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13 Jun 2023

Eurex

Foreign Security Futures: Transition of SMI® Futures (FSMI) from Ineligible to Eligible for U.S. Participants due to an extraordinary adjustment to the index composition

Eurex Circular 049/23 Foreign Security Futures: Transition of SMI® Futures (FSMI) from Ineligible to Eligible for U.S. Participants due to an extraordinary adjustment to the index composition

1.   Introduction

With this circular, Eurex Deutschland informs that SMI® Futures (FSMI) will transition from an ineligible to eligible foreign security futures product (FSFP) under the terms of the SEC’s 2009 Order governing eligibility of U.S. persons to trade of FSFPs (2009 SEC Order) due to an extraordinary adjustment to the index composition, effective as of 13 June 2023.

Effective date: 13 June 2023

2.   Required action

All Eurex Participants that are eligible to trade eligible FSFPs for U.S. accounts pursuant to the terms of Eurex Circular 105/21, the 2009 SEC Order, the CFTC’s 2010 Staff Advisory, and the Commodity Exchange Act may trade in FSMI consistent with the date of the adjustment to the SMI® Index, effective 13 June 2023, provided this trading complies with Eurex Circular 105/21, the 2009 SEC Order, the CFTC’s 2010 Staff Advisory and the Commodity Exchange Act.

3.   Details 

In Eurex Circular 017/23, Eurex Deutschland announced that FSMI had transitioned from eligible to ineligible for U.S. accounts. On 5 June 2023, the SIX Swiss Exchange (SIX), which administers the SMI® Index, issued a press release, stating that SIX will be carrying out an extraordinary adjustment to the SMI® Index on 13 June 2023. Specifically, due to the merger agreement between Credit Suisse and UBS Group AG, SIX will be delisting Credit Suisse shares from the SMI® Index and admitting Kühne+Nagel International AG shares to the SMI® Index.

Eurex Deutschland has determined that, under its calculations, this change to the composition of the SMI® Index will result in SMI® Futures’ satisfaction of the 2009 SEC Order’s eligibility test effective 13 June 2023.

Eurex Deutschland reminds any Eurex Participant that trades FSFPs listed on Eurex Deutschland for U.S. accounts that it does not undertake to issue circulars each time an FSFP transitions between Eligible and Ineligible but is providing this notice for SMI® Futures due to the interest in the contract.

U.S. Persons should consult with their legal and other advisors if they have questions about whether they may trade FSFPs listed on Eurex Deutschland. Any eligible U.S. customer wishing to trade FSFPs should consult with its eligible intermediary.
 

Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target groups:

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

Related circulars:

Eurex Circulars 105/21017/23

Contact:

client.services@eurex.com or Rachna Mathur, rachna.mathur@eurex.com, Equity and Index Sales America, tel. +1 212 309 93 08

Web:

www.eurex.com 

Authorized by:

Randolf Roth


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