Equity Options at Eurex Exchange - March 2020
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Equity Options at Eurex Exchange March 2020
Equity Options at Eurex Exchange March 2020
Your benefits trading Eurex Equity Options
• Eurex has the largest offer on single names: traded Options, Futures and Dividend
One Stop Shop
products at one exchange 3- 9
Weeklies & Euro- Style • Weeklies on all Eurostoxx50 components and European style options
• Increase your process efficiency
Trading on Eurex
• Your source to liquidity and new pools, build on a proven technology 10
EnLight • Trade option volatility strategies with combination of option and physical settled SSF
Option Volatility • Eurex offers option volatility strategy by offering combined trades of the option and it‘s
11-12
strategies corresponding physical settled single stock futures
Margin Savings • Benefit from netting effects bundling your volume at one platform 13-16
Trade Entry Services & • Trade Entry services are facilitated by a number of brokers
18
Multilateral Trade Reg. • TES trades can be registered by multiple counterparties
Flex Options • Flex Options: Define exercise price, expiration date, exercise style and settlement. 19
• We offer you low fees for client accounts and attractive volume and market making
Lowest Fees 20-21
rebates up to 80% accross all country segments
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Equity Options at Eurex Exchange March 2020
Eurex Exchange Offers a Wide Range of Equity Options
• Eurex market participants are now able to trade more then 800 Equity options on over 500 stocks,
from 13 countries.*
• The range offers access to all the components of the EURO STOXX 50 and STOXX Europe 50
Index, as well as most components in the STOXX Europe 600, STOXX Europe Large 200, STOXX
Europe Mid 200 and STOXX Europe Small 200 indices.
Equity Options Underlying Country Index Components Covered No. of Equity
Currency Options **
CHF Switzerland SMI, SLI, SMIM 91
EUR Germany DAX®, MDAX®, TecDAX® 150
France CAC40 84
Netherlands AEX 38
Italy FTSE MIB 34
Spain IBEX 35 14
Belgium BEL 20 18
Austria ATX, ATX five 24
Finland OMX Helsinki 25 11
Ireland ISEQ 20 7
Sweden OMC Stockholm 30 1
GBP UK FTSE 100 32
USD Russia RDX USD 7
Total 511
* Equity Options are not available for firms trading from the U.S.
** standard American style Equity Options - majority of products also
available with weekly expiry and/or European style exercise
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Equity Options at Eurex Exchange March 2020
Development Single Equity Options 1/2
March 2020 March 2019 YTM 2020
Traded Contracts 18.799.907 17.956.445 59.753.952
Agent 6.492.540 6.377.739 21.836.689
Market Maker 9.701.720 9.199.764 29.027.018
Principal 2.605.648 2.378.942 8.890.245
Open Interest 62.632.870 57.955.887
Average Daily Volume 2019 933.656
Pie charts based on YTM 2019 data
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Equity Options at Eurex Exchange March 2020
Development Single Equity Options 2/2
Country YTM 2020 YTM 2019 % change
Germany 24.077.271 18.579.160 30%
Switzerland 18.325.433 16.075.565 14%
France 7.726.582 7.070.369 9%
Netherlands 3.861.269 3.929.624 -2%
Finland 2.724.845 2.048.583 33%
Spain 1.237.977 1.043.356 19%
Italy 1.144.466 1.737.583 -34%
Belgium 258.544 238.210 9%
Russia 80.573 14.389 460%
Austria 100.021 74.970 33%
Great Britan 40.577 41.031 -1%
Sweden 130.311 331.513 -61%
Ireland 46.083 18.414 150%
Total 59.753.952 51.202.767 17% Pie charts based on YTD 2019 data
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Equity Options at Eurex Exchange March 2020
Equity Options – Country Segments Development
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Equity Options at Eurex Exchange March 2020
Equity Options – Country Segments Development
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Equity Options at Eurex Exchange March 2020
