Key information on emergencies and trading safeguards at Eurex

1.   Introduction

With this circular, we would like to draw your attention to important points regarding the reachability, requesting on-behalf services, user entitlements and exchange limits that apply to Trading Participants of Eurex Deutschand.

2.   Required action

Trading Participants should familiarize themselves with the requirements related to emergencies and safeguards arising from the Exchange Rules of Eurex Deutschland (hereafter: “Exchange Rules”) and take appropriate measures to ensure compliance at all times.

3.  Details

A. Reachability of trading staff

Please note that Admitted Companies need to be reachable at any time when they participate in exchange-trading (§ 29 Paragraph (5) in conjunction with § 60 of the Exchange Rules).

This includes any situation where Trading Participants have active, non-executed orders in the orderbook but also situations right after a trade execution of the involved Trading Participant. Particularly in the case of a mistrade, it is of utmost importance that Eurex can reach the involved Trading Participants quickly under their telephone number or – during the extended trading hours – under their emergency contact number, both as registered in the Member Section of Deutsche Börse Group.

Please note that the Eurex Central Coordinator of each Trading Participant should verify regularly if the contact information provided in the Member Section is up to date and, if not, trigger a timely update of the contact information. This information can be maintained at any time via the Member Section. For the phone number associated with user IDs, the path in the Member Section is: 

Trading & Clearing Administration > GUI User ID Maintenance > GUI User ID Overview > Change phone number

For Extended Trading Hours Emergency Contact: Company Contacts.

Non-compliance with the relevant regulations can lead to sanctions by the Sanctions Committee. 

Eurex Circular 069/23 provides an overview on this matter.

The relevant applicable rulebook reference is § 29 of the Exchange Rules, in particular, sections (5) and (6): 

§ 29 Requirements regarding Technical Equipment and Organisation

“(5) Each Admitted Company is obligated to guarantee the presence of a sufficient number of qualified personnel on its business premises at all times during all Trading Periods according to § 60 and to guarantee the availability by telephone in order to ensure the orderly operation of its exchange trading and the settlement of Transactions of Eurex Deutschland, particularly in order to take the necessary measures at the instruction of Eurex Deutschland in the event of a technical disruption. In addition, Eurex Deutschland must be provided with the name of a person to be contacted in the event of a technical disruption or with proof of a service agreement with a third party.

(6) In deviation to Paragraph 5 Clause 1, Trading Participants trading Derivatives which may be traded between 1.00 a.m. and 07.50 a.m. (“Extended Trading Period”) and which do not actively participate in trading during this night phase, are not obliged to guarantee the presence of qualified personnel nor the availability by telephone during the Extended Trading Period. For Trading Participants who have Orders which have not been executed in the Eurex Trading System during the Extended Public Trading Period, enter new Orders, modify existing Orders or participate in exchange trading in any other way, Paragraph 5 Clause 1 shall apply during the Extended Trading Period with the restriction that the availability by telephone must be guaranteed.”

B. Authentication for Trading on-behalf Service

When requesting trading on-behalf services by Eurex Trading Operations, the respective contact needs to authenticate themselves via their personal Member ID and User ID, together with their personal PIN number in order to ensure a timely processing of the following offered inquiries:

• On-exchange on-behalf entries (order add/modify/delete/mass deletion)

• TES on-behalf entries (trade add/approve/modify/delete)

• Stop/Release User/Business Unit inquiries

All Trading Participants must be aware that Eurex Trading Operations will reject such inquiries in case required authentication information is not provided. The respective Eurex Administrator of each Trading Participant can help in the administration of the required information in T7.

C. Recommended User Level and Entitlements

For emergency situations, it is highly recommended that at any time during the trading hours, a Trading Participant contact person with the Eurex User ID level “Supervisor” and “Emergency Mass Deletion” role is available.

Trading on-behalf requests addressed to Eurex Trading Operations are validated against the provided Eurex User ID level and entitlements in T7. This means that, for deletions of orders, irrespective of a correct authentication of the Trading Participant:

• A trader will only be able to have all orders deleted that were entered by their own Eurex User ID.

• A head trader will only be able to have orders deleted that were entered by their own Eurex User ID and those of the traders assigned to their Eurex user group. The head trader must also specify to Eurex Trading Operations every single Eurex User ID for which a mass deletion should be performed.

• Only a supervisor will be able to have orders deleted for the entire business unit.

To cancel orders and quotes for all products instead of a single product – the respective user needs to have the “Emergency Mass Deletion” role assigned.

Eurex User ID levels and roles are administrated also by the respective Eurex Administrator of each Trading Participant in the T7 Admin GUI. It is the Admitted Company’s responsibility to ensure that all necessary roles and user levels are assigned appropriately. In case the requesting user is not assigned the relevant user level or role, the Trading-on-Behalf request will generally be rejected.

D. Adherence to position limits set by the Exchange

A position limit defines the maximum number of contracts that an admitted company is permitted to hold for its own account or for its customers in a specific derivative product. According to § 11 of the Exchange Rules, the Management Board may set or alter position limits to ensure orderly exchange trading at Eurex Deutschland and to avoid risks for the spot markets.

Admitted companies must ensure that they have appropriate measures in place to comply with position limits. Please note that if the positions kept on the customer position accounts of an Admitted Company as a whole exceed the position limit, the Trading Surveillance Office must be provided with evidence that the relevant customers’ positions are within the position limits. Upon request by the Trading Surveillance Office, evidence must be provided with regard to a single or to all of the individual positions of the customer account and with regard to the relevant customers, even independently from a position limit being exceeded. 

In case of failure or suspected failure to adhere to the position limits as defined in § 11 of the Exchange Rules, admitted companies are obliged to immediately reduce the position violating the position limit. The Management Board of Eurex Deutschland reserves the right to reduce such positions at its own discretion.

Further details can be found in § 11 of the Exchange Rules and on the Eurex website www.eurex.com under the path:

Data > Trading files > Position Limits.
 

Further information