Euronext Amsterdam meldt:
EURONEXT MEDEDELING 2002-066
Onder verwijzing naar Euronext Mededeling 2002-005 deelt Euronext Amsterdam
Derivative Markets mede dat zij voornemens is om te starten met de verhandeling
van de volgende Euronext Class Combinations (hierna "ECCs") via beeldschermen.
Het betreft de Euronext Class Combination met de volgende reeds genoteerde
optiefondsen:
· ASML Holding (ASML), Hagemeyer (HGM) en Koninklijke Vopak (VPK);
· Buhrmann (BUHR), Getronics (GTN), Koninklijke Numico (NUM) en VNU (VNU);
· FTSE Eurotop 100 Index (ET1);
· DSM (DSM), Laurus (LAU) en Unilever (UN/UNO).
De fondsen in deze ECCs zullen dan dus niet meer via de beursvloer worden
verhandeld. In tegenstelling tot wat er in Euronext mededeling 2002-005 stond,
zal het optiefonds ET1 in een apart ECC worden opgenomen. Dit ECC zal alleen
bestaan uit het fonds ET1.
Alle marktpartijen die toegang hebben tot de optiehandel kunnen in die fondsen
direct deelnemen aan de handel.
De overige fondsen
Alle reeds bestaande optiefondsen zullen uiteindelijk via schermen worden
verhandeld. Dit zal gebeuren in tranches zoals beschreven in Euronext Mededeling
2002-005.
Naar verwachting zal de uitkomst van de consultatienota eind juni 2002 worden
gepubliceerd. Hierin zal ook de verwachte afrondingsdatum van het
migratietraject van vloerhandel naar schermenhandel worden bekendgemaakt.
Indien nodig zullen aanpassingen in procedures worden gedaan wanneer Euronext
Amsterdam Derivative Markets van mening is dat dit de verhandeling ten goede
komt alvorens zal worden besloten de volgende fondsen van beursvloer naar
beeldschermen te migreren.
Euronext Liquidity Provider System
Om de kwaliteit, liquiditeit en continuïteit in de markt te behouden heeft
Euronext het Euronext Liquidity Provider System ("ELPS") ontwikkeld welk systeem
op het volgende neerkomt:
Per Euronext Class Combination ("ECC") zal een aantal handelaren een rol
vervullen waaraan specifieke rechten en verplichtingen zijn gekoppeld. Deze
Liquidity Providers (LPs) zorgen er tezamen voor dat er altijd quotes in de
markt staan voor alle series. In ruil voor het verschaffen van deze liquiditeit
kunnen zij, indien hun quote deel uitmaakt van de beste prijs, voorrang krijgen
bij het matchen (voor een bepaald percentage van het te matchen volume). In het
ELPS worden drie verschillende functies onderscheiden: Primary Market Makers
(PMMs), Competitive Market Makers (CMMs) en Traders. Per Euronext Class
Combination zal een maximaal aantal PMM's en CMM's worden aangewezen. Het eerder
genoemde voorrangspercentages zal eveneens per ECC worden bekendgemaakt. Traders
hebben in ELPS géén verplichtingen dus genieten zij ook géén voordelen zoals die
van PMMs en CMMs.
Om continu quoteren door PMMs en CMMs mogelijk te maken en tevens de belasting
van de systemen binnen gecontroleerde grenzen te houden, geldt voor iedere
categorie gebruiker een maximum aantal quotes dat de gebruiker per tijdseenheid
naar de markt kan sturen. Liquidity Providers in de functie van PMM of CMM
kunnen gebruik maken van de mass quote functionaliteit. Hiermee kunnen zij
meerdere quotes per bericht verzenden. Het aantal quotes per mass quote
verschilt per functie en per fonds. Traders kunnen niet gebruik maken van de
mass quote functionaliteit. Alle handelaren kunnen twee berichten per seconde
versturen.
Verdere informatie over PMMs, CMMs en Traders, alsmede informatie over de
inschrijvingsprocedure en de toewijzingsprocedure voor PMMs en CMMs treft u aan
in bijlage 1. Deze bijlage geeft een beschrijving weer van het Euronext
Liquidity Provider Systeem en hieraan kunnen geen rechten worden ontleend. De
rechten en verplichtingen van PMM's en CMM's zullen in een separate overeenkomst
worden vastgelegd.
Bij schermenhandel voor opties zal naast prijs/tijd prioriteit ook rekening
worden gehouden met de functie van de handelende partij (indien er sprake is van
een voorrangspercentage zoals hiervoor genoemd).
Mocht u nog vragen hebben over ELPS dan kunt u uw vraag per mail sturen naar
info.elps@euronext.nl.
Wijze waarop voor bovengenoemde ECCs invulling wordt gegeven aan het ELPS
Voor bovengenoemde ECCs, is Euronext Amsterdam voornemens om de volgende maximum
aantal Liquidity Providers te selecteren:
ECC: PMM CMM
ASML-HGM-VPK 3 30
BUHR-GTN-NUM-VNU 3 20
ET1 2 5
DSM-LAU-UN(UNO) 3 20
Deze selectie zal plaatsvinden op basis van inschrijving van marktpartijen
waarin zij aangeven welk, vooraf door Euronext Amsterdam vastgestelde, pakket
aan verplichtingen zij bereid zijn op zich te nemen. In deze pakketten van
verplichtingen worden verschillende niveaus onderscheiden. Wij verwijzen in dit
verband naar bijlage 2.
De grootte van de mass quote voor PMMs is onderdeel van de selectie procedure
(zie bijlage 1) en zal gedurende deze procedure worden vastgesteld, waarbij aan
het begin van de selectie procedure de mass quote van ieder fonds zodanig is
gekozen dat een PMM binnen 2 seconden al zijn quotes kan wijzigen. De
uiteindelijk voor PMM's vastgestelde mass quote zal gedurende de looptijd van de
overeenkomst bij een toename of afname van het aantal series in een optiefonds
(op maandelijkse basis) pro rata worden aangepast. De mass quote voor CMMs staat
vast en maakt dus geen onderdeel uit van de selectiprocedure. Deze mass quote is
gelijk aan 15% van de initiële mass quote van PMMs. Ook voor CMMs geldt dat de
mass quote, gedurende de looptijd van de overeenkomst pro rata (op maandelijkse
basis) zal worden bijgesteld bij een toename of afname van het aantal series.
