With Passive Liquidity Protection (PLP), Eurex aims to further improve the liquidity picture and price discovery process of the order book where price discovery is significantly driven by underlying or exogenous markets. In such specific products, trading participants providing passive liquidity to the order book need to spend a high amount of resources to prevent adverse hits in case of short-term underlying movements. As a result, they may even refrain from quoting in the order book and only provide liquidity off-book. By differentiating latency in selected option markets, we ensure that trading participants can strengthen their focus on serving the needs of the end-clients and grow the market as a whole.
On this site, Eurex will provide information updates in order to support adequate planning and to ensure a successful introduction for PLP. For further information about the PLP market model, please refer to this website: www.eurexchange.com > Trading > Market-models > Eurex PLP.
Software implementation: 3 December 2018
Production start: 27 May 2019 for all FX products listed at T7-FX
Production start: 3 June 2019 for German and French equity Options
With the activation of PLP, all aggressive orders, (orders that are executable upon arrival at the matching engine), will be delayed by a product segment-specific deferral time before they can interact with the order book. The pilot rollout will face the following characteristics:
| Go-Live | Product Scope | Deferral Time |
| 3 June 2019 | All German OSTK incl. weeklies | 1 ms |
| 3 June 2019 | All French OSTK incl. weeklies | 3 ms |
Key benefits
Technical Impacts / Participation requirements
PLP affects ETI interface, FIX interface, GUIs, and reports (introduced with T7 Release 7.0). For detailed changes, please refer to the Interface Manuals and to the online help in the GUIs.
Corresponding Newsflashes
Corresponding Circulars
System documentation: T7 Release 7.0
Passive Liquidity Protection will also be introduced for FX Products. For further details please have a look at the corresponding Eurex Circular 042/19. Eurex will not introduce any further technical changes.
If you have any questions or require further information, please contact us at client.services@eurexchange.com.
