Eurex EnLight: EnLight Building Block (EBB) amendments

1.  Introduction

We would like to amend the EnLight Building Block (EBB) fulfilment criteria and add further details for existing measurement in order to support more competitive pricing and better liquidity provisioning on the platform through the EnLight Building Block (EBB). 

The EnLight Building Block (EBB) is a set of requirements for responders on the platform, which, upon fulfilment, make responders on Eurex EnLight eligible to receive Liquidity Provider (LP) rebates on their transaction fees.

Production start: 1 April 2021

2.  Action required

Liquidity Providers on Eurex EnLight are required to adapt their quotation behaviour.

3.  Details of the initiative

Our goal is to create an environment in which Liquidity Providers on Eurex EnLight are able to offer their best competitive pricing and further support liquidity on the platform. For this purpose, we will amend the EnLight Building Block (EBB) requirements by incorporating the “Working” response into our LP measurement for the purpose of the EnLight Building Block (EBB). 

Currently, when an Eurex EnLight RFQ is sent to responders on Eurex EnLight, they have several options: 

• They could reply with a quote “Submit Quote”,
• They could indicate they are working on pricing the deal by clicking the status “Working”,
• They could decline the Eurex EnLight RFQ “Decline”.

In the future, the "Working" response will be incorporated into our LP measurement for the Eurex EnLight RFQ response time of the EnLight Building Block (EBB). The updated requirement for fulfilment of the EnLight Building Block (EBB) with respect to the Eurex EnLight RFQ response time will be that once an Eurex EnLight RFQ is submitted to a Liquidity Provider, the Liquidity Provider has 60 seconds to, either:

• Provide a quote; or:
• Indicate that they are on status “Working“; whereby they would then have additional 180 seconds in which they have to provide a quote in order to fulfil the requirements.

Attachment:

• General Supplement to the Liquidity Provider Agreement (LPA)

Further information