28 Nov 2023

Eurex | Eurex Clearing

Eurex has refined its Market Disruption Rules

With effect from 27 November 2023, Eurex has refined its Market Disruption Rules based on the experience gained in past crisis situations (Russia’s war against Ukraine, Covid-19 crisis), in which the orderly price discovery of a derivative instrument may be distorted, and orderly trading may no longer be maintained.  

When such events have occurred in the past, Eurex Deutschland has been able to take swift action in accordance with the existing legal and regulatory framework (§§12/13 of the Exchange Rules). These measures have generally worked as intended, but it is important for market participants to be able to transparently assess how Eurex will handle such events, especially as the causes and effects of these market disruptions are diverse. 

To further increase transparency and predictability in handling these types of events in the future, Eurex has decided that certain refinements may be beneficial to the market. It has therefore launched a consultation with market participants on how to deal with disorderly markets along with proposed amendments to the Exchange Rules, contract specifications and related changes to the Clearing Conditions.   

Based on the feedback received, §12 of the Exchange Rules now defines criteria for “disrupted market conditions” and sets out possible measures that the Eurex Management Board may take in response. The new rules also incorporate several guiding principles suggested by Exchange Members, such as the requirement that Eurex Management should always consult with Eurex Clearing before issuing orders or taking any other action.