Eurex and EEX Wholesale Trades

Blocktrader supports submitting Eurex and EEX wholesale trade types. Note: EEX only supports Block trades.

The following wholesale trades are supported:

• Cross — A trade when a user buys and sells the same contract simultaneously. Cross trades are not processed as OTC trades at Eurex, but are submitted using Blocktrader.
• Block — High volume trade in any outright or strategy product.
• Exchange for Swap — Strategy where a position in the underlying is traded for a futures position.
• Volatility — Eurex volatility trade, which requires you to submit and complete an options Block trade and hedge it with a futures trade. A Vola trade can only be submitted for previously completed block trade.
• Exchange for Physical Fixed Income — OTC trade that exchanges an OTC derivative product for an exchange-traded fixed income derivative.
• Exchange for Physical Index — OTC trade that exchanges an OTC derivative product for an exchange-traded index derivative.

Blocktrader display for Eurex and EEX

Blocktrader consists of the components needed for submitting wholesale trades on Eurex.

The image shows the following:

1. Exchange selector — Lists the exchanges with OTC trade reporting supported on TT®
2. Trade type selector — Lists the OTC trade types supported for the selected exchange.
3. Price — Used for entering a price for the transaction. You can also use the up and down arrows to adjust the price.
4. Quantity field — Used for entering the buy or sell quantity for the trade. You can also use the up and down arrows to adjust the quantity.
5. Deal time selector — Sets the time of the transaction. Click the arrow to set the time to the current time and date.
6. Price off tick — When checked, allows you to enter an off tick price per leg for instruments that support tick sizes smaller than what is displayed.
7. Instrument search — Allows you to search for and select the instrument being traded.
8. Eurex Wholesale Trade fields — Allows you to complete the fields required by the exchange. Fields are displayed based on the trade type.
9. Delayed Publication — When checked, the trade is not published automatically, allowing the user to delay reporting of the trade to the exchange. The duration of the delay is set by the exchange.
10. Confirm Order and Submit — Allows you to confirm the order before submitting. When Confirm Order is checked, clicking confirm will allow the user to check the details of the trade before clicking Submit.
11. Message indicator — Indicates whether the trade was successfully sent to the exchange. Also shows if the order needs to be confirmed before submitting.
12. Order report panel — Displays the status and details of the trade after it's submitted to the exchange. Wholesale trades sent to you are automatically inquired in Blocktrader and appear in the order report panel.

    The Action column displays either a "Cancel" button when submitting a trade, or an "Accept" button when accepting a trade. Actions pending exchange approval appear as "Pending" in this column.

    The State column shows the following states:

    • Approved: The trade has been submitted and accepted by the exchange. This state appears in the order report panel when you submit a Wholesale trade.
    • Received: The trade has been been auto-inquired and is awaiting acceptance by the counterparty.

Submitting Wholesale Trades on Eurex

To submit a Wholesale Trade on Eurex:

1. Open the Blocktrader widget and select Eurex from the exchange selector.
2. Select a Wholesale trade type from the trade type selector.
3. Search for the instrument being traded.

   You can also use the Explorer to find an instrument.

4. Set the price and quantity for the trade.
5. Complete the common fields in Blocktrader for both sides of the trade as needed.

   These fields are common for all supported Eurex wholesale trades unless otherwise noted.

   Complete the additional fields in Blocktrader based on the wholesale trade type selected:

   • Block
   • Exchange for Swap
   • EFP - Exchange for Physical Fixed Income
   • EFP - Exchange for Physical Index Futures
   • Volatility (Vola)
   • Cross
6. Click the Submit button.

   If Confirm order is checked, confirm the order before submitting it to the exchange.

Submitted trades are automatically inquired and approved. In the order report panel, the State column displays "Approved" in the order report panel. If needed, you can click the Cancel button in the Action column.



Note	Cross Trade Status (ITC)
	When submitting a cross trade, ITC status is shown in the Message Indicator prior to clicking Submit.




In the Audit Trail, the Message column shows that the inquire was "Received" and "Approved" automatically. When the counterparty accepts the trade, "Confirmed" and "Completed" are displayed in the Message column in the Audit Trail.

