Eu rex Circular 074/18 Ch anges in the Liquidity Provider Schemes of se lected products Summary The Management Boards of Eurex Frankfurt AG and Eurex Deutschland took, in accordance with Eurex Clearing AG, the following decision with Date: 5 October 2018 effect from 5 November 2018: Recipients: • Changes in the Liquidity Provider Schemes of eleven equity All Trading Participants of Eurex options, one equity index option and one Single Stock Future Deutschland and Vendors Attachments: Authorized by: Michael Peters • Updated versions of the respective Product Specific Supplements of Target group: - Equity Options • All departments - Equity Index Options on EURO STOXX Select Dividend 30 Index Contact: - Single Stock Futures Derivatives Trading Operations, T +49-69-211-1 12 10, [email protected] Eurex Deutschland Internet: Management Board: Börsenplatz 4 www.eurexchange.com Thomas Book, Erik Tim Müller, 60313 Frankfurt/Main Michael Peters, Randolf Roth Mailing address: 60485 Frankfurt/Main ARBN: 101 013 361 Germany Changes in the Liquidity Provider Schemes of selected products A. Equity options With effect from 5 November 2018, the following changes will be made in the Liquidity Provider Scheme for the equity options specified below: Type of Option on Product ID Old parameters New parameters change Adyen NV ADY Spread Class 2 Spread Class 18 Basilea BSLN Spread Class 7 Spread Class 9 Partners Grp PGHN Spread Class 9 Spread Class 10 Spread Class Teleperformance S.A. RCF Spread Class 7 Spread Class 18 Sartorius AG VZ SRT3 Spread Class 7 Spread Class 10 Linde AG LIN Spread Class 3 Spread Class 8 Dassault Systems DYS1 Spread Class 2 Spread Class 9 Saipem SPEB 200 20 Quote Size Kering PPX 10 5 Number of Intesa Sanpaolo SPA IES5 6 expirations 7 expirations expirations Package Not in the OSTK-CH Included in the OSTK-CH Sika SIK change package package B. Equity index options With effect from 5 November 2018, the following changes will be made in the Liquidity Provider Scheme for equity index options on the EURO STOXX Select Dividend 30 Index: Type of Option on index Product ID Old parameters New parameters change New Spread Euro STOXX SEL. DIV. 30 OEDV See OEDV (old) See OEDV (new) Class Spread Class Bid up to Maximum spread Unit OEDV (old) 5.3 0.8 Index points 53.3 15% Percent 8 Index points Spread Class Bid up to Maximum spread Unit OEDV (new) 5.3 1.1 Index points 53.3 20% Percent 10.7 Index points Eurex Circular 074/18 Page 2 of 3 C. Single Stock Futures With effect from 5 November 2018, the following changes will be made in the Liquidity Provider Scheme for Single Stock Futures: Type of Single Stock Future on Product ID Old parameter New parameter change Quote Size Exor NV IILG 25 10 If you have any questions or need further information, please contact Derivatives Trading Operations via tel. + 49-69-211-1 12 10 or send an e-mail to: [email protected]. 5 October 2018 Eurex Circular 074/18 Page 3 of 3 Liquidity Provider SchemeProduct Specific Supplement for Equity Options Validity: 5th November 2018 - until further notice Contact: Miroslav Budimir, Market Models, T +49-69-211-1 34 41, [email protected] Preamble This Product Specific Supplement for Equity Options (hereinafter referred to as “Product Specific Supplement”) forms an integral part of the Liquidity Provider Agreement (LPA). For the avoidance of doubt, Sec. 1 of the LPA applies. As of 1 January 2018 Ffive Liquidity Provider schemes for Equity Options arewill be offered. with unlimited term. 1. Applicable Building Blocks for Equity Options Pursuant to Sec. 2.3 of the General Supplement to the LPA, the granting of rebates and the concrete rebate levels to be applied on the respective transaction fees are dependent on the fulfilment of Building Blocks. For this Product Specific Supplement, the following Building Blocks are applicable: Basis Package Strategy Larger Tighter Stress Revenue Scheme Product Scope Size Spread Presence Sharing BBB PBB CBB LBB TBB SBB All Equity Options in Packages and Package P P P* P P P** selected Equity Index Options All other American Non- Style Equity Options P P* P P P** Package excl. Weekly and Basket Options All European Style European P P** Equity Options All Equity Options with Weekly P P P P** Weekly Expirations All Equity Options on Baskets P P P P** Baskets * Strategy Block is available for all Equity and Equity Index Options in Liquidity Classes 1 and 2 ** The Stress Presence Block applies to all equity options and equity index options with MMO-flag (see section 2.3.6 of the General Supplement to the LPA) The requirements for Strategy Block, Larger Size Block, Tighter Spread Block and Stress Presence Block