Voor de ECC bestaande uit de fondsen ASML, HGM en VPK zal aan het begin van de
selectie procedure gestart worden met de volgende initiële mass quotes voor
PMMs:
ASML 54 quotes per bericht
HGM 16 quotes per bericht
VPK 12 quotes per bericht
Voor de ECC bestaande uit de fondsen BUHR, GTN, NUM en VNU zal aan het begin van
de selectie procedure gestart worden met de volgende initiële mass quotes voor
PMMs:
BUHR 14 quotes per bericht
GTN 38 quotes per bericht
NUM 30 quotes per bericht
VNU 14 quotes per bericht
Voor de ECC bestaande uit het fonds ET1 zal aan het begin van de selectie
procedure gestart worden met de volgende initiële mass quote voor PMMs:
ET1 36 quotes per bericht
Voor de ECC bestaande uit de fondsen DSM, LAU en UN (UNO) zal aan het begin van
de selectie procedure gestart worden met de volgende initiële mass quote voor
PMMs:
DSM 32 quotes per bericht
LAU 12 quotes per bericht
UN 44 quotes per bericht
UNO 4 quotes per bericht
De mass quotes voor CMMs staan vermeld op bijlage 2b.
In het handelssysteem van Euronext Amsterdam Derivative Markets, SWITCH, zal aan
de functie PMM of CMM één of meer user-ids worden toegewezen. Hierbij geldt
maximaal één user-id per optiefonds. PMM's en CMM's kunnen het gebruik van de
user-id's op verschillende manieren inrichten. Indien u deel wenst te nemen aan
de selectie procedure dient u op het formulier, dat aangehecht is als bijlage
3, aan te geven op welke wijze u gebruik wenst te maken van deze user-id's.
Selectie procedure
De selectie procedure voor bovengenoemde ECCs zal starten op:
ECC: Datum:
ASML-HGM-VPK 8 juli 2002
BUHR-GTN-NUM-VNU 11 juli 2002
ET1 15 juli 2002
DSM-LAU-UN(UNO) 22 juli 2002
Om deel te nemen aan de selectie procedure voor één of meerdere ECCs dient u
bijlage 3 in te vullen en naar het daarop vermeld adres te retourneren. Voor
iedere ECC dient u een afzonderlijke formulier in te dienen. Aanmeldingen voor
bovengenoemde ECCs dienen uiterlijk vóór 5 juli 2002 in het bezit van de
afdeling Market Support van Euronext Amsterdam te zijn. Op het desbetreffend
formulier kunt u het adres vinden waar het formulier naar toe verzonden dient te
worden. Indien u dit formulier hebt ingezonden ontvangt u documentatie waarin de
selectie procedure gedetailleerd is beschreven. De documentatie is ook op
aanvraag beschikbaar bij de afdeling Member Relations van Euronext Amsterdam
(tel. +31(0)20 550 6315).
Productietest
Voordat een ECC op het schermen segment wordt geïntroduceerd, zal er een
"productie" test worden gehouden. Tijdens deze test zullen alle LPs in de
desbetreffende ECC normale handel simuleren. Deze tests zullen voor
bovengenoemde ECCs naar alle waarschijnlijkheid plaats vinden op 31 augustus
2002. De definitieve datum zal in een separate mededeling worden bekendgemaakt.
Meer informatie hierover zal worden verspreid na de veiling van de
desbetreffende ECCs.
Market Services
Functionele- en handelsproblemen worden door 'Observers' vanuit de afdeling
Market Services behandeld.
De functie van de 'Observer' in schermenhandel is in grote lijnen vergelijkbaar
met de functie van 'Order Book Official' in vloerhandel. De Observer is in de
eerste plaats verantwoordelijk voor het bewaken van de kwaliteit van de markt.
Het beantwoorden van (handelstechnische) vragen behoort echter ook tot zijn
taken. De 'Observer' onderhoudt telefonisch contact met de marktpartijen.
Daarnaast kan hij of zij elektronisch, binnen het handelssysteem, berichten
verzenden en ontvangen, hetzij naar een individuele handelaar, dan wel naar
meerdere of zelfs alle handelaren.
De 'Observer' heeft de mogelijkheid om 'trading halts' of 'fast market' in te
stellen indien dit nodig is met het oog op het waarborgen van een 'fair and
orderly market'.
Programmatuur
Om deel te kunnen nemen aan handel via beeldschermen dient u over de daarvoor
geschikte programmatuur te beschikken. Hiervoor zijn twee mogelijkheden:
· Euronext Screen Trading Client
· Onafhankelijk ontwikkelde software
Euronext Screen Trading Client
Deze software is door Euronext Amsterdam ontwikkeld en biedt de standaard
functionaliteit voor schermenhandel. De Euronext Screen Trading Client wordt u
gratis ter beschikking gesteld en u dient deze zelf vanaf internet
(www.euronext.com , klik achtereenvolgens op 'organisatie' en 'switch') te
downloaden en te installeren.
Behoudens het importeren en exporteren van order- en transactie gegevens is het
niet mogelijk uw eigen software aan de Euronext Screen Trading Client te
koppelen. Euronext Amsterdam wijst erop dat deze software niet geschikt is om de
functies van PMM of CMM te vervullen.
Onafhankelijk ontwikkelde software
U kunt zelf uw eigen software voor connectie met het handelssysteem (laten)
ontwikkelen of software aanschaffen die door anderen hiervoor is ontwikkeld. Bij
de afdeling Member Relations (tel. +31 (0)20 550 6315) kunt u een lijst van
onafhankelijke software ontwikkelaars (ISV's Independent Software Vendors)
opvragen.
Via de internet site van Euronext Amsterdam (www.euronext.com , klik
achtereenvolgens op 'organisatie' en 'switch') kunt u informatie downloaden met
betrekking tot het ontwikkelen van uw eigen software voor connectie met het
handelssysteem SWITCH.
Locaties
Participeren in de handel voor fondsen die worden verhandeld via beeldschermen
kan op twee manieren:
· vanaf een werkplek binnen Beursplein 5;
· vanaf uw eigen werkplek.
Vanaf een werkplek binnen Beursplein 5
Binnen Beursplein 5 wordt een aantal (tijdelijke) werkplekken ingericht die door
partijen kunnen worden gehuurd om van daaruit deel te nemen aan
beeldschermhandel. Deze werkplekken zijn niet voorzien van een werkstation. U
dient derhalve zelf voor hardware en software te zorgen. Voor verdere informatie
over deze werkplekken kunt u contact opnemen met de afdeling General Services
van Euronext (tel. +31 (0)20 550 4592).
Vanaf uw eigen werkplek
Uiteraard kunt u deelnemen aan handel via beeldschermen vanaf uw eigen werkplek.