Accepting Wholesale Trades on Eurex

Note: Trades sent to you are automatically inquired and displayed in the Blocktrader order report panel.

To accept a Wholesale Trade on Eurex:

1. Open the Blocktrader widget and select Eurex from the exchange selector.
2. In the Blocktrader order report panel, click the Accept button in the Action column.

   The State column in the order report panel shows a status of Received.

   

   After you click "Accept", the trade is removed from the order report panel and the acceptance is sent to the exchange for approval.

   When the transaction is approved, the exchange sends both sides "Confirmed" and "Completed" messages that are displayed in the Message column in the Audit Trail.

   

Common Wholesale Trade Fields for Eurex

The table below lists the common fields for submitting wholesale trades on Eurex.

Block Trades

To submit Block trades, complete the common fields for Eurex wholesale trades in Blocktrader. There are no additional fields required.

The following figure shows a Eurex Block trade using the common wholesale trade Fields.

Note: Blocks can be entered from the Sell side by toggling the "Buyer" button.

Exchange for Swap (EFS) Trades

To submit Exchange for Swap trades, first complete the Blocktrader fields listed in Common Wholesale Trade Fields for Eurex. In addition, complete the fields provided in the following table.

The following figures show an example of an EFS trade.

Volatility (Vola) Trades

After a Block trade for an options contract is accepted and completed, you can initiate the Vola trade for the underlying futures contract.

Note: The Exch OrderID column in the Audit Trail shows the TT generated order ID value for the completed options Block trade. This value is now automatically available in the Options Order ID field drop down when using Blocktrader to submit the Vola trade for the underlying future contract.

To submit the Vola trade, you must first complete the Blocktrader fields listed in Common Wholesale Trade Fields for Eurex. In addition, complete the fields provided in the following table.

The following is an example of a Eurex Vola trade:

Exchange for Physical (EFP) Fixed Income Trades

You can use Blocktrader to submit either side of an EFP trade. When you are notified by the counterparty that they have submitted a wholesale EFP Fixed Income buy order, you can submit the corresponding sell order and accept the trade in Blocktrader. As part of submitting the sell side of an EFP order and accepting the trade, you must select the Settlement Institution (SI) responsible for clearing the transaction.

To submit Exchange for Physical Fixed Income trades, first complete the Blocktrader fields listed in Common Wholesale Trade Fields for Eurex. In addition, complete the fields in the following table.

The following is an example of a EFP Fixed Income trade:

Exchange for Physical (EFP) Index Futures Trades

You can use Blocktrader to submit either side of an EFP trade. When you are notified by the counterparty that they have submitted a wholesale EFP Index Futures buy order, you can submit the corresponding sell order and accept the trade in Blocktrader. As part of submitting the sell side of an EFP order and accepting the trade, you must select the Settlement Institution (SI) responsible for clearing the transaction.

To submit Exchange for Physical (EFP) Index Futures trades, you must first complete the fields listed in Common Wholesale Trade Fields for Eurex. In addition, complete the fields provided in the following table.

The following is an example of a EFP Index trade:

Cross Trades

Eurex mandates that members send an "intention to cross" (ITC) message prior to performing a cross trade. Using the Auto ITC option in Blocktrader, you can automatically send this message prior to the cross when you click Submit and confirm the trade. The "intention to cross" message is broadcast to all market participants.

To submit a Cross trade, complete the Blocktrader fields listed in Common Wholesale Trade Fields for Eurex for both sides of the trade.

Before submitting the order, click the Intention to Cross ITC button. This submits your cross request to the market and activates the ITC timer. Eurex sets the time limit to wait before submitting the matching cross orders. The exchange also determines how long the cross request is active.

Optionally, check the Auto ITC checkbox to automatically submit the Cross after your user-defined time limit expires. When enabled, the Submit button displays "Abort" and counts down the timer. If needed, click this button again to cancel the cross request.

Once ITC is clicked, its status is shown in the Message Indicator prior to submitting the trade. ITC status is also viewable in the Audit Trail under the Message Types: CrossRequestResponse and ExecutionReport.

The following figure shows an example of a Cross trade in Blocktrader: