A member of
Eurex
1. Introduction
The Management Board of Eurex Deutschland took the following decisions with effect from 5 February 2024:
Simulation start: 22 December 2023
Production start: 5 February 2024
This circular contains all information on the introduction of the new products and the updated sections of the relevant Rules and Regulations of Eurex Deutschland.
2. Action required
There is no action required for participation.
3. Details of the initiative
With the launch of USD Emerging Market Sovereign Index Futures and Sterling Liquid Corporate Bond Index Futures, Eurex aims to expand the range of its Fixed Income Index derivatives to help investors manage their credit exposure in global portfolios.
The products in scope for launch are:
The launch of these new futures represents the latest effort of Eurex to build a global portfolio of fixed income index futures.
These futures will give market participants a unique and valuable toolbox of investment vehicles to manage credit exposure in all major global currencies and across multiple jurisdictions.
The versatile nature of these futures will enable investors to take long or short positions, and hence either hedge global credit portfolios, or take additional exposure to key fixed income benchmarks via leveraged index-linked products.
A. Contract Specifications and product parameters
Contract Specifications for the USD Emerging Market Sovereign Index Futures and Sterling Corporate Bond Index Futures follow the contract standards of existing Futures on Bond Indices in terms of trading hours and trading calendar, last trading day, settlement and determination of the daily and final settlement prices.
For the detailed Contract Specifications, please see the Attachments.
The full version of the updated Contract Specifications will be published on the Eurex website www.eurex.com as of start of trading under:
Rules & Regs > Eurex Rules & Regulations > 03. Contract Specifications
B. Admission to the Eurex T7 Entry Services (TES)
The new products will be admitted to the Eurex T7 Entry Services (TES). You can find the minimum block trade sizes on product level in the attached Contract Specifications in Attachment 2.
An overview of the Eurex T7 Entry Services available for the products as well as detailed information on single product basis with regard to availability, possibility of utilization and minimum entry size for the various Eurex T7 Entry Services is available on the Eurex website under the link:
Data > Trading files > T7 Entry Service parameters
C. Risk parameters
As of start of trading, risk parameters of the new products will be published on the Eurex website under the link:
Data > Clearing files > Risk parameters and initial margins
and on the Eurex Clearing website under the following path:
You will also find an updated list with details regarding Prisma-eligible Eurex products.
D. Excessive System Usage Fee and Order to Trade Ratio
The Excessive System Usage Fee and the Order to Trade Ratio for the new products have been defined according to the existing products (FINX). For detailed information, please refer to the Eurex website under the following links:
Rules & Regs > Excessive System Usage Fee
Rules & Regs > Order to Trade Ratio
E. Mistrade parameters and position limits
Mistrade ranges and position limits for the new products will be published as of start of trading on the Eurex website under the link:
Markets > Product Overview > Contract Specs
F. Transaction limits
The same values apply as for existing products with the relevant Eurex group ID. For details, please refer to the Eurex website under the link:
Rules & Regs > Excessive System Usage Fee
G. Transaction fees
The Bloomberg Index Futures will be subject to the transaction fees named in the table in Attachment 1.
For details, please refer to the Price List of Eurex Clearing AG available for download on the Eurex Clearing website www.eurex.com/ec-en/ under this link:
Rules & Regs > Eurex Clearing Rules & Regulations > 3. Price List
The following volume rebates named in the table in Attachment 1 will apply to both order book and TES transactions.
H. Vendor codes
As of start of trading, vendor codes for the new products will be published on the Eurex website under the link:
Markets > Product Overview > Vendor Codes
I. Availability in Eurex simulation
Starting from 22 December 2023, the futures on Bloomberg Emerging Market USD Sovereign & Sovereign Owned Index Futures and Sterling Liquid Corporate Bond Index will be available in the Eurex simulation environment for testing purposes.
For further information, please refer to the simulation calendar on the Eurex website under the following link:
Support > Initiatives & Releases > Simulation calendar
Attachments:
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 circular: | Eurex Clearing circular 096/23 | |
Contacts: | davide.masi@eurex.com, vassily.pascalis@eurex.com, client.services@eurex.com | |
Web: | www.eurex.com | |
Authorized by: | Randolf Roth |
Market Status ⓘ
XEUR
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