News Center
04 Jun 2025

Eurex

OESX Liquidity Provider (LP) scheme Q&A

Benefit from improved pricing and increased order book depth with our new OESX liquidity program.

Q: Why is a new LP program necessary for the most liquid European equity index option product?

A: The new LP framework for OESX continues from where the previous program left off. We have achieved our initial goal of satisfactory pricing along the options curve, with stable spreads and sizes consistently quoted during various volatility levels. Now, it’s time for the next step: a liquidity program that fosters competition among LPs, rewards quoting excellence, and supports higher objectives, such as improving visible order book liquidity and expanding instrument coverage.

Q: What is Eurex aiming to achieve with the new framework?

A: The key benefits of the new framework include a substantial expansion of instrument coverage, particularly across a delta range closely aligned to where trading activity occurs. Eurex is introducing a new concept for measuring improvements in spread and size across the curve, paving the way for greater specialization and differentiation among LPs. In addition, Eurex is launching its incentive under the slogan “A good quote is a traded quote,” rewarding LPs that fulfill the new requirements.

Q: How will end clients benefit from the new program?

A: End clients benefit from over 2000 instruments quoted daily within tightly regulated standards, with all expiries up to two years consistently quoted. A broad delta range—from 5 to 75 for calls and - 2 to -75 for puts—is mandatory for quotation. As LPs compete to enhance the order book and maximize their incentives, end clients gain access to the best possible “shopping window” for their trading needs.

Q: Why is Eurex emphasizing the need to maintain a continuously priced options curve?

A: It’s no secret that liquidity tends to concentrate around certain strikes and expiries. Nevertheless, we aim to have the entire curve priced for our end users, ensuring better availability and quality. This supports more informed trading decisions and offers a broad selection of instruments to choose from.

Q: What are spread and size quality, and why are they important?

A: Eurex intends to move away from arbitrary fixed thresholds for spread and size, as these are often disconnected from market reality. Such thresholds can be demotivating because they lead LPs to focus on merely meeting the minimum requirement instead of providing the best possible quote quality. By measuring the time-weighted, continuous quality of spread and size provided by our LPs, we reward genuine performance and visible excellence, reflected directly on traders’ screens.

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