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14 Aug 2024

Eurex

Equity Index Derivatives: MSCI World IT Index Futures: Upcoming transition from non-narrow-based to narrow-based and withdrawal of U.S. direct access tradability

Eurex Circular 081/24 Equity Index Derivatives: MSCI World IT Index Futures: Upcoming transition from non-narrow-based to narrow-based and withdrawal of U.S. direct access tradability

1. Introduction

With effect from 23 September 2024, U.S. direct access tradability of the following product will be withdrawn for U.S. Eurex Participants:​

Product name

Product ID

Currency

Previous Capacity Group

New Capacity Group

MSCI World IT Index Futures

FMWL

USD

Cash Section 871m USD - CFTC

Cash Section 871m USD


2. Required action

All Trading Participants that have open positions in MSCI World IT Index Futures must comply with applicable Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) regulation once Futures contracts transition to Foreign Security Futures Products (FSFPs).


3. Details of the initiative

The above MSCI World IT Index Futures will transition from non-narrow-based security index futures to narrow-based security index futures effective at the close of trading of 5 November 2024. Accordingly, the CFTC will be withdrawing its non-narrow-based certification for the contracts at this upcoming date.


After the close of trading on 5 November 2024, MSCI World IT Index Futures contracts will be security futures and must therefore be traded in accordance with both the U.S. securities and commodity futures laws.

Eurex Exchange notes that, in order to ensure compliance, its 23 September 2024 withdrawal of direct access tradability for U.S. Eurex Participants is in advance of the official date of the MSCI World IT Index's transition to a narrow-based security index.


All Trading Participants are reminded that all trading of eligible FSFPs for U.S. accounts must comply with the 2009 SEC Order, the Commodity Exchange Act, and the terms of Eurex Circular 105/21.

The multicast addresses for data distribution remain unchanged. However, the following changes have been made for the port numbers:

  • Snapshot messages: Port change from 59000 to 59032
  • Incremental messages: Port change from 59001 to 59033

The corresponding new "capacity group" for MSCI World IT Index Futures is "Cash Section 871m USD" (previously:  "Cash Section 871m USD - CFTC").
 

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 Circular 105/21

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: 

Robbert Booij


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