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
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