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Fixed income derivatives: Introduction of options on Euro-Buxl Futures

Release date: 24 Jun 2020 | Eurex Exchange

047/2020 Fixed income derivatives: Introduction of options on Euro-Buxl Futures

Eurex Circular 047/20

1.   Introduction

The Management Board of Eurex Deutschland took the following decision with effect from 28 September 2020:

  • Introduction of options on Euro Buxl® Futures pursuant to the Attachment

The launch is subject to regulatory approval. 

To implement this decision, the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland (Contract Specifications) shall be amended as set out in the Attachment.

This circular contains all information on the introduction of the new products, the adjustment of the existing products and the updated sections of the relevant Rules and Regulations of Eurex Deutschland.

  • Simulation start:  3 July 2020
  • Production start: 28 September 2020

2.   Required action

There is no action required for participation.

3.  Details

A. Product overview

Eurex Exchange will extend its range of options on German government bond futures with the launch of options on Euro Buxl® Futures. 

B. Contract Specifications and product parameters

Please find the detailed Contract Specifications in the Attachment. 

On the introduction date of the new products, the full version of the updated Contract Specifications will be published on the Eurex website www.eurexchange.com under:

C. Admission to the Eurex T7 Entry Services (TES)

The Flexible Options facility will be available upon acceptance of the General Conditions for Participation.

An overview of the Eurex T7 Entry Services available for the products as well as detailed information on options on Euro-Buxl® Futures with regard to availability, possibility of utilisation and minimum number of tradable contracts for the various Eurex T7 Entry Services is available on the Eurex website. 

CSV file “Trading Parameters” contains product parameter “Block Volume Publication Limit“ (see column “NonDisclosureLimit“) which defines the limit for volumes up to which Eurex Block Trades in the various products are published. Aforementioned information as well as the CSV file can be found on the Eurex website under the link: 

D. Risk parameters

As of start of trading, risk parameters for the options on Euro Buxl® Futures will be published on the Eurex website under the link: 

and on the Eurex Clearing website www.eurexclearing.com under the following path:

You will also find an updated list with details regarding Prisma-eligible Eurex products under this path. 

E. Mistrade parameters and position limits

Mistrade ranges and position limits for the options on Euro Buxl® Futures will be published as of start of trading on the Eurex website under the following link:

Products > Product information > Product specifications

F. Transaction limits

The same values apply as for existing products. For details, please refer to the Eurex website under the following link:

G. Transaction fees

The same transaction fees apply as for the corresponding existing options on Euro Fixed Income Futures.

Changes of the Price List of Eurex Clearing AG are detailed in the respective Eurex Clearing circular. 

H. Vendor codes

Options on Euro Buxl® Futures were assigned the ISIN DE000A2P7LF6.

At start of trading, vendor codes for options on Euro-Buxl® Futures will be published on the Eurex website under the link:

I. Liquidity provisioning

Details for Liquidity Provisioning will be provided in a separate Eurex circular prior to the launch.

J. Liquidity Classes 

Eurex Clearing grants volume rebates for Interest Rate Options and Interest Rate Futures according to § 3.2.2.2 of the Price List of Eurex Clearing AG. The volume rebates are subject to the Liquidity Class (“LC”) of each respective product. Options on Euro Buxl® Futures are categorised as Liquidity Class 3. 

Attachment:

  • Updated sections of the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland

Further information

Recipients:

All Trading Participants of Eurex Deutschland and Vendors

Target groups:

Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination

Contact:

 

client.services@eurexchange.com

Web: 

 

www.eurexchange.com

Related circular:

 

Eurex Clearing circular 051/20

Authorised by:

Michael Peters

 

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