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09 Mar 2021

Eurex

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

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

Dear Eurex Participant,

With this Newsflash, we would like to remind you again about an envisaged change to the Exchange Rules of Eurex Deutschland, which requires Exchange Participants to mark specific algorithmically generated orders and quotes with the Eurex Self-Match Prevention flag (T7 SMP ID - tag 28744 "MatchInstCrossID").

It is 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 trading in Trading Capacity “proprietary” and “market making” via a computer algorithm, where the latter is responsible for both the investment decision and the execution decision. Please note that in case those aforementioned orders and quotes are not flagged with T7 SMP ID, they will not be rejected by the Eurex T7 trading system. Thus, the responsibility for the appropriate flagging lies with the Exchange Participants.

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 optional.

More detailed information on the Eurex SMP functionality can be found under the following link:

Trade > Support > Initiatives > Projects > Self-Match Prevention – Selected Mandatory Usage

as well as under the following links:

Trade > Support > Initiatives > Archive > T7 Releases > T7 Release 8.1 > System documentation > Overview and Functionality > Functional Reference (Section 7.6)

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

If you have any further questions or comments please do not hesitate to contact your Key Account Manager or send an e-mail to client.services@eurex.com.

Kind regards

Your Client Services Team
 

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Recipients:

All Trading Participants of Eurex Deutschland and vendors

Target groups:

Front Office/Trading, Middle + Back Office, IT/System Administration, Auditing/Security Coordination

Contact:

client.services@eurex.com

Web:

www.eurex.com


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