05 Jan 2022

Eurex

Equity Derivatives: Introduction of Equity Options, Single Stock Futures and Single Stock Dividend Futures, cancellation of admission to trading for Single Stock Futures and Equity Options

Eurex Circular 001/22 Equity Derivatives: Introduction of Equity Options, Single Stock Futures and Single Stock Dividend Futures, cancellation of admission to trading for Single Stock Futures and Equity Options

1.  Introduction

The Management Board of Eurex Deutschland took the following decisions with effect from 
24 January 2022:

  • Introduction of two Single Stock Futures pursuant to Annex A to the Contract Specifications (Attachment 2),
  • Introduction of one Equity Option pursuant to Annex B to the Contract Specifications (Attachment 2),
  • Introduction of one Single Stock Dividend Future pursuant to Annex D to the Contract Specifications (Attachment 2),
  • Cancellation of admission to trading or six Single Stock Futures and two Equity Options pursuant to Annex A to the Contract Specifications (Attachment 2),
  • Extension of maturity for products LOGN and LOGE from 24 to 60 months, pursuant to Annex B to the Contract Specifications (Attachment 2)
  • Inclusion of the new Single Stock Dividend Futures in the existing Liquidity Provider (LP) scheme effective from 1 February 2022 (Attachment 3).

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: 24 January 2022

2.  Required action

There is no action required for participation.

3.  Details 

A. Product overview

Please refer to Attachment 1 for product details.

B. Contract specifications and product parameters

In general, contract specifications for the new Equity Derivatives are in line with the existing contracts with the relevant Eurex group ID, 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 for Futures Contracts and Options Contracts at Eurex Deutschland (Contract Specifications), please see Attachment 2.

The full version of the updated Contract Specifications will be published on the Eurex website www.eurex.com as of start of trading under:

Rules & Regs > Eurex Rules & Regulations > Contract Specifications

C. 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.

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:

Data > Trading files > T7 Entry Service parameters

D. Risk parameters

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

Data > Clearing files > Risk parameters and initial margins

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

Services > Risk parameters

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

E. 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 products (Equity Options and Single Stock Dividend Futures). For detailed information, please refer to the Eurex website under the following links:

Markets > Product Overview

Rules & Regs > Excessive System Usage Fee

Rules & Regs > Order to Trade Ratio

F. 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 link:

Markets > Product Overview

G. 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:

Rules & Regs > Excessive System Usage Fee 

H. Transaction fees

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

I. Vendor codes

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

Markets > Product Overview > Vendor Codes

J. Liquidity Provisioning

Please refer to Attachment 1 for the Liquidity Provisioning. Detailed information can be found on the Eurex website under the following link:

Trade > Market-Making and Liquidity provisioning > Product Specific Supplements to the LPA

Attachments:

  • 1 - Product overview, Liquidity Provisioning
  • 2 - Updated sections of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland
  • 3 - Product Specific Supplement “Equity 03” (English only)

Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target groups:

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

Contact:

Your Key Account Manager or client.services@eurex.com

Web:

www.eurex.com

Authorized by:

Randolf Roth


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