The international derivatives exchange Eurex successfully launched over the last week major system enhancements. As of 3 December, the exchange introduced a new Eurex market data feed – the Enhanced Broadcast Solution (EBS). Eurex also launched its system Release 10 at the end of November.
The new data feed EBS offers an innovative high-performance market data broadcast solution for un-netted public market data. The socket-based distribution mechanism features among others an order book depth of 10 for options (previously only inside market data was provided), an enhancement of order Book depth to 20 for benchmark futures (previously 10) and a new subscription model, allowing members to select individual market data of all product groups relevant for their business. Along with the launch of EBS, the new data feed CEF ultra+ of Deutsche Börse Market Data & Analytics was started. CEF ultra+ contains the same market depth as EBS but distributes Eurex trading data to non-Eurex members like data vendors also with lowest latency. It is enriched by a „trade recovery“ functionality which is necessary for data vendors.
Eurex Release 10 was introduced on 26 November. The system enhancements focus on reducing latency and introducing advanced risk management functionalities as well as improved wholesale and OTC trade entry facilities. The Eurex system offers now the new order attribute “non-persistent”. A "non-persistent" order will be processed a lot faster than recoverable persistent orders; it will protect high frequency trader because non persistent orders will not be automatically resubmitted to the order book after a trading interruption or technical problem. With Release 10 all quotes are “non-persistent” by definition. This feature has already been widely accepted, Eurex members are heavily using the new order attribute and most orders submitted to Eurex are now non-persistent.
Eurex customers also benefit from new pre-trade risk protection features that help to optimize risk control to further increase the security of the entire marketplace. Both, clearing members and non-clearing members now have additional tools to monitor and control trading behavior. In addition to these pre-trade risk measures, Eurex also introduced a stop button that can be used by clearing firms to react in emergency situations. This stop button deletes all orders and quotes of the non-clearing member in question and prevents further order and quote entry.
Release 10 also extends flexible OTC-trading facilities. It will offer for the first time the customization of futures. The new OTC Flexible Futures functionality is available for more than 400 stocks, 50 equity indexes and on ETFs. Customization is possible in terms of individual selection of maturity dates and settlement choices, the OTC Flexible Futures can also be traded with all system features that counterparties already use within the Flexible Options facility. In addition to that Eurex has also implemented a series of functional enhancements on OTC Flexible Options that facilitate back office processing, such as Trade Separation, Partial Close-Out and Partial Exercise.
In the future, more than 700 Eurex products will be available for tailor-made OTC trading.