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Single Stock Dividend Futures: Modification of the pricing model and fee classification from 1 September 2019 to 31 August 2020

Release date: 16 Aug 2019 | Eurex Clearing

No. 080/2019 Single Stock Dividend Futures: Modification of the pricing model and fee classification from 1 September 2019 to 31 August 2020

Eurex Clearing Circular 080/2019

1.   Introduction

On 1 September 2019, the following measures of Eurex Clearing AG for Single Stock Dividend Futures will come into effect:

A.  Pricing model modification for euro-denominated Single Stock Dividend Futures by increasing the amount of dividend tiers from three to five, as stated in Attachment 2.

B.  Fee classification for each individual Single Stock Dividend Future for the period from 1 September 2019 until 31 August 2020 as outlined in Attachment 3.

2.   Required actions

For your internal readiness, please consider updating the transaction fee levels for Single Stock Dividend Futures in case they are used for any internal calculations. The transaction fee levels can be found in the CB001 report.

3. Details of the initiatives

A.  Pricing model modification for Single Stock Dividend Futures

The pricing model for Single Stock Dividend Futures includes staggered transaction fees, which differ based on the expected dividends for the underlying stock at the reference date. The current structure of three dividend tiers in euro-denominated Single Stock Dividend Futures will be enhanced to five tiers to further support trading by a more granular fee structure in line with the expected dividend level.

The current and new tiers structures are shown in detail in the tables contained in Attachment 1.

As of the effective date, the updated Price List of Eurex Clearing AG will be published on the Eurex Clearing website www.eurexclearing.com under the following link:

The changes and amendments to the legal framework of Eurex Clearing AG published by this circular are deemed accepted by each affected contractual party of Eurex Clearing AG, unless the respective contractual party objects by written notice to Eurex Clearing AG within the first ten (10) Business Days after publication. Any ordinary right of Eurex Clearing AG to terminate the respective contract (including a Clearing Agreement, if applicable) shall remain unaffected.

B.  Fee classification for each individual Single Stock Dividend Future for the period from 1 September 2019 until 31 August 2020

The fee classification for each individual Single Stock Dividend Future for the period from 1 September 2019 until 31 August 2020 is based on the expected dividend amount for the underlying stock in the next calendar year on the reference date (31 July 2019) and is as outlined in Attachment 3.

If a successor product to a Single Stock Dividend Future is admitted to trading due to a corporate action in the underlying stock, the transaction fee level of the preceding product will also apply to the successor product.

Attachments: 

  • Attachment 1 – Overview of current and new tiers structures
  • Attachment 2 – Updated sections of the Price List of Eurex Clearing AG
  • Attachment 3 – Transaction fees for Single Stock Dividend Futures effective from 1 September 2019 until 31 August 2020

Unless the context requires otherwise, terms used and not otherwise defined in this circular shall have the meaning ascribed to them in the Clearing Conditions or FCM Clearing Conditions of Eurex Clearing AG, as applicable.



Recipients:All Clearing Members, FCM Clearing Members, Basic Clearing Members, Disclosed Direct Clients of Eurex Clearing AG, vendors and other affected contractual parties
Target groups:Front Office/Trading, Middle + Back Office
Contact:Eurex Pricing, eurex.pricing@eurexchange.com
Related Eurex Clearing circulars:070/18, 075/17
Web: www.eurexclearing.com
Authorized by:Heike Eckert