Next Generation ETD Contracts: Postponement of introduction date

1.  Introduction   

In December 2022, few software vendors have provided Next Generation ETD-related patches or upgrades for key software components, which has in some cases delayed end-to-end tests of several Eurex Clearing Members. 

In order to give market participants more time to finalize their tests of modified software components and to conduct additional tests with end clients, the switch to the Next Generation ETD logic will be postponed by a few weeks. Eurex will continue to closely track member and end client readiness and encourages all participants to use the additional time effectively.

Following a short market consultation, the new production start for the new logic and the start of the integration of weekly options contracts will be 27 March 2023. The launch dates for additional two business initiatives will follow shortly thereafter. The new timelines for those will be announced in due course.

New introduction date: 27 March 2023

2.  Required action

Market participants who have not yet finalized all tasks for the launch of Next Generation ETD Contracts are requested to continue with their preparations, considering the new timeline.

3.  Details of the initiative

Since February 2022, Eurex has been offering its full simulation for testing for the Next Generation ETD Contracts. In the course of this project, weekly expiring options contracts will be integrated under the main option Product ID. 

The first integrated weekly options will be introduced on 27 March 2023. The integration of weekly options contracts will continue on 3 April, 11 April and 17 April 2023. For OESX, additional integrated weekly options will be introduced until May 2023.

Moreover, Eurex will launch two additional business initiatives in the course of the NextGen ETD project:

• Daily expiring Single Stock Futures contracts, which will be physically settled and can be used as underlying leg in options volatility strategies in Single Stock Options without any need to trade the cash underlying.
• Daily expiring MSCI Futures contracts (T+0, T+1 and T+2), which, traded as a specific futures calendar spread denoted as MSCI basis spread, where the standard quarterly futures is traded against the daily expiring MSCI futures contract, will allow fully straight-through processed basis trading in MSCI Futures contracts.

Details about the integration of weekly options contracts and the introduction of daily expiring futures contracts will be provided in a separate Eurex Clearing circular.

Please note: To further support testing capabilities, the start of the T7 Release 11.1 and C7 Release 9.1 simulation, originally planned for 29 March 2023, will be postponed until 4 April 2023. The T7 Release 11.0 simulation will be extended until 29 March 2023.

More information about the Next Generation ETD Contracts initiative is provided on the Eurex Clearing website www.eurex.com/ec-en/ under the following link:

Support > Initiatives & Releases > Readiness for projects > Next Generation ETD Contracts.

There you will also find system documentation, circulars, timeline and much more information.

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG, as applicable.

Further information