Eurex Group Announces New Structure to Promote Fairer Markets

Eurex Group, an exchange and clearinghouse operator, has announced its new structure to promote a fairer financial market in order to stay up to date with evolving investment behavior and a changing regulatory environment.

As part of its market structure roadmap, which aims to enhance the organization, transparency, and fairness of the financial markets, the Eurex Group has expanded the functionality of its Eurex EnLight feature as well as launched Eurex Improve and Eurex Protect.

“We want to attract as much diversified flow as possible to our main tool, which is the central limit order book. As there is also a need for large-scale business, we developed solutions to attract this heterogeneous flow on exchange as well,” the statement said.

Outline of Eurex Group Tools

Eurex EnLight is the company’s solution for large-scale business off-book trade conclusions. The aim of this function is to move its over-the-counter (OTC) business in Eurex products to on-exchange and into central clearing.

By doing this, banks and brokers will be able to selectively contact Market Makers with quotes so they can find a trading counterparty. These orders are executed through Eurex’s T7 Entry Service. Following this, they are automatically transmitted for post-trade processing.

The aim of the Eurex Improve tool is to attract additional trading volumes through guaranteeing its members end-customers with full executions of any trading quantity to the best price available in the market, the statement from the company outlined.

According to Eurex Group: “The objective behind Improve is to motivate banks/brokers to attract more customer flow to the order book by providing them with preferred customer interaction ability. This counters fragmentation as it strengthens the order book. To the benefit of the end-client, this market-driven solution is meant to increase facilitation of customer flow to interact with the price improvement competition in the order book.”

The final tool is Eurex Protect. The purpose of this mechanism is to address the speed disadvantage Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term providers have in the order book when compared to certain aggressive super-fast strategies. This tool particularly allows Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term to focus on the end-clients, such as institutional investors.