Er zijn drie manieren om met uw PC verbinding te maken met de beurs:
· via een vaste lijnverbinding;
· via een ISDN inbel verbinding;
· via internet.
Indien u kiest voor een vaste lijnverbinding dient u rekening te houden met het
volgende: het aanvragen van een vaste lijn geschiedt door Euronext Amsterdam (op
uw verzoek) en de oplevertijd voor een dergelijke lijn kan oplopen tot twee
maanden; het is daarom van belang, indien u kiest voor een vaste lijnverbinding,
deze zo spoedig mogelijk aan te vragen.
Indien u zich middels bijlage 3 inschrijft voor de selectie procedure voor LPs,
dient u (indien u een nieuwe vaste lijnverbinding wenst aan te vragen) ook
bijlage 4 "Order Form Switch" in te vullen en tegelijkertijd met bijlage 3 naar
Euronext Amsterdam te retourneren. Uw aanvraag zal in behandeling worden genomen
zodra u als LP bent aangewezen.
Voor meer informatie over verbinding maken met de beurs en het aanvragen van
vaste lijnen verwijzen we u naar de 'EDM API-03 Networking Guide' en 'EDM API-09
Line Capacity Guide', welke u zelf vanaf internet (www.euronext.com , klik
achtereenvolgens op 'organisatie' en 'switch') kunt downloaden. Mocht u na het
lezen van deze informatie nog vragen hebben of wilt u advies omtrent welk
lijnverbinding de juiste voor u is, dan kunt u contact opnemen met de afdeling
Customer Technical Support van Euronext (tel. +31 (0)20 550 5050)
Opleiding en training
Het handelen via beeldschermen is anders dan het handelen op de beursvloer, het
is daarom belangrijk dat u, voor u gaat deelnemen aan beeldschermenhandel, goed
bent voorbereid.
De volgende middelen staan u ter beschikking om de werking van het
handelssysteem SWITCH goed te begrijpen:
SWITCH Concepts Manual
Dit document, dat u kunt downloaden van internet (www.euronext.com , klik
achtereenvolgens op 'organisatie' en 'switch'), beschrijft de werking van het
handelssysteem in al haar facetten.
Euronext raadt alle deelnemers aan de handel via beeldschermen, aan om kennis te
nemen van de functionaliteiten en concepten van het beeldschermenhandelssysteem
omdat deze cruciaal zijn voor uw begrip van het handelsproces.
Euronext Screen Trading Client Manual
In deze handleiding wordt uitgelegd hoe deze applicatie werkt. Verder kunt u
daar ook de 'Instalation Guide' vinden. Beide handleidingen kunt u downloaden
van internet (www.euronext.com , klik achtereenvolgens op 'organisatie' en
'switch').
Vragen over de werking van Switch
Indien u, na het bestuderen van het bovengenoemde materiaal, nog enkele vragen
heeft over de technische werking van Switch, verzoeken wij u deze vragen te
mailen aan onze Customer Technical Support afdeling (ctsamsterdam@euronext.com).
U krijgt dan zo snel als mogelijk een antwoord op u vraag.
Oefensessies
Euronext Amsterdam biedt de mogelijkheid om praktijkervaring op te doen met
schermenhandel (en de schermenhandel software) door middel van oefensessies.
U kunt vanaf uw eigen werkplek verbinding maken met de oefenomgeving van het
handelssysteem waar u zelfstandig kunt oefenen. De afdeling Customer Technical
Support (tel. +31(0)20 550 5050) heeft voor u een brochure klaarliggen waarin
wordt uitgelegd hoe u verbinding kunt maken met de oefenomgeving van het
handelssysteem.
Vragen
Mocht u naar aanleiding van deze mededeling nog vragen hebben dan kunt u contact
opnemen met de afdeling Member Relations van Euronext Amsterdam (tel. +31(0)20
550 6315).
Belangrijke data
Start Registratie Start Productietest ECC op het
Registratie deadline Selectie-procedure met LPs scherm
ECC
ASM-FOR-NUO 26 november 2001
ING-OCE-VRSA 29 april
AGN-AKZ-VDX 27 mei
CMG-MOO-WKL 10 juni
DRAK-FUR-PINK-VWS 29 juni 8 juli
AAB-GUC-ORDI 29 juni 8 juli
DEX-EDX 31 mei 14 juni 17 juni 10 augustus 26 augustus
KPN-TPG-WES 31 mei 14 juni 24 juni 10 augustus 26 augustus
AH-CRS-HEI-RAND 31 mei 14 juni 1 juli 10 augustus 26 augustus
ASML-HGM-VPK 21 juni 4 juli 8 juli 31 augustus* 9 september
BUHR-GTN-NUM-VNU 21 juni 4 juli 11 juli 31 augustus* 16 september
ET1 21 juni 4 juli 15 juli 31 augustus* 9 september
DSM-LAU-UN 21 juni 4 juli 22 juli 31 augustus* 16 september
* Dit is een indicatie. De definitieve datum zal in een separate mededeling
bekend worden gemaakt.
Appendix 1
Euronext Liquidity Providers System (ELPS)
for screen trading at
Euronext Amsterdam N.V.
Date: 21 June 2002
Author : Euronext Amsterdam N.V.
Contents
SUMMARY 3
1 INTRODUCTION 5
1.1 BUSINESS VIEW 5
1.2 EURONEXT'S TRADING PLATFORMS 5
2 CAPACITIES, OBLIGATIONS AND BENEFITS OF LIQUIDITY PROVIDERS AND TRADERS 7
2.1 CONDITIONS GOVERNING PMMS 7
2.1.1 Benefits of PMMs 7
2.1.2 Obligations of PMMs 7
2.2 CONDITIONS GOVERNING CMMS 8
2.2.1 Benefits of CMMs 8
2.2.2 Obligations of CMMs 8
2.3 CONDITIONS GOVERNING TRADERS 9
2.4 PERCENTAGE OF TURNOVER 9
2.5 MASS QUOTE FUNCTIONALITY 9
2.6 SELECTION 9
2.7 MASS QUOTE LEVELS 11
2.8 PERFORMANCE ASSESSMENT 11
2.9 MONITORING PRESENCE/OBLIGATIONS 12
3 EXAMPLES OF ORDER PROCESSING IN THE ELPS 14
4 DISTRIBUTION AND ALLOCATION OF EURONEXT CLASS COMBINATIONS (ECCS) 17
4.1 COMPOSING ECCS 17
4.2 ALLOCATION OF ECCS 18
4.3 INTRODUCTION, DELISTING OF OPTIONCLASSES AND CORPORATE EVENTS 18
4.4 LIQUIDITY PROVIDERS AND ECCS 19
Summary
Euronext wishes to introduce an integrated screen-trading facility for its
derivatives markets. In order to be successful, the migration of floor trading
to screen trading in Amsterdam must be carried out according to the 'full
screen' concept, which should be extended to the entire Euronext market. Main
goals hereby are 'keeping the liquidity with competitive prices in all series'.
