SGX: Self-Trade Prevention Enhancement
SGX is planning to deploy Titan Service Release 8.5 to production on January 22 for the purpose of enhancing their Self Trade Prevention (STP) functionality. Changes will allow for an additional tier of STP checking at a new “Trading Group” level, while still retaining their existing STP functionality.
TT will fully support Service Release 8.5, and the new versions of TT software that support this feature are now available for testing in UAT and will be deployed to Production during the Jan 22-23 weekend.
Use of SGX Service Release 8.5 features will require no new changes or additional configurations on the TT platform. Messages that are currently in use with existing SGX STP features will continue to be the same after the update.
SGX currently plans to make the new STP Trading Groups effective in production starting from February 8. Customers wishing to make immediate use of Trading Groups in production must email their requests to firstname.lastname@example.org by January 29. If customers wish to test the new feature in UAT, requests for Trading Group setup in the SGX Member Test Environment must be sent to email@example.com.
Trading Group setup request template:
New Self-Trade Protection Trading Group Setup
|Environment:||[Production OR Test-Environment]|
|List of Participant Codes:||e.g. AB123, ZZ999, YY369[If you do not know your Participant Codes, please list the Order-IDs]|
|Prevention Method:||[Cancel Aggressive OR Cancel Passive]|
SGX: Introduction of USD/INR (USD) Month-end Futures
SGX has introduced USD/INR (USD) Month-end Futures with a launch date of January 24, 2022. The Product Code is “INX” and the product will be available for testing in UAT sometime during the week of January 17-21.
Eurex: Direct Market Access (DMA) Flow Validation
Eurex has communicated the following with regard to validation of tag 1724 “OrderOrigination”, effective January 31:
Starting from 31 January 2022, the Eurex T7 system will reject orders, where tag 1724 “OrderOrigination” is set to “true”, i.e. ”5”, but the Exchange Participant is not authorized as DMA Provider with Eurex.
Exchange Participants who currently apply tag 1724 on orders but are not authorized as DMA Providers with Eurex are urged to get in contact with their respective Key Account Manager to trigger the authorization process of their DMA system.
Exchange Participants who are already authorized DMA Providers at Eurex, will automatically be enabled for flagging DMA order flow and are not required to pursue any additional actions.
For further details concerning the DMA-related rules, please refer to the Eurex website under the following path:
Rules & Regs > MiFID II/MiFIR > DEA/DMA/ORS
TT Platform Impact
Prior to January 31, customers that support Direct Electronic Access (DEA) should ensure they are properly authorized with the exchange. For assistance with authorization, please contact the exchange. Customers that do not support DEA on Eurex and/or EEX should ensure they are sending “Direct Electronic Access” = No by configuring Order Tag Defaults or Profiles.
Nasdaq: Nordic Equity Derivatives Trading Replatform
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 February 21, 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.
Market-Wide Acceptance Testing
Nasdaq has communicated the following with regard to testing in the Pre-Production environment prior to the launch on February 22:
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:
- MWAT Registration: January 7
- MWAT 1: Saturday January 22 (10:30-13:00 CET)
- TT will participate in this test
- MWAT 2: Wednesday January 26 (17:30-20:00 CET)
- TT will NOT participate in this test
The detailed schedules for MWAT 1 and MWAT 2 can be found in this exchange IT-Notice.
TT currently plans to participate in the testing on January 22. Customers should contact their Onboarding representative for further details.
TT Platform Impact
TT will support this upgrade, and will support NASDAQ’s FIX API for order entry.
Nasdaq_NED 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 during the mock session. 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
CFE: SenderLocationID field (FIX Tag 142)
CFE has communicated the following with regard to the upcoming requirements for the SenderLocationID field (tag 142):
CFE will begin requiring the ISO 3166 two-character code, identifying the country of origin of an order or quote, be included within all order and quote submissions through CFE order entry protocol. Effective February 27, 2022, the SenderLocationID field (FIX Tag 142) must be populated in the New Order Single FIX message. This field will also be included on all Execution Report FIX messages (i.e. order acknowledgements, cancel acknowledgements, fills, etc.). FIX-formatted drop copies will include the SenderLocationID field (FIX Tag 142) on the effective date.
TT Platform Impact
TT will support the data in the field SenderLocationID (Tag 142) in all the relevant FIX messages starting February 27, 2022. There is no action needed by the users and the system will start sending the value automatically upon go-live by the exchange.The UAT date will be announced once we are close to the implementation date.
Eurex: Next Generation ETD Contracts
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)
TT plans to implement these changes by the end of Q1, 2022 for customer testing. Go-Live is targeted for June, 2022, with a grace period until the end of November, 2022.
More details will be provided in upcoming weeks.
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.