19 Sep 2023

Eurex

Equity derivatives: A. Introduction of Single Stock Futures, Single Stock Dividend Futures and equity options due to the spin-off of Sandoz Group AG from Novartis AG; B. Name change of underlyings of Single Stock Futures and equity options

Eurex Circular 075/23 Equity derivatives: A. Introduction of Single Stock Futures, Single Stock Dividend Futures and equity options due to the spin-off of Sandoz Group AG from Novartis AG; B. Name change of underlyings of Single Stock Futures and equity options

1.  Introduction

Due to the spin-off of Sandoz Group AG from Novartis AG, the Management Board of Eurex Deutschland took the following decisions with effect from 5 October 2023:

  • Introduction of one Single Stock Future, one Single Stock Dividend Future and two equity options pursuant to Annexes A, B and D to the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland (hereafter referred to as: Contract Specifications) (Attachment 2),
  • Name change of underlyings of Single Stock Futures and equity options pursuant to Annexes A, B and D to the Contract Specifications (Attachment 2).

To implement the above decisions, the Contract Specifications will be amended with effect from 5 October 2023.

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: 5 October 2023

2.  Required action

There is no action required for participation.

3.  Details 

A. Product overview

Please refer to Attachment 1 for the products.

B. Contract specifications and product parameters

In general, contract specifications for the new Single Stock Futures and Single Stock Dividend Futures 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.

In addition, the names of the underlyings of some Single Stock Futures and equity options have been changed, as can be seen from the aforementioned Annexes to the Contract Specifications.

For the updated sections of the 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 > 03. 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 in Attachment 2. 

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 utilization 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 (Single Stock Futures, 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


Attachments:

  • 1 – Product overview
  • 2 – Updated Annexes to the 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:

Derivatives Trading Operations, tel. +49-69-211-1 12 10, eurextrading@eurex.com

Web:

www.eurex.com 

Authorized by:

Randolf Roth


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