Basically, this means that bid and ask prices for all option classes in each
series will be continuously displayed on screen. It should be possible for
every user to trade at the quotes displayed on screen, but the system should
also provide sufficient functionalities to protect market makers from all their
quotes being hit at the same time. Users need to feel safe when using the
screen-trading system.
For the central market, Euronext wishes a system or market structure which
provides quotes on screen continuously. The benefits of full screens apply
particularly to the central market, which does not trade by requesting quotes as
the professional market is more inclined to do. Full screens also mean that
trading can be done on screen without the need to use the telephone.
Although the current exchange centres of Euronext have different histories, they
will be able to migrate to one optimum solution. Euronext will choose a market
model which combines the best of all worlds: an anonymous system that will show
the biggest volumes and best prices, hence the tightest spreads.
This document sets out how we plan to achieve full screens in screen trading.
Our plan is based on the concept that 'obligations' (providing quotes) must be
compensated by sufficient 'benefits'. By providing benefits for a particular
group, Euronext believes that some market makers will want to specialise in
particular areas. The system therefore has applications that can be allocated to
specific parties. This report contains a step-by-step description of the system
that Euronext will be using - the Euronext Liquidity Providers System.
Principles of the ELPS
The ELPS allocates a combination of liquidity providers, i.e. Primary Market
Makers (PMMs) and Competitive Market Makers (CMMs), to every option class. Other
Members who wish to be active but do not want extra obligations can get the
Trader status. These three capacities do not include any broker activities.
Liquidity providers provide a two-sided market for particular or all (depending
on their capacity) series in an option class, thereby creating sufficient
liquidity in the product for which they are acting as liquidity provider.
Liquidity providers not only have obligations, they also enjoy certain benefits.
Traders, however, do not have any obligations in the way that other liquidity
providers do, nor are they obliged to specific option classes. They also enjoy
fewer benefits.
To encourage liquidity providers to accept these obligations, they can be
offered benefits such as lower fees, fixed percentages of turnover (if traded on
their price) and additional system capacity and functionalities.
The ELPS applies a priority system for liquidity providers, a fixed percentage
of incoming order flow can be allocated to PMMs when they provide quotes that
are equal to the best price in the market. Once the PMMs have received their
percentage of the trade, the underlying orders are filled on the basis of the
First In First Out (FIFO) principle. FIFO does not distinguish between firm
orders and customer orders. When an order matches the liquidity providers'
quote, trading in the series will not be frozen (we are referring here only to
quotes provided by the PMMs, not their orders) Individual orders entered by a
liquidity provider are not given priority over other orders or quotes.
Distribution and allocation of Euronext Class Combinations (ECCs)
Members may act as a Liquidity Provider or Trader in the various option classes.
A limited combination of PMMs and CMMs can be assigned to an option class. The
remaining parties are Traders.
Option classes are divided into packages (ECCs) for liquidity providers
according to a fixed procedure, with each package initially composed of three or
four option classes. The packages are compiled according to the number of
contracts traded over a period of one calendar year (an estimate will be made
for option classes that have not yet been introduced). At the end of the period,
the average daily volume is calculated for each option class. The option classes
are subsequently broken down into four categories.
Cat. A Cat. B Cat. C Cat. D
Options on national shares Options on foreign shares Options on indices
Options on commodities
The packages are determined by linking the option class that has the highest
volume in a specific category with the option class with the lowest volume and a
class with an average volume. This results in three types of packages: equity
option ECCs, index option ECCs and commodity option ECCs.
Conclusion
The proposed ELPS is designed to maintain the present strength of the central
options market and bring these strengths to the institutional market as well.
The retail sector can invest actively because quotes are available at all times.
The ELPS guarantees prices for every option class in all series, regardless of
their lifetime. The creation of ECCs and a guaranteed minimum volume per
transaction encourages liquidity providers to improve the volume in their option
classes. There is only a guaranteed minimum if the Liquidity Providers price is
the best price.
The ELPS is easy to use and understand. Performance and reward are directly
related to each other, with parties monitored constantly to ensure they are
meeting their obligations. The system is therefore ideal for today's and
tomorrow's market makers.
1 Introduction
Euronext operates several derivatives markets. In these markets different
instruments, such as options and futures, are traded on very different
underlying values, such as fixed-rate instruments, equities, equity indices and
agricultural products. The environment in which trading takes place in these
markets - the trading platform - is also different. The task ahead is to combine
all these trading activities in a single screen-based environment that can
accommodate the current products, enhance their existence, and ensure the
continuing growth of what is currently a very successful market on the floor in
Amsterdam.
1.1 Business view
Overview of current market
Euronext 's derivatives markets are in competition with other marketplaces both
in terms of equity options (mainly on leading Euronext shares) and interest-rate
products. Equity options are still growing and Euronext is the number one market
for them in Europe. In terms of market participants, we see that in France and
Belgium institutions and professional traders are the most active and provide by
far the most volume, whereas in the Netherlands much of the volume comes from
private investors. Because of the high percentage of private (retail) investors,
the Dutch market is also very appealing to institutions and professional
traders.
Growth market
Euronext believes that the market for equity products has growth potential. This
market includes options and futures on individual shares. To a certain extent,
index products are a growth market as well, although a precondition is that the
right index is used (tradability versus the degree to which it represents the
benchmark). National indices will serve their purpose for some time yet,
especially when it comes to products, such as exchange traded funds (ETFs),
which are traded on the cash market. The growth market in equity products should
be built on a broad base of private investors.
1.2 Euronext's trading platforms
Different segments
At present, Euronext's derivatives trading centres each have their own trading
platform. Each platform represents market models based on the demands of its
members. Some market models are based on volumes (wholesale trading) while
others are based on prices (central trading).
Wholesale users of the market want to trade large volumes and have their own
price-discovery process. Instead of size, retail users need pre-trade
information on the prices at which they can trade.
Unique system
Although each centre takes a different approach to marketing and
functionalities, Euronext has developed a unique trading system that combines
the best of all worlds.
This is an anonymous trading system which should show the largest volumes, the
best prices and hence the tightest spreads, and combines the characteristics of
the wholesale and central markets.
