Eurex: Tick Size Change for FESX Outright Futures Contracts
Eurex is increasing the minimum price change (tick) in outright contracts in EURO STOXX 50 Index Futures (FESX) with effect from March 21, 2022.
The new tick will be 1.0 index points (currently 0.5 index points).
The tick value will increase from EUR 5 to EUR 10.
All orders and quotes in product FESX will be deleted on March 18 after the close of trading, and, where required, have to be re-entered into the order book.
The tick size for FESX Futures Calendar Spreads will remain at .25 and the tick value for FESX Futures Calendar Spreads will remain at EUR 2.50.
UPDATE: Nasdaq: Nordic Equity Derivatives Trading Replatform
Nasdaq has delayed this migration to March 28th.
High level details on this initiative from the exchange:
Nasdaq is migrating our Nordic Equity Derivatives markets, currently on the Genium INET platform, to a new Global Derivatives Trading System based on INET technology that leverages our Nasdaq Financial Framework (NFF). This Nasdaq next-generation platform is a solution based on global financial standards, for stable, flexible and high-speed services. The new framework with its powerful core technology and standardized access to Nordic liquidity, will in the coming years be the common technical platform utilized across all Nasdaq’s U.S. and European markets and asset classes.
The migration of equity derivatives to the new trading platform is scheduled for implementation on March 28, 2022. Please note that equity derivatives will continue to be cleared in Genium INET after the trading re-platform.
Additional details may be found here.
- March 26: Production Verification (Login Test)
- March 28: Launch of the new platform for Equity Derivatives trading
Market-Wide Acceptance Testing
Nasdaq has communicated the following with regard to testing in the Pre-Production environment prior to the launch on March 28:
To prepare for production launch, two Market Wide Acceptance Tests (with backup dates) will be arranged in the NDTS Pre-Production environment in January. It is mandatory to participate in at least one of the MWATs:
- Completed – MWAT Registration: January 7
- Completed – MWAT 1: Saturday January 22 (10:30-13:00 CET)
- TT successfully participated in this test
TT Platform Impact
TT will support this upgrade, and will support NASDAQ’s FIX API for order entry. Note that Nordic Equity Derivative products will be moving off of TT’s NDAQ_EU market to a new market, Nasdaq_NED. Commodity Derivative products will continue to be available on NDAQ_EU.
The new Nasdaq_NED market is now available for testing in UAT. Customers should provision FIX order routing credentials for UAT access in the exchange NTF Simulation environment, as well as Production credentials for use in Production. In order to request credentials, customers must provide the exchange with TT’s source IP addresses which are as follows:
- UAT = 10.215.197.48/28
- Production (London – Primary) = 10.215.83.0/27
- Production (Frankfurt – Secondary) = 10.215.197.0/27
Additional details on this migration, including information on new product naming conventions, session configuration, migration weekend planning and more may be found in our Nasdaq_NED Migration Guide.
TTUS: Data Migration
To reduce the manual effort required on the part of customers, TT will perform the following Setup Data Migration tasks on March 18:
- Customers’ User, Account and System details will be migrated automatically from NDAQ_EU to Nasdaq_NED
- After the Setup Data Migration is complete, Setup details that were saved for NDAQ_EU will remain in place on NDAQ_EU but will also be duplicated on Nasdaq_NED
- It is highly recommended that customers use the period of time between Setup Data Migration and Go-Live to carefully review their settings and make any changes deemed necessary for production.
- After March 18, any changes made to NDAQ_EU Commodities settings should be also changed for NASDAQ_NED as there will not be another synchronization.
The following Setup data will be migrated automatically during the Setup Data Migration:
- Product and Product Family Risk Limits
- NOTE: Only Product and Product Family limits will be migrated automatically; Instrument/Contract limits will need to be migrated manually.
- NASDAQ_NED limits entered before March 18 may get overwritten or removed during migration.
- Order Tag Defaults
- FIX Sessions and FIX Rules
- Market Data Permissions / Product Groups
After March 18, customers must check this data in TTUS to ensure accuracy for the launch on March 28.