Product Variations – Weekly Options and Europeans
Weekly & European Style Options
• 78 underlying assets for Weekly equity options are available on Eurex: Weekly options expire
every Friday
• Contract specifications are similar to the monthly options
Weekly • Advantages:
Options • Lower premiums
• Implement more targeted strategies, i.e..: tailor strategies around specific market events
• Wider choice of expiry dates
• Short-term investment in the underlying equity
• European Style options are available on 36 underlying assets
• The exercise style is the only difference between the American and European equity options
contract specifications
European • Advantages:
Style • Implement more targeted strategies
Options • Option can only be exercised at the end of it’s life
• Remove uncertainty of executions during the options lifetime
• Cheaper than American options
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Equity Options at Eurex Exchange March 2020
Equity Options with weekly expiries
March 2020 March 2019 YTM 2020
Traded Contracts 72.016 57.169 201.451
Agent 30.883 22.657 89.322
Market Maker 40.877 32.557 109.726
Principal 257 1.955 2.404
Open Interest 14.347 12.480
Average Daily Volume 2019 3.148
Pie charts based on YTM 2019 data
www.eurexchange.com 9Equity Options at Eurex Exchange March 2020
Trading Equity Options on Eurex EnLight
Increase your • Eurex EnLight offers a collated view of all received quotes, implied orderbook prices etc.
process efficiency
• Improve your intelligence capabilities with price formation data
Your source to • Eurex EnLight connects a large number of participants and thereby provides liquidity
liquidity and new
pools • Access to full liquidity information increases speed of accurate price formation
Build on a proven • The platform is accessible via the Eurex GUI or the T7 API
technology • No separate agreements or special setups required
Comply with Best
• Eurex EnLight, as your assistant in terms of MiFID II / MiFIR obligations, offers tools to monitor
Execution
and enforces the firm’s policy
obligations
www.eurexchange.com 10Equity Options at Eurex Exchange March 2020
Option volatility strategies for Single Stock Options
• Trade option volatility strategies with the
combination of option and physical settled
single stock futures with monthly expirations
cycle fully in the Eurex CCP framework
• No bilateral exchange of the cash leg
necessary
• Trade against every Eurex counterparty
without any bilateral counterparty risk
www.eurexchange.com 11Equity Options at Eurex Exchange March 2020
Universe of 61 underlyings for option volatility strategies
www.eurexchange.com 12Equity Options at Eurex Exchange March 2020
Benefit from Margin Efficiencies
• Benefit from netting effects bundling your volume at one platform
• With Eurex Clearing Prisma Portfolio Margining, trading for example the EURO STOXX 50
Bundle your future or Sector & Broadbased futures versus several options of its components, makes you
volume at
benefit from netting effects
one platform
• The same applies to trading different country segments at one platform
• With Eurex Clearing, Europe’s leading clearing house for securities and derivatives
Mitigating transactions, as the central counterparty to all trades, you benefit from mitigated counterparty
risks through risk
CCP clearing
• Eurex Clearing provides effective CCP, risk management and collateral management services
thus improving operational efficiency as well as market safety overall
www.eurexchange.com 13Equity Options at Eurex Exchange March 2020
Mixed Countries (Options) 56%
AAR
33,649 € savings
• Trading Equity Options on one single platform instead of several CAR
58,748 €
platforms can result into large margin savings
• Migrate your French, Dutch, Italian and Spanish Equity Option CSGN
230,540 €
trading to Eurex as a single platform to benefit a maximum of netting