Euronext has had meetings with several parties who are active on Euronext's
derivatives markets to discuss the best way of introducing screen trading for
options at Euronext Amsterdam. This is particularly relevant for Amsterdam,
which operates a successful floor-trading market in options and has set the goal
to migrate to the screen environment. At the meetings, most parties clearly felt
that the ideal option screen-trading system for private and professional parties
did not yet exist and were prepared to help think of ways of creating one.
Euronext wants to introduce a screen-based environment for options that
accommodates full screens with tradable prices. In concrete terms, this means
that bid and ask prices for all option classes in each series will be
continuously displayed on screen. It should be possible for every trader and
broker to trade at the quotes displayed on screen, but the system should also
provide sufficient functionalities to protect Liquidity Providers from too many
of their quotes being hit at the same time. Traders are prepared to commit
themselves but do not wish to be exposed to positions which are unnecessarily
large from an economic point of view. On the other hand, the system must also be
suitable for trading large orders on a professional basis.
This document explains how screen trading will be implemented in the trading
platform. This method is based on the concept that 'obligations' (providing
quotes) must be compensated by sufficient 'benefits'. By providing more
benefits for a particular group, Euronext believes that traders will be
encouraged to specialise and that this in turn will benefit the market. The
system therefore has applications that can be allocated to specific parties. The
new screen-based system needs to combine the benefits of the floor as well as
all the advantages of the screen.
This report contains a step-by-step description of the ELPS that Euronext
Amsterdam will be using.
2 Capacities, obligations and benefits of Liquidity Providers and Traders
2.1 Conditions governing PMMs
Members which are PMM in an Euronext Class Combination (ECC) are required to
maintain the market. Euronext Amsterdam will use the following selection
criteria to assess potential PMMs.
§ They must be registered as Members .
§ They must use software which is validated by Euronext Amsterdam Derivative
Markets.
PMM-candidates will be admitted once they have provided a written statement form
their Clearing Member to the effect that they agree with the registration of the
relevant member as a PMM and signed the agreement in which the rights and
obligations of the PMM are laid down. Eventually, PMM agreements will have a
duration of one year. However, during the transitional period in which all
option classes are migrated from floor- to screen trading, agreements will be
entered into for a period up to June 2003.
2.1.1 Benefits of PMMs
· Percentage of the turnover traded at the PMM's prices (see paragraph 2.4).
· The designated trader fee (€ 0.10 per contract) in the ECC option classes and
the non-designated traders fee (€ 0.20 per contract) in the other option classes
on screen.
· Mass quote functionality: PMMs can send two messages per second, with each
message containing several quotes (see paragraph 2.5).
· Central delta protection. Information on delta protection can be found in the
Switch Concept Manual which is available on the internet web site
(www.euronext.com).
2.1.2 Obligations of PMMs
· The obligation to quote prices in all series of the classes in the ECC (valid
quotes must be in the market for 90% of a day's trading hours). PMMs may also
comply with this obligation by sending in two sided orders.
Example:
A certain class consists of 100 series. On a particular trading day each serie
is "open for trading" during a period of 30,000 seconds. To fulfil its
obligation a PMM must have valid quotes for 27,000 seconds in each serie.
If the PMM is unable to meet the 90% requirement due to a case of force majeure,
it must inform Euronext Amsterdam (Quality of Derivative Markets department)
of this in writing. Euronext Amsterdam will decide whether or not force majeure
actually existed.
· PMMs must comply with at least the minimum size requirements and maximum
spread rules as laid down in the PMM-agreement. These minimum size requirements
and maximum spread rules are determined during the selection procedure.
· The two-sided quote in the market does not have to be updated until all volume
of one side has been hit.
2.2 Conditions governing CMMs
Members may become CMM in an ECC. CMMs are required to maintain the market in a
percentage of the series in the concerning ECC. Euronext Amsterdam will use the
following selection criteria to assess potential CMMs.
§ They must be registered as Members .
§ They must use software which is validated by Euronext Amsterdam Derivative
Markets.
CMM-candidates will be admitted once they have provided a written statement form
their Clearing Member to the effect that they agree with the registration of the
relevant member as a CMM and signed an agreement in which the rights and
obligations of the CMM are laid down. Eventually, CMM-agreements will have a
duration of three months. However, during the transitional period in which all
option classes are migrated from floor- to screen trading, agreements will be
entered into for a period up to June 2003.
2.2.1 Benefits of CMMs
· The designated trader fee (€ 0.10 per contract) in the ECC option classes and
the non-designated traders fee (€ 0.20 per contract) in the other option classes
on screen.
· Mass quote functionality: CMMs can send two messages per second, with each
message containing several quotes. The amount of quotes within a message will be
determined on basis of the PMM's mass quote in the specific classes (see
paragraph 2.5).
· Central delta protection. Information on delta protection can be found in the
Switch Concept Manual which is available on the internet web site
(www.euronext.com).
2.2.2 Obligations of CMMs
· The obligation to quote prices in at least 10% (general rounding rules will
apply) of all the series of each class of the ECC, to be fulfilled in the series
having a remaining term of 6 months or longer (valid quotes must be in the
market for 90% of a day's trading hours). CMMs may also comply with this
obligation by sending in two sided orders. The CMM chooses which series with a
remaining term of 6 months or longer he wishes to quote.
Example:
A certain class has 100 series. Of those series 60 have a remaining term of 6
months or longer. To fulfil its obligation a CMM must have valid quotes in 10
series (10% of 100 series) of these 60 series. These 10 series are not
necesssarily the same series during the whole trading day. In other words,
during the trading day the CMM may decide to start quoting other series as long
as quotes in a minimum of 10 series having a remaining terms of 6 months or
longer are in the market for at least 90% of the trading hours.
If the CMM is unable to meet the 90% requirement due to a case of force majeure,
it must inform Euronext Amsterdam (Quality of Derivative Markets department) of
this in writing. Euronext Amsterdam will then decide whether or not force
majeure actually existed.
· On a monthly basis CMMs have to respond to 75% of the quote requests in all
series (only single series) of each class within an ECC (including series with a
remaining term of 6 months or longer in which the CMM has no valid quote at that
moment). CMMs have to respond to a quote request within 20 seconds as from the
moment on which this quote request was sent to the market. A CMM should respond
to the quote request by sending in a two sided quote (according to the general
maximum spread rules and minimum size of 10 contracts) which is to remain valid
for at least 20 seconds (during this period the quote may be adjusted). A CMM
automatically complies with the lastmentioned obligation if it already maintains
a two sided market in the concerning serie.
