FX derivatives: Migration of FX derivatives to the standard T7 trading system

1.  Introduction

To simplify access and to lower the entry barrier to its FX products, Eurex has decided to transfer its FX derivatives from the T7/FX trading system to its standard T7 trading system. 

In order to reflect this migration, the Management Board of Eurex Deutschland and the Executive Board of Eurex Frankfurt AG took the following decision with effect from 15 May 2021:

• To amend the contract specifications for Futures Contracts and Options Contracts at Eurex Deutschland in accordance with Attachment 2. 

In addition, the Executive Board of Eurex Frankfurt AG took the following decisions:

• To amend the Liquidity Provider Scheme for the FX Futures and for the Options on FX Futures, pursuant to Attachments 3 and 4, with effect from 1 May 2021 
• To amend the Price List to the Connection Agreement, Provider Connection Agreement and STPIP and QTPIP Connection Agreement, pursuant to Attachment 5, with effect from 17 May 2021.

This circular contains information on the migration of the FX Derivatives and the updated sections of the relevant Rules and Regulations of Eurex Deutschland.

Prior to the production start, Eurex will offer a dedicated simulation period to test the product changes and adjusted tools within a dedicated simulation environment.

Testing in the cloud simulation will be possible from 1 April 2021 onwards.

Simulation start:    1 April 2021
Production start: 17 May 2021

All details regarding the T7/FX Migration project can be found on the dedicated initiative page under:

Support > Initiatives & Releases > Projects > T7/FX Migration

2.  Required action/Requirements for participation

Customers currently trading Eurex FX Products on T7/FX need to adjust their setup (technical sessions, users, TSLs) due to a changed trading environment. Please note: As this initiative does not affect the clearing layer on C7, there is no impact on existing positions in FX products.

3.  Details of the initiative

Trading of FX Futures (Classic FX Futures and Rolling Spot Futures) and Options on FX Futures on the T7/FX platform will be discontinued on 14 May 2021, after the close of trading. All product assignments on T7/FX will be removed latest on 14 May 2021. All open orders will be deleted after close of trading on that business day, Eurex will not proactively inform participants about deleted orders. However, this information is available upon request.

FX Futures and Options on FX Futures will be available for trading on the T7 platform as of 17 May 2021. Please note that Product ISINs, Instrument ISINs and the Product IDs remain unchanged, but due to the migration, new Instrument IDs will be assigned. After the migration to T7, due to the expiration cycle, newly generated instruments will be available for trading on the next business day, previously on the second business day.

3.1  Functional impact

A. Impacts on product characteristics

a. Trading hours

The trading hours for FX Futures (Classic FX Futures and Rolling Spot Futures) and Options on FX Futures will be amended effective 15 May 2021. The planned trading hours are shown in the table below. 

On an expiration day of a maturing Classic FX Future or Option on FX Future contract, Continuous Trading and Block Trade entry ceases at 15:00 CET for the expiring front month contract.

Effective as of 15 May 2021, the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland AG will be amended in accordance with Attachment 2.

The full version of the updated Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland will be published on the Eurex website as of start of trading under:

Rules & Regs > Eurex Rules and Regulations > Contract Specifications

b. Liquidity Provider Schemes

The time zones of the Product Specific Supplements for “FX Futures and Rolling Spot Futures” and for “Options on FX Futures” (“PSS”) will be amended accordingly to the new trading hours. Both amended PSS will become effective from 1 May 2021, as shown in the Attachments 3 and 4 to this circular. Liquidity Providers should adapt their quotation behaviour accordingly. 

The amendments to the PSS will be deemed to have been approved, if Liquidity Providers do not lodge objections within fifteen (15) business days of notification of the amendment according to Clause 4 (2) of the Liqudity Provider Agreement. 

c. Fees for services under the Connection Agreement

• The Price List to the Connection Agreement, Provider Connection Agreement and STPIP and QTPIP Connection Agreement will be amended, pursuant to Attachment 5 with effect as of 17 May 2021. 

Due to the transfer of the FX products from the T7/FX trading system to the standard T7 trading system, the dedicated Eurex T7/FX GUI via Internet connection as well as the T7/FX sessions will be removed from the Eurex Frankfurt AG Price List with effective date 17 May 2021.

The fee holiday (announced in Eurex circular 087/16) for the sessions for the T7/FX platform will be terminated effective 17 May 2021.

• Fee waiver for the T7 trading system:

All Trading Participants, who fulfil the basis building block requirements for the product FCEU (EUR/USD Future) or EUCO (Options on EURUSD Future) according to the respective PSS “Foreign Exchange 01 - FX Futures and FX Rolling Spot Futures” and “Foreign Exchange 02 - Options on FX Futures” - as amended from time to time - will not be charged for their first six Full High-Frequency Sessions for the month in which the basis building block requirements are fulfilled.
This fee waiver is valid until further notice. Eurex Frankfurt AG shall have the right to terminate or adjust this incentive at any time with a one-month notice.

d. Activation of Eurex EnLight

With the migration of the FX derivatives to T7 standard, Eurex will activate EnLight shortly after the migration. Details and timelines will be announced in a separate Eurex circular.