TT Clients who currently access Nordic Equity Derivatives via TT FIX are strongly encouraged to integration test their market data, order routing and/or drop copy applications in TT’s UAT environment as soon as possible.
All FIX servers in both UAT & Production are compatible with NASDAQ_NED. Note that the following values will be changing on NASDAQ_NED for every contract previously available on NDAQ_EU as a result of the exchange-mandated migration:
- Instrument ID
- MIC Code
- Security ID
This link provides a mapping of Nordic Equity Derivatives products from NDAQ_EU to Nasdaq_NED. Note that the Instrument IDs listed are for the UAT environment only. We are working with the exchange to determine when these values will be available for the Production environment.
JPX: JGB Futures Product Specification Changes
JPX has announced a change in the trading specifications of JGB Futures with a launch date of April 4, 2022. For the affected products (5-year JGB Futures, Mini-10-year JGB Futures and 20-year JGB Futures) all related changes are available for testing in UAT now. Please note the following two points for UAT testing: (1) TTW traders testing JGB Futures changes will see incorrect Profit and Loss calculations in the TTW Positions Widget. (2) The updated Product Names will not appear in TTW Widgets or in Product/Instrument downloads of other applications; for now, the old product names will continue to appear. These two issues will be corrected in the coming weeks. These two issues will never impact Production.
TT Platform Impact
There is no impact to users of TT Platform. All users, regardless of interface (TTW, FA, .NET API, REST, etc) can expect an on-time, seamless integration for the specification changes. This announcement of “no impact” extends to all Algos, ASEs, TTW Workspaces, Risk Limits, FIX Applications, SDK Applications, etc.
JPX: Commodity and Energy Futures Product Specification Changes
JPX has announced a change in the trading specifications of the following products with a launch date of April 4, 2022.
- Commodity Futures & Options on Commodity Futures
- Energy Futures & Chukyo Oil Futures
TT Platform Impact
There is no impact to users of TT Platform. All changes for these products occur completely on the exchange side with no impact to any part of the TT software.
HKEX: Derivatives Holiday Trading
HKEX has announced the introduction of Derivatives Holiday Trading with a launch date of April 15 2022. This new exchange initiative will allow all MSCI Futures and Options to be traded on Hong Kong public holidays. Schedules will be adjusted to ensure platform availability during holidays, but other software changes for supporting Holiday Trading are not required.
CME BrokerTec: DR Test
To help ensure readiness and provide an opportunity to test connectivity to DR systems, CME will hold Disaster Recovery (DR) Failover testing for BrokerTec US Markets on May 7, 2022.
This test will provide customers with a chance to test TT production connectivity to BrokerTec’s DR engines and customer gateways.
Customers must register by May 1, and each individual participant that will test must register with the login ID they will use (GFID and GUS) so it can be permissioned for Saturday testing.
The market will open at 9:00am ET and close at 11:00am ET on Saturday, May 7, or sooner should all registered firms complete testing before the scheduled close. The test window may be kept open through 12:00pm ET should any firms require additional time to test.
Euronext: Data Center Migration
From the exchange:
Euronext is planning to migrate its trading chain and colocation services from its current Data Centre in Basildon, UK, to the Aruba Global Cloud Data Centre IT3 in Bergamo, Italy, in Q2 2022. The move is subject to regulatory approval and operational readiness.
- 3 March 2022: Start of technical testing phase to Next EUA platform in Aruba; connectivity testing from London PoPs available
- 4 April 2022: Start of technical testing phase to Euronext DR site
- 7 April 2022: Go-Live of Next EUA environment in Aruba; functional and technical testing available from London PoPs
- 23 April 2022: Dress Rehearsal #1
- 7 May 2022: Dress Rehearsal #2
- 6 June 2022: Go-Live of Aruba DC-IT3 as Primary Data Centre for all Cash & Derivatives markets
TT Platform Impact
We are currently working with our vendors to provision connectivity, and are on target to meet the exchange’s timeline. Additional details will be provided as we approach required testing dates.
