Find
28 Oct 2020

Eurex

Eurex Exchange Readiness Newsflash | Self-Match Prevention (SMP) changes

Eurex Exchange Readiness Newsflash | Self-Match Prevention (SMP) changes

Dear Eurex Participant,

With this Newsflash, we would like to inform you about an envisaged change to the Exchange Rules of Eurex Deutschland (Exchange Rules), which requires Exchange Participants to mark specific algorithmically generated orders and quotes with a Self-Match Prevention flag (SMP).

It will be clarified that algorithmically generated orders and quotes, for which the investment decision according to Article 8 of Commission Delegated Regulation (EU) 2017/590 and the execution decision according to Article 9 of Commission Delegated Regulation (EU) 2017/590 have both been determined by the same algorithmic strategy, are required to be entered with the additional execution restriction SMP and the same SMP identification during continuous trading with the use of the Eurex SMP functionality.

This flagging obligation only applies for proprietary trading via a computer algorithm, where the latter is responsible for both the investment decision and the execution decision.

It is expected that the new rules and the associated flagging obligation will become effective for Exchange Participants as of 1 April 2021.

In all other application scenarios, the usage of the SMP functionality remains voluntary. 

Please note that the corresponding changes to the Exchange Rules are subject to the approval by the Exchange Council of Eurex Deutschland in its upcoming meeting in November 2020. Exchange Participants will be informed with an Eurex Circular on the exact rule change after the official decision has been taken.

More detailed information on the Eurex SMP functionality can be found on the Eurex website: www.eurex.com under the following links:

Tech > T7 Trading architecture > Release 8.1 > Overview and Functionality > Functional Reference, Section 7.6

Rules & Regs > Eurex Rules & Regulations > Trading conditions, Section 3.7


If you have any questions or comments, please do not hesitate to contact us at: client.services@eurex.com.

Kind regards

Your Client Services Team
 

How to keep up with news? Get the latest Eurex updates fast and easy using: Eurex App, LinkedIn, YouTube or visit our website

 

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Contact:

client.services@eurex.com

Web:

www.eurex.com


Market Status

XEUR

The market status window is an indication regarding the current technical availability of the trading system. It indicates whether news board messages regarding current technical issues of the trading system have been published or will be published shortly.

Please find further information about incident handling in the Emergency Playbook published on the Eurex webpage under Support --> Emergencies and safeguards. Detailed information about incident communication, market re-opening procedures and best practices for order and trade reconciliation can be found in the chapters 4.2, 4.3 and 4.5, respectively. Concrete information for the respective incident will be published during the incident via newsboard message. 

We strongly recommend not to take any decisions based on the indications in the market status window but to always check the production news board for comprehensive information on an incident.

An instant update of the Market Status requires an enabled up-to date Java™ version within the browser.