Enhanced Assignment Algorithm

As an improvement to the delivery process, a change has been made to offset equal but opposite positions before delivery actually takes place. Currently, when a Member exercises a long position, there is no netting with short positions that possibly exist within the Member position accounts. This enhanced assignment algorithm results in a fairer, more orderly market and discourages exploiting operational efficiencies.

With Eurex Release 11.0, in order to improve the efficiency of the Eurex settlement process for equity options, the random allocation algorithm will be amended. When a Member exercises a long position in a P- or M-account, there will be a check to find if there is an assignable short position in the same contract (same month, exercise price and underlying) in any other P- or M-account of this Member.

If the same but opposite (short) position exists, the exercised position will first be netted against the member's own short position before the remaining exercised position will be allocated. If there is no position to be netted, the allocation process works as before.