29 Nov 2022

Eurex

Amendments to the Rulebooks of Eurex Deutschland

Eurex Circular 114/22 Amendments to the Rulebooks of Eurex Deutschland

1.    Introduction

Eurex Deutschland conducted a comprehensive review of its Rules and Regulations to standardize the terms and the language used throughout the documents and to update specific provisions. In this context, the following rulebooks were amended:

  • Exchange Rules of Eurex Deutschland (“Exchange Rules”),
  • Conditions for Trading at Eurex Deutschland (“Trading Conditions”),
  • Admission Regulations for Exchange Traders at Eurex Deutschland (“Admission Regulation”),
  • Fee Regulations for Eurex Deutschland (“Fee Regulation”).

The Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland („Contract Specifications”) will be reviewed at a later point in time. With this circular, only the Annex to § 17b Exchange Rules will be transferred to the Contract Specifications.

This circular contains all relevant information on the implementation of the abovementioned measure and the updated sections of the relevant Rules and Regulations of Eurex Deutschland.

Effective date of the amendments: 1 December 2022

2.    Required action

There is no action required for the Trading Participants.

3.    Details

A.    Standardization of terms and the language, § 2 Exchange Rules (new version)

To ensure a consistent use of definitions within the rulebooks, a central register of all definitions used across the rulebooks of Eurex Deutschland („Definitions Catalogue“) will be included in Annex I of the Exchange Rules (new version). 

The definitions which were formerly introduced at different passages in the rulebooks will be transferred to Annex I. It will be clarified in all rulebooks that the definitions in Annex I of the Exchange Rules will be applicable for the respective rulebook. 

B.    Pre-Trade Checks, § 10 Exchange Rules (new version)

§ 10 Exchange Rules will be amended as follows:

  • The considered messages for the Maximum Message Limits will be further specified – besides order messages, those also include technical messages which can be sent by a Trading Participant.
  • The rule regarding the order and quote limits for the order book will be updated. This functionality in the trading system of Eurex Deutschland prohibits that admitted companies maintain own limits but foresees a uniform limit for all Trading Participants. This reflects the current available functionality in the trading system.
  • Concerning the maximum number of contracts that an exchange trader can enter per order or per quote, a differentiation of derivative groups and derivatives will be introduced, which is being allowed by this functionality.

C.    Order-to-Trade Ratio, § 16 Exchange Rules (new version)

The current Annex I to § 17b Exchange Rules entails detailed standards in the parametrization of the Order-to-Trade Ratio on a contract basis, which are incorporated in the Contract Specifications, as the latter is the more relevant rulebook and closer to the subject.

D.    Conditions within the Clearing Process and Limitation of Orders and Quotes, §§ 27 to 29 and 38 Exchange Rules (new version)

The current §§ 28 to 30 and §§ 41 to 42 Exchange Rules will be entirely revised and newly structured.

The current §§ 28 to 30 Exchange Rules will be combined in the new § 27 Exchange Rules, which will exclusively define the conditions within the clearing process, which a clearing participant can impose on its trading participant, and which will lead to a suspension from trading in case of non-compliance of the trading participant. 

The current §§ 41 to 42 Exchange Rules will be consolidated as well. The differentiation between „Pre-Trade Limits“ and „Other Conditions“ will be omitted, instead, § 38 Exchange Rules (new version) will conclusively consolidate the different legal consequences in case of non-compliance with the conditions – those will be differentiated after the functionalities defined in the new § 27 Exchange Rules including the relevant consequences and obligations for clearing participants and trading participants.

E.    Cross Trades and Pre-Arranged Trades, Number 2.6 Trading Conditions (new version)

Sentence 2 in Number 2.6 (2) Trading Conditions of the new version will clarify that the purchasing party of the trade needs to ensure that a corresponding Trade Request has been submitted before the order or quote inducing the Cross or Pre-Arranged Trade is being entered into the order book.

The harmonization of entry times for orders and quotes for Money Market and Fixed Income Futures and Options Contracts with all other Futures and Options Contracts to 61 seconds aims at an optimization of the surveillance practice at the Trading Surveillance Office (TSO) and further enables the market to participate in bespoke trades, especially in less liquid products.

F.    Orders for Auctions, Number 3.9 Trading Conditions (new version)

Eurex Deutschland will introduce new order types upon request by trading participants. The new order types exclusively enable a participation in opening and closing auctions. Analogously to existing order types, their functionality and limitation possibilities will be specified in Number 3.9.

G.    Admission Regulation (new version)

Besides editorial amendments the Amendment Ordinance to the Admission Regulation reflects amendments with a view to the possibility to file for admission electronically, provision of evidence and communication.

Furthermore, the subject matter „European and national exchange law-related provisions” was added to the scope of the Exchange Trader Examinations as well as a provision dealing with the professional competence of the members of the Examination Board.

H.    Fees for Participation in the Exchange Trader Examination, Section 9 Fee Regulation

In case of a withdrawal from the Exchange Trader Examination within three weeks before start of the examination, the full fee will be levied.

Attachments:

Updated sections of the

  • 1 – Exchange Rules of Eurex Deutschland
  • 2 – Conditions for Trading at Eurex Deutschland
  • 3 – Admission Regulations for Exchange Traders at Eurex Deutschland
  • 4 – Fee Regulations for Eurex Deutschland
  • 5a/5b – Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland


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:

client.services@eurex.com

Web:

www.eurex.com

Authorized by:

Michael Peters


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