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Eurex Pricing Roadmap 2020

Release date: 03 Dec 2019 | Eurex Clearing

No. 114/2019 Eurex Pricing Roadmap 2020

Eurex Clearing Circular 114/19

1.    Introduction

Eurex Clearing AG (Eurex Clearing) hereby announces the first elements of the Eurex Pricing Roadmap 2020 and provides further information on changes as well as the corresponding amendments to the Price List of Eurex Clearing AG (Price List) with respect to the following measures:

A.    Standard fee changes
B.    Harmonisation of Post-Trade fees
C.    Introduction of a fee for non-disclosed trades in Equity Futures
D.    Eurex EnLight fee differentiation

Measures A. – C. will come into effect on 2 January 2020, measure D. will come into effect on
3 February 2020.

2.    Required action

Market participants should ensure that their internal processes and technical interfaces are updated in order to process the amended fees properly.

3.    Details of the initiative

A. Standard fee changes

Eurex Clearing continues to differentiate between fees for proprietary trading and agency business in selected futures. The fee changes in the A-Account in certain Equity Index Futures and Interest Rate Futures will apply as of 2 January 2020 and can be found in Table 1 in Attachment 1.

The corresponding Post-Trade fees will be adjusted accordingly and are covered under measure B. 

B.  Harmonisation of Post-Trade fees

The harmonisation of Post-Trade fees affects the chapters 3.3 – 3.9 of the Price List and combines the following amendments:

  • Introduction of fee account differentiation across the post trade services
  • Application of dividend levels to Position Closing Adjustments in Equity Dividend Futures
  • Elimination of maximum fee for Cash Settlement in Equity Futures
  • Application of same logic to Position Closing Adjustment in Index Dividend Derivatives
  • Adjustment of Post-Trade fees in selected futures according to measure A. (Standard fee changes)

In order to reduce complexity, the logic of Post-Trade fees will be aligned with the logic of transaction fees. The changes will come into effect on 2 January 2020.

C.  Introduction of a fee for non-disclosed trades in Equity Futures

Non-disclosure is an optional feature for trades above a certain threshold. When reaching or exceeding this certain threshold, bilateral TES or EnLight trades can be chosen by the entering trader not to be disclosed intraday by Eurex Exchange’s T7. 

A corresponding tick box in the Block Trade entry window of the T7 Trader GUI can be used for specifying the intraday publication or non-disclosure. As announced in Eurex circular 032/19, the fee for individual non-disclosed TES or Eurex EnLight trades in Equity Futures, as detailed in Table 2 in Attachment 1 will be charged as of 2 January 2020.

D. Eurex EnLight fee differentiation

As announced in Eurex circular 022/19, Eurex Exchange starts differentiating standard fees in options across the execution mechanisms order book, Eurex EnLight and TES. Focus hereby is to strengthen on-book liquidity and to create a shift of off-book price discovery to on-venue trading. The differentiation only applies in the A-Account as of 3 February 2020, standard fees in P- and M-Accounts remain unchanged.

Equity Options: Please refer to Table 3 in Attachment 1 for the new standard fees.

Equity Index Options: Please refer to Table 4 in Attachment 1 for the new standard fees.

Interest Rate Options: Please refer to Table 5 in Attachment 1 for the new standard fees.

For all affected products, the reduced fee will be adjusted accordingly (50 percent of standard fee).

With regard to Average Pricing Processing in Eurex Clearing’s C7, an average price merge carries a new trade type ("TrdType") and only an on-book/off-book differentiation using the “OrigTradeHandlingInstr” information is currently possible. In order to ensure a correct and seamless handling of fees, TES transaction fees are applied for off-book merged transactions without further differentiation between TES and Eurex EnLight until a correct differentiation will be possible. These changes will come into effect on 3 February 2020 as well.

Amendments A. – C. (Attachment 2) will become effective on 2 January 2020 and amendment D. (Attachment 3) will become effective on 3 February 2020.

As of the effective date, the full version of the amended Price List will be available for download on the Eurex Clearing website www.eurexclearing.com under the following link:

The changes and amendments to the legal framework of Eurex Clearing published by this circular under items A. – D. above are deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects by written notice to Eurex Clearing AG within the first ten (10) Business Days after publication. Any ordinary right of Eurex Clearing AG to terminate the respective contract (including a Clearing Agreement, if applicable) shall remain unaffected.

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG, as applicable.

Attachments:

  • 1 – Detailed information about the fee changes
  • 2 – Updated sections of the Price List of Eurex Clearing AG (as of 2 January 2020)
  • 3 – Updated sections of the Price List of Eurex Clearing AG (as of 3 February 2020)

Further information

Recipients:All Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG, vendors, and all FCM Clearing Members and other affected contractual parties
Target groups:Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination
Contact:

Eurex Pricing, eurexpricing@eurexchange.com

Related circulars:Eurex Clearing circulars 020/19, 027/19, Eurex circular 117/19
Web: www.eurexclearing.com
Authorized by:Matthias Graulich