B. Maintenance of users

With the decommissioning of T7/FX, Eurex will not transfer any existing users to the standard T7 environment. Participants have the possibility to maintain their users well in advance, e.g. already now, clients can set up users. Details can be found in the "Participant and User Maintenance Manual”, available for download under the following link:

Support > Initiatives & Releases > T7 Releases > T7 Release 9.0 > System Documentation > Eurex GUI Solutions

C. User TSLs

The maintenance of the user TSLs and user entitlement is possible after the complete product setup, which means that the related activities will be done after the change of the TradEnvironment flag in Eurex Classic for the Eurex FX Products from “FX” to “STD”. The Participants will be informed to entitle users for specific user roles for required product assignment groups and maintain the user TSLs in the Eurex Admin GUI for T7 on Sunday evening prior to start of trading on Monday, 17 May 2021 in Eurex FX. In this context, e.g. for staff availability, it is advisable to keep in mind that trading starts at 01:00 CET.

As an alternative, it will be possible to maintain the “DefaultTSL” for the FX Product Groups in advance. As currently each FX Product Group contains only one product and this setup shall not be changed until the move of Eurex FX to T7, the maintenance of the “Default” for the FX Product Groups is an alternative to the user TSLs.

D. User TES eligibility

The TES type eligibility applies for one user to all products; i.e. the setup is in place for the users already known to T7-STD. In case new users will be added during the preparation period, the Trading Participants will be required to verify the User TES Type eligibility as well. 

E. Reporting

The current T7/FX reports with environment IDs “70” (production) and “75” (simulation) will be decommissioned. The FX products will be fully integrated into the standard T7 Reports with the environment IDs: “90” for the production environment and “95” for the simulation environment.

For details about the reports, please see the “Eurex XML Reports – Report Reference Manual”, available for download under this link:

Support > Initiatives & Releases > T7 Releases > T7 Release 9.0 > System Documentation > Reports

There are certain reports which contain month-to-date information. These reports will have a break after the FX derivatives will be migrated.

After the migration of FX derivatives, the information in the existing reports will start after the first trading day. T7/FX reports will not be further produced.

Where it is necessary, Eurex will manually merge these reports for May 2021. We recommend customers to approach their respective Key Account Manager if support is needed.

With the migration of the FX derivatives towards T7, TVTIC for these products will start with “1”.

Please note: The T7 trading system will be started on 15 May 2021, meaning the start-of-day report for 17 May 2021 will be created twice.

3.2  Technical impact

A. Partitions

The FX derivatives will be located on the existing Partition 1 in the simulation environment and on the new Partition 11 in the production environment. The new IP addresses for the partition specific gateway on Partition 11 are as follows: 

• Partition 11 (Active):     193.29.91.184
• Partition 11 (Backup):   193.29.91.154

The appropriate update of the Network Access Guide in the near future will be announced via Implementation News.

B. Request of new ETI Sessions

As the FX products will be located on a separate partition within the standard T7 environment, users may need to order additional ETI sessions. These sessions can be requested in the Member Section.

The session pricing model remains unchanged as outlined in the Price List to the Connection Agreement of Eurex Frankfurt AG.

Existing T7/FX ETI Sessions (beginning with 75/70) cannot be used in the future. Participants wishing to use HF sessions in Production must order an additional session for the new Partition 11. New sessions which are intended to be used for the trading of FX Products can be ordered at any time and will be available following the next rollover in the respective environment. After close of trading on 14 May 2021 and before 17 May 2021, Eurex will cancel all remaining customer sessions for the T7/FX instance.

C. FIX sessions

The FX products can also be traded via the FIX Gateways.

D. Market data

a. EMDS

The EMDS market data for FX products will be disseminated under the same EMDS multicast addresses as for the other Eurex products.

b. EMDI

Please refer to Attachment 1 for an overview of the multicast addresses for the EMDI Interface.

c. EOBI

Please refer to Attachment 1 for an overview of the multicast addresses for the EOBI Interface.

Please note: In the transition period from T7/FX to the T7 simulation environment, a temporary multicast address will be used for the FCUR and OCUR products. Once the migration has been completed, the existing multicast address which are currently used in the T7/FX simulation environment will again be restored. The production multicast addresses are not affected.

d. Reference data

As the T7 standard system will be re-started on Saturday, 15 May 2021, for internal maintenance purposes, reference data for the business day 17 May 2021 will also be generated. As the reference data provided on 15 May 2021 via RDI and RDF may potentially contain some changes, participants are required to use the initial reference data which will be provided during the evening of Sunday, 16 May 2021, following the system startup for the business day 17 May 2021.

Attachments:

• 1 – Overview of the multicast addresses for the EMDI and EOBI interfaces
• 2 – Updated sections of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland
• 3 – Updated Product Specific Supplement (PSS) for FX Futures
• 4 – Updated Product Specific Supplement (PSS) for Options on FX Futures
• 5 – Updated sections of the Price List to the Connection Agreement, Provider Connection Agreement and STPIP and QTPIP Connection Agreement.

Further information