are product group specific and can be found in section 2.3 of the General Supplement to the LPA. 2. Liquidity Provider Rebates Upon fulfilment of the Building Block requirements of one product, Liquidity Providers shall receive a fee rebate as specified in section 3 of the General Supplement to the LPA in accordance with the table below. The evaluation takes place on a monthly basis. Upon fulfilment of Execution type Building Block requirements Basis Package Strategy According to Eurex Order book Larger Size Clearing Price List Tighter Spread Stress Presence Total Basis Package According to Eurex Off-book* Clearing Price List Strategy Total *Only off-book block and multilateral transactions are eligible for off-book rebates for Liquidity Provisioning. 3. Building Block Requirements 3.1 Basis Block Requirements In order to receive the Liquidity Provider rebates pursuant to Sec. 2 above, the following quotation requirements shall apply to all products individually: Package Non-Package European Weekly Baskets Products: See section 4.2 According to contract specification Quotation Period: 09:00 – 17:30 CET (09:00 – 17:20 CET for Swiss Equity Options) Required 85% Coverage: 5 out of 9 for components of package “RU” Strike Price 5 out of 7 for components 5 out of 7 Window: of packages “IE” and “UK” 7 out of 15 for all other package components Response to Quote requests have to be answered in accordance with section 2.3.1 of the General Supplement Quote Requests: to the LPA See quotation parameters Maturity Range: table below (cp. Section See link in Section 4.2 4.2) See quotation parameters Minimum Quote table below (cp. Section See link in Section 4.2 Size: 4.2) See quotation parameters Maximum Spread: table below (cp. Section See link in Section 4.2 4.2) 3.2 Package Block Requirements In order to receive the Liquidity Provider rebates pursuant to Sec. 2 above, the following quotation requirements shall apply to packages of products: Package Constituents with Number of Monthly Scheme Package ID Compulsory Fulfilment Exceptions Belgian BE 2 EURO STOXX® 50 ESX50 OESX 9 Dutch NL 6 French FR 20 German DE ODAX 14 Italian IT 2 Irish IE 6 Russian RU 2 Scandinavian SC 1 Spanish ES 1 Swiss CH OSMI or OSLI 8 British UK 12 3.3 Corporate Actions In the case of a spin-off, where a basket option is created from the former product, the following applies: - The basket will have the same Building Block requirements as the former product (except for PBB), becoming effective the date of the listing of the basket. - If the former product was part of a package, the basket will replace the former product in the package, effective the first day of the next calendar month. - Upon re-listing of the former product, the re-listed product will have the same LP requirements as the former product (except for PBB), becoming effective the date of the re-listing of the former product. - If the former product was part of a package, the re-listed product will replace the former product or the basket in the package, effective the first day of the next calendar month. 4. Quotation Requirements 4.1 Available Spread Classes The following spread classes are available for equity options and selected equity index options: Spread Maximum Spread Maximum Bid up to Unit Bid up to Unit Class Spread Class Spread 1.0 0.1 Tick 75.0 15 Tick OSTK 1 5.0 10% Percent OSTK 13 300.0 20% Percent 0.5 Tick 60 Tick 1.5 0.15 Tick 1.0 0.15 Tick OSTK 2 15.0 10% Percent OSTK 14 5.0 15% Percent 1.5 Tick 0.75 Tick 2.0 0.2 Tick 1.5 0.25 Tick OSTK 3 20.0 10% Percent OSTK 15 15.0 15% Percent 2 Tick 2.25 Tick 5.0 0.5 Tick 2.0 0.3 Tick OSTK 4 50.0 10% Percent OSTK 16 20.0 15% Percent 5 Tick 3 Tick 20.0 2 Tick 5.0 0.75 Tick OSTK 5 200.0 10% Percent OSTK 17 50.0 15% Percent 20 Tick 7.5 Tick 1.0 0.2 Tick 20.0 3 Tick OSTK 6 5.0 20% Percent OSTK 18 200.0 15% Percent 1 Tick 30 Tick 1.5 0.3 Tick 1.0 0.15 Tick OSTK 7 15.0 20% Percent OSTK 19 15.0 15% Percent 3 Tick 2.25 Tick 2.0 0.4 Tick 1.0 0.2 Tick OSTK 8 20.0 20% Percent OSTK 20 15.0 20% Percent 4 Tick 3 Tick 5.0 1 Tick 25.0 2 Tick OSTK 9 50.0 20% Percent ODAX 300.0 8% Percent 10 Tick 24 Tick 20.0 4 Tick 35.0 3.5 Tick OSTK 10 200.0 20% Percent OSMI 500.0 10% Percent 40 Tick 50 Tick 40.0 8 Tick 5.3 0.8 Tick OSTK 11 75.0 20% Percent OSLI 53.3 15% Percent 15 Tick 8 Tick 40.0 8 Tick 15.0 1.2 Tick OSTK 12 200.0 20% Percent OESX 225.0 8% Percent 40 Tick 18 Tick For the last two expirations in the maturity range, the maximum spread is increased to two times the maximum spread as outlined in above table for permanent quotation as well as for response to quote requests for all options with an expiry scope of 6 or more expirations.