effects
• They will be netted versus other country groups such as German
ALV Portfolio
and Swiss Equity Options as well as our benchmark futures 252,265 € 252,266 €
Single Margins Portfolio Margining
Name Eurex Long Short P/C Exp. Date Exercise Initial Liquidity Margin Portfolio Margin
Price Margin add on Total (in Margin savings
(in EUR) (in EUR) EUR) Total (in
EUR)
Allianz ALV 100 0 C 2016/12/16 100 217,997 34,268 252,265
Credit CSGN 250 0 C 2016/12/16 15 208,219 22,321 230,540
Suisse
252,266 56%
ABN AAR 0 230 C 2016/12/16 20 27,974 5,675 33,649
Amro
Carrefour CAR 0 350 C 2016/12/16 28 45,295 13,453 58,748
www.eurexchange.com 14Equity Options at Eurex Exchange March 2020
FESX vs. Dutch equity options
PHI1 44%
23,460 €
savings
• Especially the Eurostoxx components are very interesting to have on UNI
Eurex in respect to the netting effects you would have against the 24,935 €
futures contract INN
• This example shows the Dutch options where you do not only benefit 28,796 €
from a significantly lower fee at Eurex, but also from a netting effect
FESX Portfolio
118,413 € 108,498 €
Single Margins Portfolio Margining
Name Eurex Long Short P/C Exercise Exp. Date Initial Liquidity Margin Portfolio Margin
Price Margin add on Total (in Margin savings
(in EUR) (in EUR) EUR) Total (in
EUR)
SX5E FESX 50 0 - 2017/03/17 118,057 356 118,413
Index
Future
ING INN 0 100 C 13 2017/03/17 26,325 2,470 28,796
108,498 44%
Philips PHI1 0 100 C 27 2017/03/17 20,643 2,817 23,460
Unilever UNI 0 100 C 37 2017/03/17 23,057 1,878 24,935
*Option Style: American
www.eurexchange.com 15Equity Options at Eurex Exchange March 2020
Automobiles (Italy & France)
PEU 57%
84,586 €
savings
• Trading liquid Equity Options on companies such as Fiat and
Peugeot with Eurex as a single platform results in netting effects FESA
147,495 €
• They will be netted versus versus the liquid Eurostoxx Automobiles
Future (example below)
FIA5 Portfolio
511,309 € 522,627 €
Single Margins Portfolio Margining
Name Eurex Long Short P/C Exp. Date Exercise Initial Liquidity Margin Portfolio Margin
Price Margin add on Total (in Margin savings
(in EUR) (in EUR) EUR) Total (in
EUR)
ES FESA 100 0 - 2016/12/16 - 260,241 17,874 278,115
Autom.&P
Fiat FIA5 900 0 P 2016/12/16 8 535,075 206,703 741,778 522,627 57%
Peugot PEU 800 0 P 2016/12/16 15 158,628 50,897 209,525
www.eurexchange.com 16Equity Options at Eurex Exchange March 2020
Contract Specifications
Contract Size 1, 10, 100, 500, 1,000, 2,500 or 5,000 shares
EUR**/CHF/USD: 0.01
Price Quotation GBP: 0.25 or 0.5
Tick Size **Exceptions - Italian equity options: EUR 0.0005
- Bank of Ireland and Permanent TSB holdings : EUR0.001
Up to 12, 24 and 60 months: The three nearest successive calendar months, the three (for Spanish equity options nine) following
quarterly months of the March, June, September and December cycle thereafter, and the four (for Spanish equity options the nearest)
Contract Months
following semi-annual months of the June and December cycle thereafter, and the two following annual months of the December cycle
thereafter.
The Daily Settlement Price is established by Eurex. The Daily Settlement Prices for equity options are determined through the binomial
Daily Settlement Price model according to Cox/Ross/Rubinstein. If necessary, dividend expectations, current interest rates or other payments are taken into
consideration.
American-style; an option can be exercised until the end of the Post-Trading Full Period (20:00 CET) on any trading day during the
lifetime of the option.
Final Settlement Price
European-style for equity options with group ID DE 14, CH14, FI14, FR14 and NL14; an option can only be exercised on the Last Trading
Day until the end of the Post-Trading Full Period (20:00 CET).European-style Russian equity options: an option can only be exercised on
the Last Trading Day until the end of the Post-Trading Full Period (17:40 CET).
