Eurex enhances trading, clearing and risk

The international derivatives exchange Eurex launched yesterday its latest software release. Eurex Release 13 provides members with more flexible clearing solutions, new risk management functionalities and comprehensive enhancements in the trading layer, for example a new optional interface and a further optimized matching system.

The risk management features included in Release 13 contribute to European and U.S. regulators’ goals of achieving higher safety and stability of financial markets.

The main components in the clearing and risk management areas are a client asset protection solution and new pre-trade risk management tools.

The client asset protection solution will enable Eurex Clearing users to choose among different segregation levels for their accounts based on individual needs.

Introduction is planned in the first half of 2011. The new real-time pre-trade risk management service called Advanced Risk Protection, which will be launched on 29 November 2010, will enable members to set maximum risk limits for instance based on the total margin requirement or cash flows. Additionally, Eurex’s Wholesale offering has been improved. Eurex customers are now offered enhanced close-out procedures for flexible contracts transactions while the Multilateral Trade Registration facility has been adjusted to make it easier to track and process trades post execution.

The new optional Enhanced Confirmation Solution – to be launched on 17 November – gives members the ability to receive recoverable order, trade and matching event information independent of the current MISS architecture. The new, FIX-compatible interface is based on the same technology as Eurex's existing Enhanced Transaction Solution interface. Other technology advancements include further latency reduction and greater price granularity.

Release 13 is a key milestone in the Eurex Technology Roadmap. Launched in early 2006, the roadmap bundles a variety of components for system optimization: software and hardware upgrades, launches of new offers and services, and the distribution of new, customizable data packages.