Changes to the Exchange Rules of Eurex Deutschland, the Conditions for Trading and the Contract Specifications for Futures and Options Contracts at Eurex Deutschland

1.    Introduction

This circular informs you about amendments to the

• Exchange Rules of Eurex Deutschland (“Exchange Rules”) by means of the Fifteenth Amendment Ordinance,
• Conditions for Trading at Eurex Deutschland (“Conditions for Trading”) by means of the Twenty-eighth Amendment Ordinance and
• Contract Specifications for Futures and Options Contracts at Eurex Deutschland (“Contract Specifications”).  

Above-mentioned Amendment Ordinances and the amended sections are attached to this circular. The amended Rules and Regulations including corresponding Amendment Ordinances are available for download on the Eurex website www.eurex.com under the following link: Eurex Rules & Regulations.

The amendments will come into effect on 27 November 2023. 

2.    Required action

There is no specific action required by the participants.

3.    Details of the initiative

a)    Regulations for dealing with disruptions of Exchange Trading 

Eurex Deutschland has consulted on the handling of disorderly markets (Market Disruptions) with a proposal to amend the Exchange Rules and the Contract Specifications with rules that define “Disrupted Market Conditions” and set out possible measures that the Management Board of Eurex Deutschland may take in response. In particular but not limited to the occurrence of Disrupted Market Conditions, the Management Board may order one or a combination of the following measures: 

(i)    early termination and settlement of Contracts, 
(ii)   postponement of the expiry date of Contracts, 
(iii)  exclusion of physical delivery, 
(iv)  definition of an alternative currency for Contracts,  
(v)   suspension or termination of trading of Contracts according to § 25 of the German Stock Exchange Act and § 13 of the Exchange Rules, 
(vi)  determination of maximum and/or minimum prices for individual Contracts.

Attention is drawn to the possibility that the Management Board of Eurex Deutschland may postpone the expiration date of Contracts. This measure will technically change the contract expiration date that is available in the reference data feed. Participants need to be prepared for changes in the contract expiration date during the lifetime of the contract.

The guiding principle of the Management Board of Eurex Deutschland for handling Disrupted Market Conditions is covered in § 12 para. 5 of the Exchange Rules, according to which the Management Board shall consult with Eurex Clearing AG and consider in particular but not limited to, 

(i)    the damage potentially caused in case of implementation of the order or measure, 
(ii)   whether orderly settlement of the Contracts is ensured, 
(iii)  alternative measures, 
(iv)  any trust of Admitted Companies in the continuance of the Contracts, 
(v)   the remaining term of the Contracts affected by the order or measure and, 
(vi)  the current market conditions,

before taking actions in response to Disrupted Market Conditions. 

The Contract Specifications have been amended accordingly. They now reflect the measures that the Management Board of Eurex Deutschland can take on an individual product level.

b)    Adjustment of the regulations on Cross and Pre-arranged Trades

The rules on Cross and Pre-arranged Trades in Number 2.6 of the Conditions for Trading are simplified. On the one hand, the sequence of Trade Request and orders specified in Number 2.6 will no longer apply. Secondly, the entry time for crossing and pre-arranged trading is extended from 61 seconds to 121 seconds. 

In addition, the new optional functionality for Eurex T7 Release 12.0 will be made available to Trading Participants in November 2023, which automates the entry of the Trade request and the entry of orders in the order book.

c)    Adjustment of the regulation for pre-trade controls

The provisions on pre-trading controls in § 10 of the Exchange Rules will be made more precise, and the Management Board of Eurex Deutschland will be provided with the option to specify maximum order values and maximum order volumes for each security tradable at Eurex Deutschland. These maximum amounts will apply in addition to the corresponding maximum amounts the Trading Participants must specify for their Exchange Traders in respect of each security. In addition, in respect of each security, binding price collars and price collars that are optional are being set.

Orders outside a price collar or exceeding the maximum amounts will be rejected automatically by the Exchange EDP. Eurex Deutschland is currently reviewing its maximum order values and maximum order volumes. Changes to those will be published separately.

Admitted companies may have set up procedures where, in the individual case, no controls of the maximum amounts determined by them are executed by the Exchange EDP, or optional price collars are not applied. Moreover, upon request of the admitted company, rejected orders may, in the individual case, be accepted by the Management Board of Eurex Deutschland.

d)    Preparation for Introduction of Delta Neutral Trade at Market Transactions

Eurex Deutschland intends to launch so-called Delta Neutral Trade at Market Transactions (“Delta TAM Transactions”). In this respect, Delta TAM Transactions were included in Number 4.3 para. 8 of the Conditions for Trading as a new transaction type for Off-book Trading. 

Following the adjustment of the Contract Specifications in the first quarter of 2024, Delta TAM Transactions are expected to be possible at Eurex Deutschland from this date.

e)    Other editorial changes

In Number 3.9 Conditions for Trading, minor editorial changes are to be made. These changes do not affect the content of the Section.

Attachments:

1. Fifteenth Amendment Ordinance of the Exchange Rules of Eurex Deutschland
2. Twenty-eighth Amendment Ordinance of the Conditions for Trading at Eurex Deutschland
3. Amended Sections of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland

Further information