Settlement Physical delivery of underlying shares is two exchange trading days after exercise: t+2
Last Trading Day Third Friday of the respective month, for Italian equity options the day before the third Friday, of each expiration month, if this is an
exchange day; otherwise, the exchange day immediately preceding that day.
Option Premium The premium is payable in full in the currency of the respective contract on the exchange day following the day of the trade.
Orderbook: 09:00 - 17:30 CET; Swiss EO: 09:00 - 17:20 CET; Russian EO: 09:15 - 16:30 CET
Eurex Trade Entry Services: 09:00 - 19:00 CET; Austrian EO: 09:15 - 19:00 CET; UK and Irish EO: 09:00 - 18:30 CET; Russian EO:
Trading Hours 10:00 - 19:00 CET ( 16:30-17:00 CET on the Last Trading Day of Russian EO)
The opening time of 09:00 is considered a reference point. Eurex opens its equity options staggered between 08:50-09:05
The closing time of 17.30 is considered a reference point. Eurex closes its equity options staggered between 17:30-17:36
www.eurexchange.com 17Equity Options at Eurex Exchange March 2020
Eurex Trade Entry Services Offers You Safety…
Participants can enter off-order book trades into the Eurex system, benefiting from the
safety of clearing and settlement as well as the flexibility of off-book trades.
• Members are able to enter bilaterally agreed off-book transactions into the trading and
Eurex Trade clearing system. Registered off-book trades are then automatically cleared like regular
Entry exchange transactions
Services
• The Eurex Trade Entry Services facility is fully electronic and integrated into members’
processes (Minimum number of contracts apply)
Eurex Trade • Block trades reaching or exceeding a certain number of contracts (defined by the exchange)
Entry are optionally not disclosed intraday. Thresholds are published on the Eurex website
Services
• No Extra fee for non-publication
Non-
disclosure • On the following day, reports will contain updated volumes and open interest, including the
facility ones that were not disclosed
www.eurexchange.com 18Equity Options at Eurex Exchange March 2020
… and Flexibility
Participants can enter off-order book trades into the Eurex system, benefiting from the
safety of clearing and settlement as well as the flexibility of off-book trades
• Allows customisation of equity options to suit the participant requirement
Flexible
• Users can define Exercise price, Expiration date, Exercise style and Settlement type
Options
• Flexible contracts are not disclosed intra-day.
• Members can enter an off-book transaction involving multiple counterparties with
Multilateral automated confirmation. Partial trades can be entered which can be assigned to
Trade counterparties.
Registration • Block trade fee caps are applied to all partial trades. Fees apply only up to the fee cap,
providing substantial cost efficiencies
www.eurexchange.com 19Equity Options at Eurex Exchange March 2020
Competitive & Transparent Fee Structure (A-Account)
Trading and clearing covered by one fee
• Up to 80% fee rebates are available, depending on monthly proprietary trading volume, liquidity class and trade type
• Trade Entry Services (TES) fees apply to all transactions executed via the Eurex Block Trade facility and to flexible
options
Product Transaction fees Threshold Exercise fee
Trading Type
currency Fee per lot Reduced fee* Contracts Fee per lot**
Orderbook 0.12 0.06 0.10
EUR Eurex EnLight 0.12 0.06 0.10
(European Equity Options)
TES 0.12 0.06 0.10
Orderbook 0.15 0.08 0,10
EUR Eurex EnLight 0.15 0.08 0.10
(German Equity Options)
TES 0.15 0.08 0.10
Orderbook 0.20 0.10 0.15
CHF Eurex EnLight 0.20 0.10 1,000 0.15
TES 0.20 0.10 0.15
Orderbook 0.17 0.09 0.15
