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X_TRADER®

Eurex Wholesale Trades

You are viewing X_TRADER Version 7.17 and higher. For earlier versions, click here

You can use the Wholesale Order window to submit the following types of orders to Eurex:

  • Block Trades: high volume trades in any outright or strategy product.
  • Vola Trades: an OTC trade separately agreed to by both parties and approved by Eurex. This trade requires you to perform an options trade and hedge it with a futures trade.
  • Exchange for Physical: an OTC trade which exchanges an OTC derivative product for an exchange-traded derivative.
  • Exchange for Swap: a strategy where the position in the underlying is traded for a futures position.
  • Cross Trades: occurs when a user buys and sells the same contract simultaneously. Cross trades are treated as OTC trades when submitted via the X_TRADER 7.17 Wholesale Orders window connected to a TT Gateway 7.17 or higher.

The fields in the Wholesale Order window vary depending on the type of product or strategy you trade. If the product is a strategy, the associated legs for that strategy are listed in the appropriate fields in Wholesale Order window. However, leg prices will not be displayed for Eurex spreads and strategies.

Note: For information on submitting a wholesale trade on a strategy, refer to “Strategy Wholesale Trades” on page 48.

Submitting Wholesale Trades on Eurex

To submit a wholesale trade on Eurex:

  1. Open the product you wish to trade in a Market Grid window.
  2. In the Market Grid, right-click the row containing the product and select Wholesale Orders from the context menu.

    Note: The Wholesale Orders options are grayed-out if:

    • Your administrator has not enabled wholesale trades in TT User Setup.
    • The product/exchange does not support wholesale trades.
  3. Verify that Block is selected in the Order Types pane and set the quantity and price for the Block trade.
  4. Complete the exchange-specific fields as listed below.

The table below lists the common fields for submitting wholesale trades on Eurex.

Wholesale Trades on Eurex

X_TRADER Field

Values/Examples

Description

Customer

A drop-down list of available Customers.

Only customers selected in the X_TRADER Customer Defaults window appear in the Customer field list.

This is an optional field.

When a customer selection is made, the Account Number field is populated with the customer’s account number.

Note: Any changes to customer defaults (e.g., select another customer) requires a relaunch of the Wholesale Order window to pick up the most recent changes.

Account Number

Free-form text up to 14 characters.

Sets the Customer Account Number.

Account Type

A1-A9 (Agent)

G1 (Pre-designated Give-Up)

G2 (Designated Giveup)

P1-P2 (Proprietary)

M1-M2 (Market Maker)

Sets the type of account the trade will be submitted.

If set to Giveup (e.g., G2), the user must populate the Giveup field with the take-up member ID.

Open/Close

Open

Close

Sets whether the trade opens or closes the traders’ positions.

Counterparty

TTGXVTRD

Sets exchange member ID for the other party of the trade.

Giveup

TRAXV

Sets exchange member ID of the Giveup firm. This field is mandatory when Account Type equals G2.

The following figure shows a Eurex Block trade using the Common Wholesale Trade Fields:

This figure shows a Eurex Block trade with a Give Up account using the Common Wholesale Trade Fields:

Additional Fields for Vola Trades

To submit Vola trades, you must first complete the fields listed in Common Wholesale Trade Fields for Eurex. In addition, you must complete the Order Details section as listed below.

Additional Fields for Vola Trades

X_TRADER Field

Description

Options Transaction ID

The transaction number of the corresponding options trade.

Options Quantity

The quantity of the corresponding options trade.

Counterparty

Sets exchange member ID for the other party of the trade.

Buy/Sell

Sets your side of the trade: Buy or Sell.

The following is an example of a Eurex Vola trade:

Additional Fields for Exchange for Physical (EFP) Index Trades

To submit Exchange for Physical (EFP) Index trades, you must first complete the fields listed in Common Wholesale Trade Fields for Eurex. In addition, you must complete the Order Details section as listed below.

Additional Fields for Exchange for Physical Index Trades

X_TRADER Field

Description

SI

Sets the settlement institution for the trade.

This value must be provided for both the Buy and Sell sides of the trade.

