Transaction management listed derivatives

We provide a wide range of transaction management services for our derivatives market. A number of flexible features that facilitate back office processing for Clearing Members are built into the system.

Our transaction management for derivatives services include:

  • Booking all transactions to the relevant position accounts of a member
  • Offering a range of transaction and position maintenance functions and reflecting the result in the member's account
  • Auto exercise positions based on the parameters set by the member
  • Assigning exercises to short positions
  • Creation of new futures positions and instructions of physical deliveries following exercises / assignments or notification / allocations
  • Corporate Actions processing


Give-up/take-up

The give-up functionality allows members to transfer transactions to other members. The acceptance of transferred transactions is called take-up. The receiving member and the respective Clearing Member must accept the give-up for it to become valid. All give-up/take-up requests of an initiating member require the approval of their respective Clearing Member. Clearing Members may specify auto-approval per participant. The give-up Clearing Member can approve at any time (i.e. it can be the first, second, or third action in the process). The take-up Clearing Member can only approve after the take-up participant Exchange Member NCM has claimed or taken-up the transaction.

The following conditions must be met for a transaction to be available for give-up:

  • The transaction is "to open"
  • The source account is held gross (i.e. give-up from an M account is not possible only for trades entered as quotes)
  • The transaction duration has not expired (i.e. on T=trade date, T+1, T+2 and T+3)
  • The contract has not expired

The initiating Member can cancel the give-up process as long as the status is "pending". Deleted or rejected give-up transactions remain in the account of the initiating Member. The same applies for give-up transactions that are not fully accepted by the clearing period.

Pending give-up processes are not cancelled during a booking cut (EOD processing) but will automatically be reallocated on the next business day if the conditions for give-up (see above) are still met.

Transactions that are part of a pending give-up process cannot be adjusted.

Atlantis service

Eurex Clearing supports the Atlantis service (formerly known as eGAINS) from the FIA Technology Services, Inc., a wholly-owned subsidiary of FIA (Futures Industry Association). The Atlantis service is aimed to address inefficiencies in the brokerage, billing and payment process related to the processing of give-ups to allow for an electronic handling, reconciliation and break-management between executing and clearing brokers.

Eurex Clearing incorporates a daily transfer of give-up and take-up related transaction data to the Atlantis system. To comply with data protection and privacy only give-up and take-up data where all involved parties have subscribed to the Atlantis service will be prepared for transmission to the Atlantis system.

In order to participate in this automated billing service, interested firms need to initiate an Atlantis agreement with the FIA Technology Service, Inc. Following this agreement between the participant and the FIA Technology Services, Inc., the members will be set up accordingly by Eurex Clearing.

Position transfer

Eurex Clearing distinguishes internal position account transfers (Own Accounts of the Clearing Member) and external position transfer (Transfer to another Member).

Internal position account transfer (between own accounts of the Clearing Member)

Internal position transfers are executed immediately; exercised or assigned positions cannot be transferred.

External position transfer (to another Clearing Member)

All external position transfers are immediate and can optionally carry a cash amount. When transferring a position, Members have the choice to adjust the position transfer price and/ or to transfer a cash amount. 
External position transfers in futures or options positions, where the premium is settled futures-style, are executed with the previous day’s settlement price (irrespective of whether the transferred positions result from transactions of the previous business day or the current business day). 
External position transfers in premium-style options positions are executed @ 0.
External position transfers for newly created series are rejected by the system. A transfer can be initiated via a give-up/take-up transaction instead. 
Exercised or assigned positions cannot be transferred. 

Processing of external position transfers

External position transfers require the approval/acceptance of the initiating and receiving Member, as well as their respective Clearing Members. As long as the position transfer has not been approved by all relevant parties, the transfer remains pending until the end-of-day processing or until the request is cancelled by the initiator or rejected/denied by one of the related parties.

Exercise and assignment

We provide our Clearing Members with straightforward exercise and assignment features.

Exercise

The holder of a long option position may exercise his or her right to demand

  • The delivery / sale receipt of the underlying against payment (Equity Options)
  • The opening of a short / long position in the underlying futures (Options on Futures)
  • The receipt of cash (Index Options)

American-style options can be exercised on each trading day. European-style options can only be exercised on the last trading day.

Automatic exercise facility
Open long standard as well as flexible option positions may be automatically exercised on expiration day. Open positions are automatically exercised when the defined minimum in-the-money-amount is met. A default minimum in-the-money amount is defined for all Eurex options.

