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26 Mar 2021

Eurex

Equity Index Derivatives: Additional information on the compression service for listed derivatives

Eurex Circular 029/21 Equity Index Derivatives: Additional information on the compression service for listed derivatives

1.  Introduction

The Exchange Council of Eurex Deutschland took the decision to amend the Conditions for Trading at Eurex Deutschland (Trading Conditions) to enable third party compression service providers to offer compression services for listed derivatives at Eurex Deutschland, as outlined in the attachment, with effect as of 29 March 2021

In addition, the Executive Board of Eurex Frankfurt AG decided to offer a fee holiday for portfolio compressors according to the Price List to Connection Agreement, Provider Connection Agreement and STPIP and QTPIP Connection Agreement of Eurex Frankfurt AG from 29 March until 30 June 2021.  

Production start: 29 March 2021

All compression service-related support information will be made available on our dedicated project initiatives page under the  following link:

Support > Initiatives & Releases > Project Readiness > Compression

2.  Required action

There is no required action for the participants. 

3.  Details of the initiative

A.  Service overview

Amendments related to the introduction of the compression service infrastructure are made in the introduction to part 4, and in 4.2 (1), 4.3 (8), 4.6 (1), 4.7, 4.8 and 4.10 of the Trading Conditions. For details, please see the attached 23rd Amendment Ordinance to the Conditions for Trading at Eurex Deutschland. 

The main amendments are:

  • Eurex Deutschland may provide Exchange Participants with a new entry service for portfolio compression trades via the Off-book Trading facilities.
  • Exchange Participants and Third Party Information Providers (TPIP) who are admitted by the Management Board of Eurex Deutschland as portfolio compressor provider may enter portfolio compression trades on behalf of other Exchange Participants. Thus, Exchange Participants who want to use compression services need to enter into an agreement with an authorised and admitted portfolio compressor to enter compression trades on their behalf. 
  • Portfolio compression orders will only be executed against each other if all Exchange Participants participating in a portfolio compression cycle have confirmed the portfolio compression orders entered on their behalf and the relevant portfolio compression cycle has been released in the system of Eurex Deutschland as complete and correct by the portfolio compression service provider.
  • If until the end of the trading day on which the portfolio compression cycle was initiated the confirmations of the participants in a portfolio compression cycle have not been submitted or the portfolio compression cycle has not been released by the portfolio compression service provider, all portfolio compression orders of the portfolio compression cycle will be deleted in the system of Eurex Deutschland and the portfolio compression cycle will be cancelled. 
  • Portfolio compression trades can not be cancelled upon request of an Exchange Participant. Only ex-officio cancellation by the Management Board of Eurex Deutschland is possible.

B.    Compression service fees

In order to support compression services, a fee holiday of the monthly basis fees for compressors and the fee for compression cycles will be offered from 29 March until 30 June 2021. 

For detailed information on the Price List, please refer to Eurex circular 023/21


Attachment:

  • Updated sections of the Conditions for Trading at Eurex Deutschland


Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target groups:

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

Contact:

client.services@eurex.com

Related circulars:

Eurex circular 023/21, Eurex Clearing circular 019/21

Web:

Support > Initiatives & Releases > Project Readiness > Compression

Authorised by:

Michael Peters


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