20 Jul 2021

Eurex

Passive Liquidity Protection: Deferral times and launch dates for OINX

Eurex Circular 070/21 Passive Liquidity Protection: Deferral times and launch dates for OINX


1.  Introduction

With this circular, we would like to provide you with further information about the planned rollout of the Passive Liquidity Protection (PLP) for Eurex index options, which is scheduled for September 2021. 

Production start OINX excluding OKS2, OESX and weekly contracts (OES1 to OES4) as well as OMSX: 6 September 2021

Simulation start OINX excluding OKS2, OESX and weekly contracts (OES1 to OES4) as well as OMSX: 10 August 2021

In addition, as of 6 September 2021, the current deferral time for ODAX products in production (1.5 milliseconds) will be shortened to 1 millisecond due to technological improvements in the Eurex T7 infrastructure, especially in gateway and matching engine.

Learn now more about T7 Release 8.0 on our dedicated initiative page under the following link: Support > Initiatives & Releases > Archive > T7 Release 8.0. System documentation, circulars, timeline and much more information will be available there for you.

2.  Required action

There is no particular action required. Participants interested in testing the PLP functionality for the new supported products should use the Eurex simulation environment for testing, which will be activated beforehand. Already today, the Eurex simulation environment allows testing PLP on several products (e.g. ODAX and OTUK).

3.  Details of the initiative

In June 2019, the PLP functionality was initially activated for the German and French equity options. On 24 August 2020, the first index option, i.e. the DAX® index option (ODAX), including weekly contracts, was activated, followed by all equity options. On 31 May 2021, the FTSE 100 index option (OTUK) also followed. 

On 6 September 2021, PLP will be activated for the following products with a deferral time of 1 millisecond:

  • All index options, excluding
  • Eurex Daily Futures on KOSPI 200 options (OKS2), 
  • EURO STOXX 50® index options (OESX) 
  • EURO STOXX 50® weekly contracts (OES1 to OES4) and 
  • EURO STOXX 50® month-end index options (OMSX).

Also, the deferral time of the ODAX products will be shortened to 1 millisecond (currently 1.5 milliseconds).

Eurex will constantly monitor the trading activity changes and order book dynamics in order to evaluate the appropriateness of the deferral times and may change them after transparent communication in case empirical results provide evidence that a change is required.

A dedicated communication on launch dates and deferral times for the introduction of PLP for OESX and weekly contracts (OES1 to OES4) as well as OMSX will follow at a later point in time.  

For more information on the PLP functionality, Eurex updated the dedicated PLP page on the Eurex website with in-depth insights into how and why Eurex has pioneered the provision of a functional solution to level the playing field for Trading Participants, as well as additional highlights on the effects the introduction of PLP had on the trading characteristics and liquidity picture of DAX index options. 

For further information please see:

Trade > Eurex PLP

Attachment: 

  • Updated sections of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland as of 6 September 2021 

Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target groups:

Front Office/Trading

Contact:

client.services@eurex.com

Related circular:

Eurex circular 045/21

Web:

Support > Initiatives & Releases > Archive > T7 Release 8.0;
Trade > Eurex PLP

Authorized by:

Randolf Roth


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