Member may individually maintain the in-the-money amount or exclude individual positions from automatic exercise by using the abandon functionality of the Exercise Overview window.

Assignment

The holder of a short option position may be assigned to fulfil their obligation

  • To buy / sell shares of the underlying equity on any business day (Equity Options)
  • To take a short / long position in the underlying future contract (Options on Futures)
  • To settle in cash (Index Options)

Eurex Clearing uses a random procedure to assign exercise notices to the accounts maintained by each Clearing Member of the members. Assignment are legally binding.

Transaction separation

Members may split one transaction into several smaller ones via transaction separation. Technically, the number of splits is unlimited, functionally the amount of splits is naturally limited by the transaction quantity.

Members can perform transaction separations on transactions as long as the transaction duration has not expired (i.e. on T=trade date, T+1, T+2 and T+3).

Open/close adjustments

We help members to rectify erroneous open/close transaction designations. That is why Members can perform

  • Transaction open/close adjustments:
    Change incorrect open/close designations during transaction duration.
  • Position open/close adjustments:
    Carrying out a position open/close adjustment increases/reduces the open long and short position equally.

Zero cost quantity (ZCQ)

A distinction is made between cost-free and fee-liable position closing adjustments.

  • Cost free position closing adjustments:
         - Close out of option positions (with the exceptions of options on futures)
         - Close out of futures and options on futures within the zero cost quantity range
  • Fee liable position closing adjustments:
         - Futures and future based options exceeding the zero cost quantity

Simplified Outsourcing

Eurex Clearing offers simplified outsourcing of back office functions via FIXML and via the C7 Derivatives Clearing GUI.

The simplified outsourcing mechanism is exclusively available for Clearing Members (CMs) insourcing back-office functions of their Disclosed Clients (DCs) and DC Market Participants. A user on the Clearing Member side can log into the GUI using his own Member ID/User ID and is allowed to initiate requests for transaction or position management out of the DC Market Participants position account.

In order to apply for simplified outsourcing, the Announcement of Outsourcing of Back-Office Functions of Eurex Clearing DC Market Participants can be requested via the respective forms.






Average pricing

Merge

The average pricing service allows the merging of multiple transactions into one transaction with an average price calculated by Eurex Clearing. The price of the average price transaction is determined using a volume-weighted calculation and is rounded to seven digits. A residual amount representing the difference in cash flows can result from the calculation/rounding.

The creation of average priced transactions is available:

  • for transactions with the same trade date for transactions of the same instrument, account and equal side (buy/sell)
  • for transactions "to open"
  • for either on-exchange or bi-lateral off book, or multi-lateral off-book, i.e. off-book transactions can only be merged with other off-book transactions of the same bi-/multilateral type
  • for transactions that are adjustable, i.e. the transaction duration has not expired and they are not part of pending workflow
  • if transactions are not part of a previous average price merge

Average pricing is not available for:

  • Cooperation products (Eurex/KRX cooperation)
  • Transactions with preliminary price

The merged transaction will be available for transaction management (e.g. trade separation, give-up/take-up) but cannot be part of another merge.

De-merge

Average priced transactions can be de-merged, i.e. the original transactions can be re-established. The following conditions must be met for an average priced transaction to be available for de-merge:

When transferring a position, Members have the choice to adjust the position transfer price and/or to transfer a cash amount.

  • transaction must be adjustable and is not part of a pending workflow
  • transaction must be booked to open
  • transaction must be booked to the member and account in which in which the average price merge took place

Product clearing phases

Transactions are adjustable for a limited period of time, known as the transaction duration. During the transaction duration, adjustments are possible depending on the product phase in which the product is at that time. The following product phases are differentiated by the C7 system: 

Clearing Phase 
In the Clearing Phase, all clearing activities are allowed. 

No Position Move Phase 
This product phase allows all clearing activities, but restrict the transfer of quantity to other participants via Give-up or External Position Transfer. Internal Position Transfers and Transaction Account Transfer are allowed (including the Transaction Account Transfer from the Clearing Member to one of the RC). 

No Settlement Phase 
This product phase allows all clearing activities, but Exercise, Abandonment from Automatic Exercise or Notifications are not allowed. 

Restricted Access Phase 
When a product is in the phase Restricted Access, position and transaction management is not possible.

Please note that on the last trading day for some products different timings for the front month may apply. These different front month timings as well as intraday changes to the schedules are not covered in the CSV file. Time is given in CET/CEST in the CSV file.