DMA Flag Introduction with T7 Release 8.0

1. Introduction

This circular outlines important information regarding changes to the Direct Market Access (DMA) flow identification at Eurex Deutschland (Eurex Exchange). With the T7 Release 8.0, scheduled for 18 November 2019 the field “OrderOrigination” (DMA Flag) will be introduced.

This flag is only relevant for Eurex Trading Participants intending to grant another person (indirect Trading Participant) direct access to the Eurex market via its infrastructure for the transmission of orders, pursuant to §61 of the Exchange Rules of Eurex Deutschland.
 

2. Required action

According to § 61 (1) of the Exchange Rules of Eurex Deutschland, providers of direct access are obliged to authorize their DMA system with Eurex Exchange via a respective updated application form, in tandem to the updated technical requirement. The application form is attached to this circular (see attachment 1).

Additionally, DMA providers shall apply technical requirements for the flagging of DMA orders with the upcoming release. With introduction of T7 Release 8.0, T7 will be enhanced in a way that participants must directly flag orders using the newly introduced field OrderOrigination in the ETI and FIX interfaces. The flag will be optional and is only available for orders with Trading Capacity set to “Agency”.
 

3. Details of the initiative

3.1 Authorisation of DMA system with Eurex

In order to adhere to § 61 Eurex Exchange rules, Eurex Trading Participants intending to provide DMA are obliged to authorize their DMA system with Eurex Exchange via the updated application form, which is attached to this circular (see attachment 1). The updated application form does not require to provide a dedicated trader ID for a DMA system anymore.

Trading Participants that already provided a DMA application to Eurex Exchange in the past, will automatically be classified as authorized DMA providers and do not need to provide an application update.

Trading Participants who are not authorized DMA providers at Eurex Exchange, are not allowed to provide DMA to Eurex Exchange. In case the DMA flag is used by a Trading Participant who is not an authorised DMA provider, the respective order ID will appear in member error report, i.e. TR165. Trading Participants shall contact their respective Key Account Manager to clarify immediate steps.
 

3.2 New flag or DMA identification requirement

As announced in the preliminary release notes on 21 May 2019, the new flag “OrderOrigination” will be introduced in the T7 system. With the aim to flag DMA orders to Eurex Exchange, Trading Participants must set “OrderOrigination” to ‘5’. The flag shall be used in conjunction with Trading Capacity = 1 (Agency), otherwise the order will not be accepted by the Eurex T7 Trading System. The usage of the DMA flag will not be linked to any trader ID.

Please refer to attachment 3 for the technical field description.

The information regarding “OrderOrigination” will be reflected in the Eurex reports TE540, TE550, TE810.

At Eurex Exchange, order flow will be labelled as DEA in the exchange order record keeping (Audit Trail) according to DR 2017/580 (RTS24), only if trading participants will set OrderOrigination = ‘5’ (“DMA Flag”).

Please note that ESMA fields for the DEA labelling shall be still filled by Market Participants according to Guidelines on Transaction reporting, order record keeping and clock synchronization under MiFID II, i.e. “Execution decision within firm”, “Investment decision within firm” and “Client identification code”. The labelling logic is described in the Eurex Guide on DEA/DMA (see attachment 2).

Attachments:

1. Application for Authorisation of Systems granting Direct Market Access (DMA)
2. Eurex Guide on DEA/DMA with T7 release 8.0
3. Technical field description