30 Apr 2021

Eurex

MSCI index derivatives: Change to the Liquidity Provider schemes

Eurex Circular 041/21 MSCI index derivatives: Change to the Liquidity Provider schemes


1.  Introduction

The Executive Board of Eurex Frankfurt AG took the following decisions with effect from 1 June 2021:

  • Introduction of revenue sharing for calendar spread quotation in selected MSCI Futures
  • Change of the minimum quote size and spread requirements in selected products
  • Transfer of the MSCI ESG screened Futures from a separate Liquidity Provider (LP) scheme into the standard LP scheme for MSCI Futures. The separate scheme for MSCI ESG screened Futures will therefore be terminated.

This circular contains all information on the amended Liquidity Provider schemes.

To help Trading Participants to keep up with all Eurex updates, we have made all support information available on the respective Eurex Support pages and on the go via the personalized Eurex App.

Production start: 1 June 2021

2.  Required action

The quote machines need to be adjusted in order to reflect the change in the Liquidity Provider parameters.

3.  Details of the initiative

Up until now, quotation of calendar spreads (available only in selected MSCI Futures during the quarterly expiry months) has qualified for Market Maker rebates, but not for revenue sharing. This component will now be added, as well as additional quote requirements for calendar spreads (“LP2”).

The transfer of the five MSCI ESG screened Futures from a separate Liquidity Provider scheme to the standard scheme offered for MSCI Futures reduces complexity, but also streamlines the quotation requirements and allows to participate in additional revenue sharing opportunities when quoting the MSCI ESG screened Futures.

Please refer to the amended Product Specific Supplement (PSS) “Equity Index 01 - Futures on MSCI Indices” and “Equity Index 02 - Options on MSCI Indices” which are attached to this circular, and which are also available on the Eurex website www.eurex.com under the following link:

Trade > Market-Making and Liquidity provisioning

Attachments:

  1. Product Specific Supplement “Equity Index 01 - Futures on MSCI Indices”, valid as of 1 June 2021
  2. Product Specific Supplement “Equity Index 02 - Options on MSCI Indices”, valid as of 1 June 2021

Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target groups:

Front Office/Trading, IT/System Administration

Contact:

client.services@eurex.com

Web:

Trade > Market-Making and Liquidity Provisioning

Authorized by:

Randolf Roth


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