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31 Jan 2023

Eurex

EURO STOXX 50® Index Options (OESX): Enhancement of the Strategy Building Block liquidity provisioning requirements

Eurex Circular 010/23 EURO STOXX 50® Index Options (OESX): Enhancement of the Strategy Building Block liquidity provisioning requirements

1.  Introduction

The Executive Board of Eurex Frankfurt AG took the following decision with effect from 1 March 2023:

  • Enhancement of the Strategy Building Block liquidity provisioning requirements for EURO STOXX 50® Index Options (OESX) by including Options Volatility Strategies (OVS), pursuant to the Attachment.

Production start: 1 March 2023

2.  Required action

Liquidity Providers in OESX should adapt their quotation behavior accordingly.

3.  Details of the initiative

To strengthen the order book price discovery for Options Volatility Strategies (OVS) in EURO STOXX 50® Index Options (OESX), Strategy Building Block liquidity provisioning requirements will be enhanced by introducing response requirements on additional strategies, pursuant to the Attachment.

Furthermore, the Strategy Building Block coverage requirement in EURO STOXX 50® Index Options (OESX) will be reduced from 50 percent to 33 percent in the main product.

For the avoidance of doubt, Weekly Options and Options with Month-End-Expiries on EURO STOXX® 50 Index Options are 

  • not in scope of the new requirement to quote OVS and 
  • not in the scope of the coverage requirement change,

but are envisaged to follow in the near future. 

Attachment:

  • General Supplement to the Eurex Liquidity Provider Agreement


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, eurex.pricing@eurex.com

Web:

Market-Making and Liquidity provisioning

Authorized by:

Randolf Roth


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