. Updated sections of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland
  3. „Product Specific Supplement for Equity Options and Selected Equity Index Options"


Further information

Recipients:

All Trading Participants of Eurex Deutschland 

Target groups:

Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination

Contact:

client.services@eurex.com

Web:

www.eurex.com

Authorised by:

Randolf Roth


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