GBP Eurex EnLight 0.17 0.09 0.15
TES 0.17 0.09 0.15
Orderbook 0.17 0.09 0.15
USD Eurex EnLight 0.17 0.09 0.15
TES 0.17 0.09 0.15
*Applies to contracts exceeding the threshold
www.eurexchange.com **No fees are charged for exercise of LEPOs 20Equity Options at Eurex Exchange March 2020
Competitive & Transparent Fee Structure (P/M-Account)
Trading and clearing covered by one fee
• Up to 80% fee rebates are available, depending on monthly proprietary trading volume, liquidity class and trade type
• Trade Entry Services (TES) fees apply to all transactions executed via the Eurex Block Trade facility and to flexible
options
Product Transaction fees Threshold Exercise fee
Trading Type
currency Fee per lot Reduced fee* ** Contracts ** Fee per lot***
Orderbook 0.10 0.05 0.10
EUR Eurex EnLight 0.10 0.05 0.10
(European Equity Options)
TES 0.10 0.05 0.10
Orderbook 0.10 0.05 0,10
EUR Eurex EnLight 0.10 0.05 0.10
(German Equity Options)
TES 0.10 0.05 0.10
Orderbook 0.15 0.08 0.15
CHF Eurex EnLight 0.15 0.08 500 0.15
TES 0.15 0.08 0.15
Orderbook 0.15 0.08 0.15
GBP Eurex EnLight 0.15 0.08 0.15
TES 0.15 0.08 0.15
Orderbook 0.15 0.08 0.15
USD Eurex EnLight 0.15 0.08 0.15
TES 0.15 0.08 0.15
* Applies to contracts exceeding the threshold
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** For P-Account only 21
***No fees are charged for exercise of LEPOsEquity Options at Eurex Exchange March 2020
Further information
• For full equity option product list, contracts specifications and parameters (including Group ID):
http://www.eurexchange.com/exchange-en/products/equ/opt/
https://www.eurexchange.com/resource/blob/4908/b090da8d8a1564e6502e69046ac934de/data/productlist.csv
• Corporate action announcements:
http://www.eurexchange.com/exchange-en/products/equ/corporate-actions
• Eurex EnLight:
https://www.eurexchange.com/exchange-en/resources/initiatives/eurex-enlight
• Market Making :
http://www.eurexchange.com/exchange-en/trading/market-making-and-liquidity-provisioning
• Broker & Market Makers:
http://www.eurexchange.com/exchange-en/resources/participant-list/
• Trading Fees:
http://www.eurexchange.com/exchange-en/trading/transaction-fees
www.eurexchange.com 22Equity Options at Eurex Exchange March 2020
Further information
Contact us
Equity & Index Sales Equity & Index Product Development
Philipp Schultze Nicolae Raulet
Eurex Global Derivatives AG Eurex Frankfurt AG
Theilerstrasse 1a London, Representative Office
6300 Zug 11 Westferry Circus, 2nd Floor, Canary Wharf
Switzerland London E14 4HE
T: +41 43 4 30-71 25 T +44-207-8 62-72 74
philipp.schultze@eurexchange.com nicolae.raulet@eurexchange.com
Eurex Functional Helpdesks Eurex Technical Helpdesk
Trading Clearing Technical
T: +49 69 211-1 12 10 T: +49 69 211-1 12 50 T: +49 69 211-1 12 00
www.eurexchange.com 23Equity Options at Eurex Exchange March 2020
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or used under license from their respective owner. This includes, but is not limited to, registered designs and copyrights as well as trademark and service mark rights. Methods and devices described in this
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dealers with certain eligible Eurex equity options and equity index options pursuant to the terms of the SEC’s July 1, 2013 Class No-Action Relief. A complete, up-to-date list of Eurex options that are eligible
under the SEC Class No-Action Relief is available at: http://www.eurexchange.com/exchange-en/products/eurex-derivatives-us/eurex-options-in-the-us-for-eligible-customers . Lastly, U.S. QIBs and broker-
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the United States (June 8, 2010).
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