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Eurex EnLight
the selective RFQ platform
Improved compliance controls

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Key Visual für Eurex EnLight
Eurex Exchange
Eurex EnLight ­ the new electronic
price discovery platform
For the past two years Eurex has been actively engaged
with understanding how MiFID II will impact our industry.
Eurex investigated the impact of the new regulatory
regime on our members so that we may provide them with
innovative solutions. One of the outcomes of this process
is the introduction of Eurex EnLight, a selective RFQ platform,
as a service that member firms can use for the price formation
and arranging of off-book orders.
MiFID II has become a catalyst for change, presenting
not only challenges around compliance but opportunities
as well. Eurex EnLight has been designed to assist our
members in not only meeting Best Execution requirements,
the most onerous of these new regulatory challenges,
but also to increase efficiencies around the existing voice
and chat work processes.
Any new solution should not just be about assisting
in the BestEx compliance proof, but rather to improve
the process as a whole for industry participants.
Ultimately, the goal should be to further improve
liquidity, to benefit all market participants.
Randolf Roth, Member of the Eurex Executive Board.
In addition to solving some core problems for our members,
Eurex believes the increased electronification of the off-
book business will ultimately improve overall market liquidity
and increase structural diversity.
Solving the four key aspects of BestEx (graph below) within
the existing voice and chat workflows is no small task
and can prove to be quite costly. Eurex EnLight accurately
replicates the voice business, while affording its users all
the advantages of electronic data collection, quote collation,
synchronisation, and of course the efficient, timely retrieval
of all this information should it be required in the future.
A new way to source liquidity
This new RFQ platform brings together Brokers and Market
Makers to negotiate safely off-book and sends struck deals
STP into the T7 Entry Service.
Eurex EnLight does not impose its own interpretation
of BestEx. Instead, Eurex makes available all the data
to enable investment firms to support their own internal
best execution policy.
Requirement to take
all sufficient steps
to achieve the best
result for clients*
MiFID II references: *Article 27 (1) **Article 16 (7) par 2 ***Article 16 (7) par 9
Take into account price,
cost, speed, likelihood
of execution, size, nature
or any other considerations*
All communication
intended to lead
to a trade needs to be
collected, collated and
synchronized**
Synchronized data must
be retrievable in a timely
manner, for use in proof
of BestEx from clients for
up to five years***
A solution to meet the best execution challenge for your ETD off-book business
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Eurex
EnLight
Eurex T7 Entry Services
Market
Makers
Regulated Market Eurex
Deutschland
Price formation
Execution
M
M
Execution
brokers / inter-
dealer brokers
Deals
M
www.eurexchange.com
Spotlight on:
Eurex EnLight
The new Eurex Liquidity Discovery Service
Increased
market efficiency
Eurex EnLight ­
the selective RFQ platform
A new way
to source liquidity
Eurex EnLight ­
the selective RFQ platform
Eurex EnLight ­ the selective RFQ platform
Technology to facilitate proof of BestEx
Highlights
A selective RFQ platform to negotiate safely
Increased information on flow quality (not anonymous),
and reduced leakage (not all-to-all) plus limited time
exposure on quotes (RFQ session). Affords Market Makers
the confidence to meet off-book liquidity needs.
Effective technology to assist in regulatory compliance
Assists members to comply with MiFIDII /MiFIR associated
increased obligations, specifically BestEx. Does not impose
BestEx interpretation but offers the tools to monitor and
enforce the firm's policy.
Increases speed of price formation
Addresses existing member limitations around the price
discovery process. The platform displays a collated view
of all received quotes as well as implied orderbook prices,
giving all relevant information at a glance. STP processes
increase efficiency and reduce errors.
Improved compliance controls
Rules to reduce probability of non-adherence to execution
policy. Configurable parameters to decrease or prevent
undesired behavior.
Built on proven technology
Built on Eurex Exchange's T7 trading architecture.
Can be accessed via existing Eurex GUI or via the T7 API.
Automatic availability with T7 Release 6.0
No separate agreements or special setup required. All Eurex
members can use the service through the T7 GUI.
Availability of default lists with dedicated Market Makers.
Improving liquidity, reducing slippage and leakage
Voice/chat price formation is primarily a series of bilateral
conversations, making it difficult to efficiently retrieve and
collate quotes from more than a few participants at a time.
With Eurex EnLight it is equally easy to receive quotes and
strike deals with multiple participants as it is with just one,
increasing the diversity and depth of liquidity. The platform
displays a collated view of all received quotes as well as
implied orderbook prices.
Selective disclosure of information ensures safe negotiations
and controls leakage.
Full liquidity information available at a glance, increasing
speed of price formation and reducing slippage.
Eurex developed the platform to make the work at the desk
easier and more efficient. All struck deals are sent via STP
into T7 Entry.
Product focus
Initial products will include:
·
Fixed income Options (OGBL, OGBM, OGBS, OOAT, OBTP)
·
Money Market Options (OEU3, OEM1­ 4)
Additional products will be added shortly thereafter.
Market insights and intelligence
Collection and analysis of price formation data to gather
important market intelligence on counterparties is difficult
with existing voice/chat processes. Eurex EnLight allows
users to generate reports to gain valuable insights.
The platform is fully electronic and has a comprehensive
audit trail functionality. Analysis of available data helps
members to make more informed decisions around quoting
or selection of counterparties.
For further information please visit www.eurexchange.com or contact
Sales United Kingdom
Vassily Pascalis
T +44-20-78 62-72 11
vassily.pascalis@eurexchange.com
Order Number: E2E-189-0416
ARBN Number: Eurex Frankfurt AG ARBN 100 999 764
Neither Eurex Frankfurt AG (Eurex), nor its servants nor agents, is responsible for any errors or omissions contained in this publication which
is published for information only and shall not constitute an investment advice. Any information herein is not intended for solicitation purposes
but only for the use of general information. Eurex offers services directly to members of the Eurex market. Those wishing to trade in any
products available on the Eurex market or to offer and sell any such products to others should consider both their legal and regulatory position
in the relevant jurisdiction and the risks associated with such products before doing so.
Not anonymous
Execution broker is named.
Market Makers can see
who is sending the RFQ.
Selective
Execution broker
can decide which
Market Makers
to RFQ.
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