· In 10 % of the series of each class of the ECC, CMMs must comply with at least
the minimum size requirements and maximum spread rules as laid down in the CMM-
agreement. CMMs will have then the same minimum size and maximum spread
obligations as the PMMs. In all other series CMMs have to comply with the
general rules when sending in quotes.
· The two-sided quote in the market does not have to be updated until all volume
of one side has been hit.
2.3 Conditions governing Traders
Euronext Amsterdam will use the following selection criteria to assess potential
Traders.
§ They must be registered as Members.
§ They must use Euronext Amsterdam Derivative Markets validated software.
Traders are not allocated to an ECC and may provide quotes in all option
classes. Traders do not have any obligations and therefor also have no special
rights.
Traders can send two messages per second, with each message containing 1 quote.
2.4 Percentage of turnover
PMMs may receive a guaranteed percentage of the turnover traded at their prices
in the classes in which they act in the capacity of PMM. This guaranteed
percentage will differ from class to class and is included in the levels of
obligations (see appendix 2a). For further information on the guaranteed
percentage of turnover please be referred to chapter 3 (examples in order
processing). Please note that the guaranteed percentage of turnover is not
applicable to the capacity of CMM.
2.5 Mass quote functionality
Each PMM or CMM will have access to the mass quote functionality. The amount of
quotes in one mass quote will differ from class to class and is dependent on the
Members' capacity, the amount of series in that specific class and the selection
procedure (we refer to paragraph 2.6). The PMM mass quote will initially have
enough quotes to update all the series in a class within two seconds. The
initial amount of quotes in one mass quote for CMMs will be 15% of the PMM's
initial mass quote rounded up to the next even number.
2.6 Selection
ECCs are allocated through a process of bidding. The selection procedure will
take mainly place by means of e-mail. Euronext Amsterdam will announce the exact
selection dates for a specific ECC. Furthermore the maximum and minimum number
of PMMs and CMMs will be announced for the concerning ECC.
Selection procedure for the PMM capacity
A selection day will take place from 9:00 to 17:00 (CET). Selection of PMMs may
take more than one day.
The selection procedure for the PMM capacity will be executed as follows:
1. Euronext Amsterdam will set several obligation levels which relate to spreads
between bid and ask quotes and the minimum size that these quotes cover.
Furthermore, the conditions for PMMs may also include the guaranteed percentage
of the volume.
2. During the selection procedure applicants are invited to bid on the levels of
obligations they are willing to accept the position of PMM for the relevant ECC.
They have to send their first bidding before 10:00 (CET).
3. After 10:00 (CET) all applicants for the PMM capacity which sent in their bid
have the opportunity to adjust their bid to a higher level as often as they
wish. Euronext Amsterdam will publish each hour the number of bids for each
obligation level.
4. At the end of the bidding session , Euronext Amsterdam will evaluate the bids
as follows.
If at the end of the bidding session the number of bids for the highest possible
obligation level is more than the predefined maximum of PMMs in the concerning
ECC, Euronext Amsterdam will continue the selection procedure for the PMM
capacity with a second bidding session. All Members which have given a bid for
the highest possible obligation level in the first bidding session will be
invited to bid on 'mass quote levels' (see paragraph 2.7).
In case after the second bidding session the number of bids, for the highest
mass quote level on which bids have been given, remain more than the predefined
maximum of PMMs in the concerning ECC, Euronext Amsterdam will take the
'performance assessment' into account (see paragraph 2.8). Euronext Amsterdam
will then give priority to the members with the highest turnover and ranking in
the relevant classes during this period.
In case during the first bidding session, at 10:00 (CET) the number of
applications for the PMM capacity is less than the predefined minimum of PMMs
in the concerning ECC, Euronext Amsterdam reserves the right to introduce new
lower obligation level(s). In this case the first bidding session will last
until 13:00 with additional updates at 12:00, 12:30 and 13:00.
In case during the first bidding session, at 10:00 (CET) the number of
applications for the highest obligation level is more than the predefined
maximum of PMMs in the concerning ECC, Euronext Amsterdam reserves the right to
introduce new higher obligation level(s). In this case the first bidding session
will last until 13:00 with additional updates at 12:00, 12:30 and 13:00. During
this time a Member may wish to consult its Clearing Member in order to make sure
that the Clearing Member approves the subscription to the higher levels
Selection procedure for the CMM capacity
The session for the selection of CMMs will take place from 9:30 to 12:30 (CET).
There will only be one session for CMMs.
The selection procedure for the CMM capacity consists of the following:
Once the PMMs for the concerning ECC are determined, all other Members who have
registered for the selection procedure may apply for the capacity of CMM. The
obligations (spread and size) will be the same as for the PMMs but only
regarding 10% of all the series in each class (to be fulfilled in series with a
remaining term of 6 months or longer). A CMM is free to determine to which
series (with a remaining term of 6 months or longer) its obligations apply. In
all the series they will have an additional quote-request-respond-obligation of
75%. This means that each CMM must respond to 75% of the request for quotes in
each class (see paragraph 2.2.2). The quote-request-respond-obligation of 75%
will be checked on a monthly basis.
If the number of applications for the capacity of CMM is higher then the
predefined maximum of CMM within a specific ECC, Euronext Amsterdam will take
the 'performance assessment' into account (see paragraph 2.8).
Detailed information about the selection and selection days will be provided to
the parties having registered with the registration form (Appendix 3) and is
available on request.
2.7 Mass quote levels
In case after the first bidding session in the selection procedure for the PMM
capacity, the number of bids for the highest possible obligation level is more
than the predefined maximum of PMMs in the concerning ECC, Euronext Amsterdam
will continue the selection procedure for the PMM capacity with a second bidding
session. In this second bidding session Members which made a bid for the highest
possible obligation level may bid on 'mass quote levels'. Euronext Amsterdam
will determine several levels consisting of a decreasing number of quotes within
one mass quote message. The initial PMM mass quote for each class will be used
as the first level. On each following mass quote level the number of quotes will
be decreased with 10% (general rounding rules will be applicable). The mass
quote levels are set out in appendix 2b.
The bidding process in this second bidding session will be organized in the same
way as the first bidding session (we refer to paragraph 2.6). Euronext Amsterdam
will give priority to those Members which give a bid on the highest level (with
the lowest mass quote).
2.8 Performance assessment
Performance will be evaluated as follows:
First, the volume (number of contracts) traded by each candidate (each account
number separately) in the option classes related to the relevant ECC during the
assessment period will be calculated. Only contracts traded by Traders employed
by the relevant Member will be taken into account. Volume not generated by these
Traders (but instead through a third party) and volume not traded in open
outcry (e.g. volume traded via the 'Prof' segment) will not be taken into
account.
