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09 Aug 2022

Eurex

Passive Liquidity Protection: Deferral Time for OESX

Eurex Circular 076/22 Passive Liquidity Protection: Deferral Time for OESX

1.  Introduction

With this circular, Eurex would like to provide you with additional information on the planned rollout of the Passive Liquidity Protection (PLP) for the EURO STOXX 50® index option family, which is scheduled for 10 October 2022.  

The PLP deferral time will be set to 1 millisecond for the EURO STOXX 50® index option products for production and simulation.

2.  Required action

There is no particular action required. Participants interested in testing the PLP functionality for the new supported products should use the Eurex simulation environment for testing, which will be enabled on 7 September 2022. Already today, the Eurex simulation environment allows testing PLP on several products (e.g. ODAX and OTUK).

3.  Details of the initiative

On 10 October 2022, PLP will be activated for the following products with a deferral time of 1 millisecond:

  • EURO STOXX 50® Index Options (OESX) 
  • EURO STOXX 50® Weekly Contracts (OES1 to OES4) 
  • EURO STOXX 50® Month-End Index Options (OMSX).

Eurex will constantly monitor the trading activity changes and order book dynamics in order to evaluate the appropriateness of the deferral times and may change them after transparent communication in case empirical results provide evidence that a change is required. 

For more information on the PLP functionality, please see the dedicated PLP page on the Eurex website www.eurex.com with in-depth insights into how and why Eurex has pioneered the provision of a functional solution to level the playing field for Trading Participants, as well as additional highlights on the effects the introduction of PLP had on the trading characteristics and liquidity picture of DAX® index options. 

For further information please see: Trade > Eurex PLP

Attachment:

  • Updated sections of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland

Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target group:

Front Office/Trading

Contact:

client.services@eurex.com

Related circular:

Eurex circular 050/22

Web:

Support > Initiatives & Releases > Archive > T7 Release 8.0
Trade > Eurex PLP

Authorized by:

Randolf Roth


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