Eurex: Next Generation ETD Contracts
End of June 2022
Eurex is aiming to introduce a more flexible set-up of Exchange Traded Derivatives (ETD) products by implementing an enhanced contract identification concept in June 2022 allowing more than one expiration per month on product level (sub-monthly contracts).
New features, changes and improvements:
- Integration of Weekly Expiring Instruments on Product Level
- Volatility Strategies in Single Stock Options
- Market-On-Close Futures T+X (Basis Trading in Equity Index Futures)
Weekly contracts will follow the new format of DDMMYYYY (current format: MMYYY), and will be listed under the same Product symbol as the Monthly contracts.
Example: OEB1, OEB2, OEB3, OEB4 will be listed under the OESB Product Symbol, and will be sequentially integrated.
Monthly Option: OESB Sep22
Sub-monthly Options, Week 1-5): OESB Sep22-W1Fr, OESB Sep22-W2Fr, OESB Sep22-W3Fr, OESB Sep22-W4Fr, OESB Sep22-W5Fr
The sub-monthly contracts will be rolling out in two waves in Simulation.
Wave 1: Activation of sub-monthly expiring contracts, will be available when TT opens UAT for customer testing targeted to April:
- Integration of all weekly expiring contracts in option NOA3
- Daily expiring contracts in SSF AXAP, BAYP, NO3P
- Daily expiring contracts in MSCI Futures FMEA, FMWN
Wave 2: Activation of sub-monthly expiring contracts will be available on the following:
- May DD: Daily expiring contracts in MSCI Futures FMWO, FMJP, FMEF
- May DD+2: Integration of all weekly expiring contracts in option OESX
- May DD+7: Daily expiring contracts in SSF ADSP, BMWP, ROGP, UBSP
The Production Launch will occur over the following:
- July 18th (3rd Friday expiration in July): Activation of daily expiring contracts in all MSCI Futures
- July 25th (4th Friday expiration in July): Activation of integrated weekly and end-of-month expiring contracts in all relevant options including OESX
- August 1: (5th Friday expiration in July): Activation of daily expiring physically settled SSFs supporting delta neutral options trading
Market on Close T+X will be eligible for MSCI Futures. An example is the following:
On T, Client trades the calendar between the daily future (T+1) and the standard future. After the T+1 session, the index close of T+1 is published by MSCI. On T+2, the T+1 index close is entered as the Final Settlement Price for the daily future. At the end, the Client has paid basis + index close for the standard future.
TT plans to implement these changes by the end of Q1, 2022 for customer testing in April 2022.. Go-Live is targeted for the end of June, 2022, with a grace period until the end of November, 2022.
FIA: Execution Source Code Schema Initiative (Tag 1031)
Timeline Varies by Exchange
Multiple exchanges, in cooperation with the FIA Execution Source Code Schema Initiative, are moving forward with plans to implement FIX tag 1031 (CustOrderHandlingInst) on their APIs.
- CME: Tag 1031 is supported and is mandatory.
- ICE: Tag 1031 is supported, but not required.
- Eurex: Tag 1031 is supported, but not required.
- CurveGlobal/IDEM: Tag 1031 is supported, but is not required.
TT Platform Impact
For CME, tag 1031 is now available for use in Production. Customers should select a valid value in Setup or set Order Tag Defaults.
For ICE, tag 1031 is now available for use in Production. Customers should select a valid value in Setup or set Order Tag Defaults to send the value to the exchange. Customers can choose not to select any value as this is an optional field for ICE.
For Eurex, support of tag 1031 on the TT platform is now available. Customers should select a valid value in Setup or set Order Tag Defaults to send the value to the exchange. Customers can choose not to select any value as this is an optional field for Eurex. On the X_TRADER platform, tag 1031 is not currently supported.
For CurveGlobal and IDEM, support for tag 1031 was added on February 3 for both exchanges.