Changes in Liquidity Provider Schemes in selected products and amendment of the General Supplement to the Liquidity Provider Agreement

1.    Introduction

The Management Board of Eurex Deutschland and the Executive Board of Eurex Frankfurt AG took the following decisions with effect from 1 September 2019:

• Amendment of the Product Specific Supplement (PSS) to the Liquidity Provider Agreement for Eurex Daily Futures on KOSPI 200 Options (OKS2)
• Eurex EnLight: Amendment to the General Supplement to the Liquidity Provider Agreement, in particular with regards to the Eurex EnLight RFQ validity for fulfilment of the Eurex EnLight Building Block (EBB)
• Amendment to the Product Specific Supplement (PSS) to the Liquidity Provider Agreement for DAX^® Weeklies and amendment of quoting parameters (spread and size class) for selected equity options.

2.    Required actions

Liquidity Providers (LP) should adapt their quotation behaviour accordingly.

3.    Details 

• Liquidity Provider Measurement for Eurex Daily Futures on KOSPI 200 Options (OKS2)

With effect from 1 September 2019, due to the retail nature of the Eurex Daily Futures on KOSPI 200 Options (OKS2) product, Liquidity Provider (LP) quotation with two-sided limit orders will be included in the LP measurement for that respective product. The provisioning of liquidity via quotes will remain unchanged.
 

• Eurex EnLight: Amendment to the General Supplement to the Liquidity Provider Agreement

To prevent that the measured Liquidity Provider performance for the Eurex EnLight Building Block may be adversely impacted by bilateral RFQs, Eurex Deutschland and Eurex Frankfurt AG decided to exclude such RFQs from the overall market count. This means, going forward, only those valid Eurex EnLight RFQs will be counted into the total market statistics that are addressed to more than one responder. This may result in a reduced number of total market RFQs. 

This might be relevant for Eurex EnLight Liquidity Providers, who have passed the EnLight certification test, against the background that if – per product and calendar month – the total market has received 15 RFQs or less, and the Eurex EnLight Liquidity Provider has received five RFQs or less. In this case, the Eurex EnLight LP rebate will be considered as fulfilled regardless of the actual response behaviour.
 
With effect from 1 September 2019, the General Supplement to the Liquidity Provider Agreement will be amended, as outlined in Attachment 4. 

• Amendment to the Liquidity Provider schemes for selected products: Equity options

With effect from 1 September 2019, the following changes will be made in the Liquidity Provider scheme Equity-01 for the equity options specified below:

In the "Product Specific Supplement (PSS) for Weekly Options on DAX^® Index”, a change is made to further elaborate on the fulfilment criterion for the Package Building Block.

Attachments:
(all valid as of 1 September 2019)

• Attachment 1 – Amended PSS for Equity Options and Selected Equity Index Options (Equity-01) 
• Attachment 2 – Amended Liquidity Provider Scheme for Eurex Daily Futures on KOSPI 200 Options (Equity Index-18)
• Attachment 3 – Amended PSS for Weekly Options on DAX^® Index (Equity Index-33)
• Attachment 4 – Amended General Supplement to the Eurex Liquidity Provider Agreement