Next, the volume calculated in this way will be divided by the average number of
permits held by the relevant Member during the assessment period, subject to a
maximum of three permits. In this way, performance per trader could be taken
into consideration.
The candidates will then be ranked on the basis of the results in order of their
performance.
Members which have not achieved any volume in the relevant option classes will
be subject to the same procedure, but in that case the volume achieved in all
option classes will be used as a basis. Again, the total volume will be divided
by the average number of permits. In this case no maximum number of permits will
be applied.
Members which generated volume in the relevant ECC option classes will be given
priority above members which have not achieved volume in these classes.
Euronext Amsterdam will make the final decision as to who receives the PMM and
CMM status. There will be no maximum of ECCs that an Member may have in the
capacity of PMM or CMM. Members are not allowed to have the capacity of CMM in a
ECC where they are already PMM.
The maximum number of liquidity providers in one ECC will differ per ECC and is
dependent on the average daily volume of the specific ECC.
2.9 Monitoring presence/obligations
Daily checks will be performed to establish whether liquidity providers have met
their obligations.
If they fail to do this during one trading day, Euronext Amsterdam will notify
the Member involved by means of official warning. If this situation continues
during the subsequent days within a assessment period (period between two
expirations), the following penalties will be imposed:
Second day of violation: € 250
Third day of violation: € 500
Fourth day of violation: € 1,000
The penalty will be doubled on each subsequent day that the liquidity provider
fails to meet his obligations within the same assessment period up to a maximum
of € 25,000 per day.
In case a Member does not agree with the imposed penalty, it may send a written
notice of objection to the Market Supervision department. This also can be done
by fax (+31 (0)20-550 4958). An internal performance committee will focus on the
received objections and decide if the imposed penalty should be withdrawn or
not. Please note that only objections send in by Members will be taken into
consideration by the internal performance committee.
Monthly checks will be performed in addition to the daily checks. Every month,
liquidity providers have to meet their contractual obligations relating to
minimum size, maximum spread and eventually additional obligations.
If PMMs fail to meet their obligations in a month, they will be notified of this
in writing. If they fail to meet their obligations three months over a period of
12 months, they will no longer be allowed to act in the capacity of PMM in the
relevant ECC for the remainder of the period stated on the aforementioned
PMM-agreement.
If CMMs fail to meet their obligations in a month, they will be notified of this
in writing. If they fail to meet their obligations three months over a period of
6 months, they will no longer be allowed to act in the capacity of CMM in the
relevant ECC for the remainder of the period stated on the aforementioned
CMM-agreement.
In case a Member withdraws from its capacity as PMM or CMM, regardless of the
reason, Euronext Amsterdam reserves the right to exclude the Member from
becoming a liquidity provider (either PMM or CMM) in the first three ECCs that
will be offered after the date on which the Members has withdrawn. Furthermore,
in case of withdrawal the Member may not apply for PMM and CMM positions which
fall vacant in existing ECCs for a period of three months after the date on wich
the Member has withdrawn.
In case a Member is removed from its position as a PMM or CMM, Euronext
Amsterdam reserves the right to exclude the Member from becoming a liquidity
provider (either PMM or CMM) in the first three ECCs that will be offered after
the date on which the Member has been removed. Furthermore, the concerning
Member may not apply for PMM and CMM positions which fall vacant in exsisting
ECCs for a period of three months after the date on wich the Member has been
removed from its position as a liquidity provider.
Euronext Amsterdam reserves the right to amend all the aforementioned
conditions.
3 Examples of order processing in the ELPS
This section provides examples to illustrate how the ELPS categorises orders and
quotes.
Principle
The system operates on a price/capacity/time principle, so if trading takes
place at the price quoted by a PMM, the PMM will have a right to a fixed
percentage (depending on the registered conditions) of the volume if there are
other parties with quotes or orders at the same price. This fixed percentage
will differ per class.
If the best price consists solely of the PMM's quote, the order will be filled
at the best price up to the size for which the quote was provided (we are
referring here only to quotes provided by PMMs, not their orders). Individual
orders entered by a PMM are not given priority over other orders or quotes.
After the adjustment of the fixed percentage, matching takes place on a First In
First Out basis (time priority).
The number of contracts to be received on the basis of the fixed PMM percentage
when an aggressor order is allocated will be rounded down if the number includes
a fraction of 0.49 or less, and rounded up if there is a fraction of 0.50 or
more.
This means for example that when an aggressor order for four contracts is
allocated, the PMMs, which are allocated 10% (percentage may differ per class),
will not be entitled to any contracts on the basis of their capacity. Instead,
all four contracts will be allocated in accordance with the FIFO principle.
However, when an aggressor order for 15 contracts is allocated, all PMMs that
have provided quotes equal to the best price will be entitled to two contracts
on the basis of their capacity.
For all examples underneath a fixed percentage of 10% has been chosen for PMMs.
Example 1a
The volume of the aggressor is one contract. The table shows the orderbook, and
the result column shows how the order is distributed.
Aggressor size : 1
Providers on best bid-ask Time entry Volume Percentage Result
PMM A 10.00 10 10%
FIFO-group 10.01 1 1
Explanation
Based on the PMM's percentage, the PMM has no right to a contract, leaving one
contract for the FIFO group.
Example 1b
The volume of the aggressor is two contracts and there is a customer order with
higher time priority. The table shows the orderbook, and the result column shows
how the order is distributed.
Aggressor size : 2
Providers on best bid-ask Time entry Volume Percentage Result
PMM B 11.02 10 10%
FIFO-group 10.55 4 2
Explanation
Based on the PMM's percentage, the PMM has no right to a contract, leaving two
contract for the FIFO group.
Example 1c
The volume of the aggressor is six contracts. The table shows the orderbook, and
the result column shows how the order is distributed.
Aggressor size : 6
Providers on best bid-ask Time entry Volume Percentage Result
PMM C 14.45 10 10% 1
FIFO-group 12.23 10 5
Explanation
Based on the PMM's percentage, the PMM has a right to one contract, leaving
five contracts for the FIFO group. If more PMMs are involved, they also receive
part of the volume (1d).
Example 1d
The volume of the aggressor is six contracts. The table shows the orderbook, and
the result column shows how the order is distributed.
