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1. Introduction
The Executive Boards of Eurex Frankfurt AG and Eurex Clearing AG decided, with effect from 1 July 2025, to amend the General Supplement to the Liquidity Provider Agreement and the Product Specific Supplement “Equity 01 – Equity Options and Selected Equity Index Options”, as outlined in the Attachments.
Eurex Frankfurt AG hereby announces changes to the Liquidity Provider Program in EURO STOXX 50® Index Options (OESX) designed to support liquidity development in the Central Limit Order Book by providing financial incentives to Liquidity Providers.
The new program aims to:
A. Provide a wider and dynamic range of instruments stably quoted throughout volatility regimes, tracking and preceding trading interest, for the benefit of end users
B. Strengthen the Liquidity Picture with more competitive Orderbook rewards for Spread and Size quality capabilities of the Liquidity Providers, as well as their passive executions
The program will start in two phases. The first phase will start on 1 May 2025, date as of which Eurex’ measurement systems will be activated, but rebating will still take place according to the old framework. In the second phase, effective 1 July 2025, rebating will only take place based on the new program.
2. Required action
All Liquidity Providers in EURO STOXX 50® Index Options (OESX) should take note of the requirements stipulated in Attachments 1 and 2 of this circular and adjust their quotation activities accordingly.
The amendments will be deemed to have been approved if Liquidity Providers do not lodge objections with Eurex Frankfurt AG and Eurex Clearing AG within two (2) weeks after publication of this circular pursuant to Number 4 (2) of the Liquidity Provider Agreement.
3. Details of the initiative
The new framework will offer Trading Participants stable Liquidity Provider coverage, encompassing all expiries of OESX within the first two years along a wide delta range tailored to follow the trading needs of the market.
Eurex will introduce the Advanced Building Block (ABB) and an accompanying sliding scale, which will set incentive levels based on actual spread and size capabilities of individual Liquidity Providers.
To further strengthen the Orderbook, Eurex will open a Passive Volume Incentive, rewarding Liquidity Providers based on execution against their quotes and resting orders in the Orderbook.
By combining the three elements into one framework Eurex will ensure that Trading Participants will have a stable and wide covered instrument surface, over which Liquidity Providers compete in Spread and Size quality and are rewarded for showing the most competitive quote possible as part of their incentive structure.
Attachments 1 and 2 outline all the details of the new framework and specific parameters for EURO STOXX 50® Index Options (OESX) program.
The currently valid versions of the documents can be found at Eurex website www.eurex.com under the following path
Trade > Market-Making and Liquidity provisioning
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 | |
Contact: | client.services@eurex.com and eurex.pricing@eurex.com | |
Web: | Market-Making and Liquidity provisioning | |
Authorized by: | Randolf Roth |
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