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01 Jul 2020

Eurex

EURO STOXX 50 Index Options: Introduction of additional expirations

Eurex Circular 053/20

1.   Introduction

The Management Board of Eurex Deutschland decided, with effect from 24 August 2020, to introduce for EURO STOXX® 50 Index Options (OESX) two additional quarterly expirations in the second year of the offered terms. These additional quarterly expirations will be introduced for March and September.

The liquidity requirements will be adjusted accordingly, effective as of 1 September 2020. For Liquidity Providers, the number of expirations to be quoted will increase from 10 to 12 expirations. All other requirements remain unchanged. 

  • Simulation start: 22 July 2020
  • Production start: 24 August 2020

2.   Required action

Trading Participants should adapt their trading and clearing systems to incorporate the new quarterly expirations. In addition, Liquidity Providers (LPs) should adapt their quotation behaviour accordingly.

3.   Details

Currently, Eurex offers in OESX only semi-annual expirations in the second year. These are in June and December. With the introduction of two additional quarterly expirations (March and September), Eurex wants to support additional and requested trading strategies like rolling positions from the quarter of the first year into the same quarter of the second year.

The new expirations in OESX will be within the existing term of up to 24 months to be quoted by LPs. Therefore, the new expirations will be part to the Liquidity Provider requirements. As of 1 September 2020, Liquidity Providers are required to quote 12 instead of 10 expirations. All other quotation requirements remain unchanged.

Attachments:

  1. Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland
  2. Amended Product Specific Supplement (PSS) to the Liquidity Provider Agreement

Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target groups:

Front Office/Trading, Middle + Backoffice

Contact:

Tobias Ehinger, Equity & Index Product Design, tel. +49-69-211-1 23 13, tobias.ehinger@eurexchange.com

Web:

www.eurexchange.com

Authorised by:

Michael Peters

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