Proactively Controlling Risk

Our motivation behind developing ground breaking pre-trade risk controls is closely tied to the growing trend of direct market access and the potential risk arising from algorithmic trading tools. Eurex Clearing is a pioneer in introducing system features that help proactively safeguard the marketplace. We provide our Clearing Members with a set of tools that help them better control order flow for specific products and accounts.

These risk controls are part of our ongoing commitment to safeguarding the marketplace:

Risk-based Margining

Since November 2007, both, Clearing Members and Non-Clearing Members have these breakthrough tools at their disposal to monitor and control trading behavior. Learn more.

Maximum Order Quantity

Besides the already available maximum order quantities (On-Exchange, Futures Spread, Wholesale/OTC) with Eurex Release 10.0 (November 2007), we enabled our Clearing Members to define maximum order sizes per Non-Clearing Member on a product level.

Order Limits Per Time Interval

Members can specify how many orders and/or how many lots can be submitted during a set time period during a trading day:

• A Clearing Member defines this limit for a Non-Clearing Member per account and product.
• A Non-Clearing Member defines this limit per trader subgroup and product.

Learn more.

Working Order Limits

They can also stipulate how many orders can be in the order book at one time:

• A Clearing Member defines this limit for a Non-Clearing Member per account and product.
• A Non-Clearing Member defines this limit per trader subgroup and product.

Learn more.

Stop Button for Clearing Members

In addition to Pre-Trade Risk Measures, we also introduced a stop button that our Clearing Members can use to react in emergency situations. This stop button disconnects the Non-Clearing Member in question from the Eurex derivatives marketplace so that the Member in question's current open position is frozen and no additional orders can be entered.

Learn more.