The Management Board of Eurex Deutschland and the Executive Board of Eurex Zürich AG decided to implement, together with T7 Release 2.5, features for EURIBOR futures which will significantly facilitate trading in money market contracts.
From 8 December 2014, Participants will be able to use packs, bundles and strips as well as new standardised futures strategies. Please note that activation of the new features will be effective as of 8 December 2014 and not as of 1 December 2014, as announced in Eurex circular 238/14.
In the context of the introduction of packs, bundles and strips, the tick size of the EURIBOR future (FEU3) on product level will be reduced from 0.005 to 0.0025. Accordingly, the tick value will decline from EUR 12.50 to EUR 6.25 and the display of decimals will be increased from three to four decimals. The minimum price change for outright contracts (simple instruments) and standardised futures strategies (futures calendar spreads and the newly introduced futures strategies “butterfly” and “condor”) remains unchanged at 0.005. For the newly introduced standardardised futures strip strategies (packs and bundles) and the non-standardised futures strip strategies (strips), the minimum price change will be 0.0025.
To incentivise trading in the new product strategies, transaction fees for packs and bundles will be waived from 8 December 2014 until 30 June 2015. From 1 July 2015, packs and bundles will be available for trading at reduced transaction fees compared to single outright contracts.
This circular contains information related to trading of the new products as well as to the amended sections of the relevant Rules and Regulations of Eurex Deutschland and Eurex Zürich AG. Information on clearing of the new products as well as the updated sections of the Price List for Eurex Clearing AG are part of Eurex Clearing circular 165/14 which we are providing to our Trading Participants as attachment 2.