On Aug. 4, Eurex detailed reform of the liquidity provider framework.
Eurex published Circular 049/26 Reform of the Liquidity Provider Framework for Single Stock Equity Options, on reform of Framework for Single Stock Equity Options (SSEO).
Circular Overview
Executive Board decided to amend the General Supplement to the Liquidity Provider Agreement (Attachment 1) and offer Liquidity Provider Scheme to Trading Participants for Single Stock Equity Options set out in Product Specific Supplement (Attachment 2).
Amended framework is designed to simplify existing Liquidity Provider Program and to support development in order book, introducing a performance-based incentive model.
The new framework aims to broaden and stabilize liquidity provider coverage across the SSEO products, improve visible order book liquidity and reference price formation, as well as to simplify participation requirements and to reduce operational complexity.
Also to reward Liquidity Providers on actual quoting performance, including spread quality, the size quality, product coverage, the expiry coverage and RFQ engagement.
In addition to supporting liquidity in weekly expiries for some selected SSEO products.
Amended framework will change in two phases, from Sep. 1 2026, Eurex will activate measurement and reporting processes while rebating continues in existing framework.
From Nov. 1, 2026, changes in General Supplement and Product Specific Supplements come in force, with rebating taking place under SSEO Liquidity Provider Framework.
Liquidity Providers are informed QuoteSizeRules in T7 will be adjusted Sep. 1 2026, to MinBidSize and MinOfferSize 1 for all SSOs for both regular and fast market conditions.
A new Spread Class assignment, defined in Attachment 2 is effective on Nov. 1, 2026.
Required Action
All Liquidity Providers in the Liquidity Provider Program for Single Stock Equity Options must note amended Attachments 1 and 2 requirements, and adjust quotation activity.
The amendments will be deemed to have been approved if Liquidity Providers do not lodge objections with Eurex Frankfurt AG in two weeks after publication of the Circular.
Attachments
There are seven attachments providedAttachment 1 – Amended General Supplement to the Liquidity Provider Agreement, and updated Attachment 2 – Amended Product Specific Supplement “Equity 01 - Equity Options”, changing the two main documents.
Also, Attachment 3 – Amended MMPM XML Parameter File, and Attachment 4 – XSD Schema for MMPM XML Parameter File (90FILMMPARPUBLIYYYYMMDDXEUR.XML_ZIP).
In addition to Attachment 5 – Amended Product Specific Supplement “Equity Index 68: Options on DAX®” and Attachment 6 – New Product Specific Supplement “Equity Index 88: Options for EURO STOXX 50® Index Options”, providing specifics on the changes.
Finally, Eurex provided Attachment 7 – New Product Specific Supplement “Equity Index 89: Options for SMI® Options and SLI Swiss Leader Index® Options”, for the changes.
Effectiveness
The amended Liquidity Provider Framework will now be applicable from Nov. 1, 2026.