Reference ID

Set the unique, 12 alphanumeric value used to identify the equity cash basket linked to the transaction.

Note: The first two characters of the Reference ID must be letters.

Counterparty

Sets exchange member ID for the other party of the trade.

Nominal Amount

Sets the equivalent value of the futures leg to be traded. This value must be represented in units of one thousand.

Buy/Sell

Sets your side of the trade: Buy or Sell.

The following is an example of a EFP Index trade:

Exchange for Physical Index “Trade at Index Close”

If your EFP trade qualifies as “Trade at Index Close,” (i.e., you agree to an equity index futures transaction where the price is set on the basis of the next available official closing price of the underlying index plus basis) you can enter the transaction via the Wholesale Order window. Enter the EFP Index trade fields as well as the additional fields listed below.

Additional Fields for Exchange for Physical Index “Trade at Index Close”

X_TRADER Field

Description

Reference ID

(Trade at Index Close)

If submitting a Trade at Index Close order, set this field to “TAIC”.

FFT2

Sets the MIOrdNo exchange field, which indicates the amount, or basis, added to the settlement price of the underlying index at close. For example, if 9930.5 is the settlement price and FFT2 is set to 2.20, the TAIC price is 9932.7.

The following is an example of a EFP Index “Trade at Index Close” trade:

Additional Fields for Exchange for Physical (EFP) Fixed Income Trades

To submit Exchange for Physical Fixed Income trades, you must first complete the fields listed in Common Wholesale Trade Fields for Eurex. In addition, you must complete the Order Details section as listed below.

Additional Fields for Exchange for Physical Fixed Income Trades

X_TRADER Field

Description

Counterparty

Sets exchange member ID for the other party of the trade.

ISIN

Set the unique, 12 alphanumeric value used to identify the equity cash basket linked to the transaction.

Note: The first two characters of the Reference ID must be letters.

Nominal Amount

Sets the equivalent value of the futures leg to be traded. This value must be represented in units of one thousand.

Settlement Date

The date by which the buyer must pay for the securities delivered by the seller.

SI

Sets the settlement institution for the trade.

This value must be provided for both the Buy and Sell sides of the trade.

CouponThe interest rate of the fixed income instrument.

Coupon Frequency

The number of interest payments per year. Select one of the following: Annually, Semi Annually, Quarterly, Monthly.

Maturity

The date that the fixed income instrument matures.

Issuer

The entity responsible for the obligation of the issue (optional field).

Cash Price

The price of the fixed income instrument.

Currency

The currency of the instrument being traded (optional field).

Hedge Type

The hedging strategy for your side of the trade:
  • Duration Hedge
  • Nominal Hedge
  • Price Factor Hedge

Buy/Sell

Select your side of the trade: Buy or Sell.

Selecting a Settlement Institution (SI) and Accepting an EFP Trade

When you are notified by the counterparty that they have submitted a wholesale EFP Index or EFP Fixed Income buy order, you can submit the corresponding sell order and accept the trade in the X_TRADER Orders and Fills Window or Order Book. As part of submitting the sell side of an EFP order and accepting the trade, you must select the Settlement Institution (SI) responsible for clearing the transaction.

To select an SI and accept an EFP Trade:

  1. Right click in the Order Pane and select Inquire Block & Vola Orders from the context window.

    The Inquire Block and Vola Order window appears.

    Note: If you are sharing an order book with a user submitting an EFP buy order, the buy order will appear in the Order Pane. To inquire the exchange for the sell order, select the buy order and right-click to open Inquire Block & Vola Orders or click the Inquire button on the Order Toolbar. The buy order's SI value is populated in the Accept button list box while the button is disabled.

  2. Enter the order number provided to you by the counterparty, select a TT Gateway, and click Inquire.

    The corresponding EFP sell order appears in the Order Pane.

    Only the Order Number and Exchange (Exchange-flavor TT Gateway) fields are required. The TT Gateway you’re logged in to will ignore the Restriction and Product Type fields.

  3. Select the sell order and click the dropdown list next to the Accept button on the Order Toolbar.

  4. Select a Settlement Institution (SI) code. Valid values are:
    • BC -- Clearstream Banking Frankfurt
    • CD -- Clearstream Banking Luxemburg
    • EC -- Euroclear
    • SG -- Sega InterSettle
    • CS -- CLS Group
  5. Click Accept.

Additional Fields for Exchange for Swaps (EFS)

To submit EFS trades, you must first complete the fields listed in Common Wholesale Trade Fields for Eurex. In addition, you must complete the Order Details section as listed below.

Additional Fields for Exchange for Swaps Trades

X_TRADER Field

Description

Customer1

This field is optional for the buyer and displays only for the seller. The identification of the first customer involved in the EFS swap trade has to be entered.

Customer2

This field is optional for the buyer and displays only for the seller. The identification of the second customer involved in the EFS swap trade has to be entered.

Nominal Amount

Sets the equivalent value of the futures leg to be traded. This value must be represented in units of one thousand.

CouponThe interest rate of the fixed income instrument.

Coupon Frequency

This field is mandatory for the buyer and displays only for the seller. The fixed leg coupon frequency of the swap has to be entered. Enter the number of interest payments per year by selecting one of the following: Annually, Semi Annually, Quarterly, Monthly.

Variable Rate Reference

This field is optional for the buyer and displays only for the seller. The variable rate reference can be up to 12 characters.

Variable Rate Offset

This field is optional for the buyer and displays only for the seller. Enter a numeric variable rate offset value greater than or equal to -99.9999 and less than or equal to 99.9999.

Settlement Date

This field is mandatory for the buyer and displays only for the seller. The settlement date of the swap trade has to be entered. The value has to be greater than the current business date.

Start Date

This field is mandatory for the buyer and displays only for the seller. The start date of the swap has to be entered. Its value must be greater than or equal to the settlement date. Enter the date in the format: DD.MM.YYYY or MM/DD/YYYY

End Date

This field is mandatory for the buyer and displays only for the seller. The end date of the swap has to be entered. Its value must be greater than or equal to the start date. Enter the date in the format: DD.MM.YYYY or MM/DD/YYYY

Currency

The currency (EUR, CHF) of the instrument being traded.

Buy/Sell

Select your side of the trade: Buy or Sell.

The following figures show an example of an EFS trade. This first figure shows the Customer1, Customer2, Nominal Amount, Counterparty, Coupon, Variable Rate Reference, and Coupon Frequency fields in the Order Details section:

The next figure shows the Variable Rate Offset, Settlement Date, Start Date, End Date, Currency, and Buy/Sell fields in the Order Details section for the same EFS trade:

Submitting Eurex Cross Trades

The following figure shows the fields used for submitting a Cross Trade:

To submit a Eurex Cross Trade:

  1. Open the product you wish to trade in a Market Grid window.
  2. In the Market Grid, right-click the row containing the product and select Wholesale Orders from the context menu.

    Note: The Wholesale Orders options is grayed-out if:

    • Your administrator has not enabled wholesale trades in TT User Setup.
    • The product/exchange does not support wholesale trades.
  3. Select Cross in the Order Types pane and set the quantity and price for the trade.
  4. Complete the remaining fields for both sides of the trade as listed below Eurex Cross Trades

    X_TRADER Field

    Value(s)

    Description

    Account Type

    A1-A9 Agent Accounts (Clients only)

    G1 Pre-designated Giveup (without Member ID for receiving Clearing Member)

    G2 Designated Giveup (with Member ID of receiving Clearing Member)

    P1,P2 Proprietary (Own account)

    M1,M2 Market Maker (Quotes)

    Sets the type of account the trade will be submitted.

    Open/Close

    Open

    Close

    Sets whether the trade opens or closes a position.

    GiveUp

    Customer specific information

    Sets the customer account number, firm name, etc., that the trade is being given up to.

    FFT2

    Customer specific information

    Sets the customer specific information.

    FFT3

    Customer specific information

    Sets the customer specific information.

  5. Once the fields are complete, press the Send ITX (Intention to cross) button.

    Eurex mandates that members send an "Intention to cross" message prior to performing a cross trade. This message is broadcast to all market participants. Users have the ability to always send the ITX automatically prior to cross.