Introduction of additional audit rights and amendments to the Excessive System Usage Fee

1. Introduction

The Executive Board of Eurex Frankfurt decided to introduce additional rights for Eurex Deutschland, which allows the inspection of Trading Participant’s premises and data processing systems, and to amend the Excessive System Usage (ESU) fee. Those amendments are not related to each other but are defined in the same legal documents and will therefore be equally communicated with this circular.

These amendments will come into effect on 1 August 2019.

2. Introduction of additional rights for Eurex Deutschland regarding the inspection of participant’s premises and data processing Systems

To ensure fairness and equality among Trading Participants, Eurex Deutschland introduces the possibility to audit the infrastructure and connection (cables) of Trading Participants of Eurex Deutschland.

Eurex Deutschland will be entitled to conduct on-site or remote inspections on trading participant’s premises and data processing systems in order to inspect whether they are compliant with all rules and regulations governing trading at Eurex Deutschland. Third-party premises rented by Trading Participants shall also be subject to the audit and Eurex Deutschland shall be enabled to enter these premises.

In general, there should be not more than one audit per year in order to avoid unnecessary interruptions of the Trading Participant’s business operations.

Eurex Deutschland may audit specific server locations, which does not cause any interruptions of business operations, with a prior notice period of one hour.

3. Amendments to the Excessive System Usage (ESU) Fee: Activation of the Dynamic Limits for Standard Orders

As standard orders consume higher system capacity compared to lean orders, Eurex Deutschland applies smaller ESU limits for such transactions compared to the more generous limits for the limit type “All transactions”. The decommissioning of the lean GTC/GTD functionality (i.e. lean orders which can be entered with a validity of GTC/GTD) with T7 Release 7.1 will make Trading Participants, who are active in less volatile products, use Standard Orders to ensure time priority. To account for that, Eurex Deutschland will consider the performance for Trading Participants fulfilling the minimum quotation requirements and use the well-known Dynamic Limit methodology for the limit type “Standard Orders”, which is already in place for the limit type “All transaction”.

A concept paper describing the ESU fee concept in detail, including the various parameters that are considered for the calculation of the ESU fee, and an example showing a step-by-step calculation, are available on the Eurex website www.eurexchange.com under the following link:

Technology > Excessive System Usage Fee

The table in Attachment 1 shows the parameters used to calculate the ESU limit for the limit type ”Standard Orders”. The limits for the new limit type are calibrated in such a way that they will have no impact on most of the Trading Participants. The parameters for calculating the limits for the limit type “All transactions” and “Transactions, which do not lead to a market data update, and for order modification which will lead to an order deletion without a contract traded” remain in place unchanged.

Please note: The limit is based on the product type of the product.

A list of all products, including the product types, is published on the Eurex website and can be downloaded under the following link:

Products > Product Overview > Complete list of all Eurex products in csv format

Attachments:

1. ESU parameter for the limit type „Standard Orders"
2. Updated General Terms and Conditions to the Agreement on the technical connection and the utilization of the Exchange-EDP of Eurex Deutschland (Connection Agreement)
3. Updated General Terms and Conditions to the Agreement on the technical connection of a Multi-Member-System Provider to the Exchange-EDP Eurex® (Provider Connection Agreement)
4. Updated Price List to the Agreement on the technical connection and the utilization of the Trading System of Eurex Deutschland (Connection Agreement)