Aggressor size : 6
Providers on best bid-ask Time entry Volume Percentage Result
PMM B 16.01 10 10% 1
PMM A 16.02 10 10% 1
PMM D 16.03 15 10% 1
FIFO-group 15.45 10 3
Explanation
Based on the PMM's percentage, the PMMs have a right to one contract, leaving
three contracts for the FIFO group.
Example 2a
The table shows the orderbook, and the result column shows how an order for 20
contracts is distributed.
Aggressor size : 20
Providers on best bid-ask Time entry Volume Percentage Result
PMM A 11.30 25 10% 2
PMM B 11.32 10 10% 2
FIFO-group 11.24 50 16
Explanation
Based on the PMM's percentage, the PMMs have a right to two contract, leaving
sixteen contracts for the FIFO group.
Example 2b
The table shows the orderbook, and the result column shows how an order of the
aggressor for 25 contracts is distributed.
Aggressor size : 25
Providers on best bid-ask Time entry Volume Percentage Result
PMM B 11.54 25 10% 3 + 19
PMM A 11.55 10 10% 3
FIFO-group 11.56 50 0
Explanation
Based on the PMM's percentage, the PMMs have a right to three contracts,
leaving nineteen contracts. According to the time priority PMM B has the right
to be (partially) filled fist.
Example 3
The table shows the orderbook, and the result column shows how an order for 70
contracts is distributed.
Aggressor size : 70
Providers on best bid-ask Time entry Volume Percentage Result
PMM C 9.11 5 10% 5
PMM E 9.14 10 10% 7
FIFO-group 9.06 80 58
Explanation
Based on the PMM's percentage, the PMMs have a right to seven contracts.
However, PMM C only provided prices for five contracts and therefore traded five
contracts. There are seven contracts for PMM E because it provided a quote for
Mass quote levels
Mass quotes for CMMs:
ASML 10 BUHR 4 ET1 6 DSM 4
HGM 4 GTN 6 LAU 4
VPK 2 NUM 6 UN 6
VNU 4 UNO 2
Possible mass quotes for PMMs:
ASML HGM VPK
Level 11 A 54 16 12
Level 11 B 49 14 11
Level 11 C 44 13 10
Level 11 D 39 12 9
Level 11 E 35 10 8
Level 11 F 32 9 7
Level 11 G 29 9 6
Level 11 H 26 8 6
Level 11 I 23 7 5
Level 11 J 21 6 5
Level 11 K 19 6 4
Level 11 L 17 5 4
Level 11 M 15 5 3
Level 11 N 14 4 3
Level 11 O 12 4 3
Level 11 P 11 4 2
Level 11 Q 10 4 2
BUHR GTN NUM VNU
Level 11 A 14 38 30 14
Level 11 B 13 34 27 13
Level 11 C 11 31 24 11
Level 11 D 10 28 22 10
Level 11 E 9 25 20 9
Level 11 F 8 22 18 8
Level 11 G 7 20 16 7
Level 11 H 7 18 14 7
Level 11 I 6 16 13 6
Level 11 J 5 15 12 5
Level 11 K 5 13 10 5
Level 11 L 4 12 9 4
Level 11 M 4 11 8 4
Level 11 N 4 10 8 4
Level 11 O 4 9 7 4
Level 11 P 4 8 6 4
Level 11 Q 4 7 6 4
Level 11 R 4 6 6 4
ET1
Level 11 A 36
Level 11 B 32
Level 11 C 29
Level 11 D 26
Level 11 E 24
Level 11 F 21
Level 11 G 19
Level 11 H 17
Level 11 I 15
Level 11 J 14
Level 11 K 13
Level 11 L 11
Level 11 M 10
Level 11 N 9
Level 11 O 8
Level 11 P 7
Level 11 Q 6
DSM LAU UN UNO
Level 11 A 32 12 44 4
Level 11 B 29 11 40 4
Level 11 C 26 10 36 3
Level 11 D 23 9 32 3
Level 11 E 21 8 29 3
Level 11 F 19 7 26 2
Level 11 G 17 6 23 2
Level 11 H 15 6 21 2
Level 11 I 14 5 19 2
Level 11 J 12 5 17 2
Level 11 K 11 4 15 2
Level 11 L 10 4 14 2
Level 11 M 9 4 12 2
Level 11 N 8 4 11 2
Level 11 O 7 4 10 2
Level 11 P 7 4 9 2
Level 11 Q 6 4 8 2
Level 11 R 5 4 7 2
Level 11 S 4 4 6 2
Appendix 3
Registration for the Euronext Liquidity Provider selection procedure
To register for the selection procedure please fill in pages 2 and 3 of this
form and send a copy of it by fax
(+31 (0)20 550 4996). You will get a confirmation by means of e-mail message.
The original you must send to:
Euronext Amsterdam Derivative Markets
Attn. Quality of Derivative Markets
P.O. Box 19163
1000 GD Amsterdam
The next selection procedures will start on:
ECC: Date:
ASML-HGM-VPK 8 July 2002
BUHR-GTN-NUM-VNU 11 July 2002
ET1 15 July 2002
DSM-LAU-UN(UNO) 22 July 2002
For each ECC a separate form has to be sumitted. Applications for the above
mentioned ECCs must be received before ultimately 5th July 2002 by our Market
Support department at Euronext Amsterdam at the above mentioned fax number. The
selection procedures will mainly take place by means of e-mail. Please note that
the e-mail addresses filled in this registration form will be used during the
selection process. Euronext Amsterdam must be able to contact the
Representatives of the participating Members during the entire selection process
at the telephone and fax extensions mentioned in the registration form.
Please note that the account number filled in is decisive for the Member
entering the registration. Only the volume traded by that specific Member
(=account number) will be included in the 'performance assessment'. In case you
are responsible for more that one Member and you wish to enter with more than
one company, you must send in one form per company.
Furthermore, please fill in one form per ECC to exclude misunderstandings in
case you wish to register for more than one ECC.
You can only participate in the procedure for selecting Primary Market Makers
and Competitive Market Makers if you submit this form on time (see Euronext
Announcement). After submitting this form you will receive detailed information
on the selection procedure, but you will be under no obligation to participate
in the selection procedure.
Application for Euronext Liquidity Provider
Member:
Account number:
Authorized Representative 1:
Telephone number 1:
E-mail address 1:
Fax number 1:
Authorized Representative 2:
Telephone number 2:
E-mail address 2:
Date:
Clearing Member:
Above mentioned Member hereby registers for the selection procedure for the
following capacity at Euronext Amsterdam Derivative Markets:
o Primary Market Maker
o Competitive Market Maker
For the ECC containing the classes:
Euronext Amsterdam Derivative Markets has decided that the current setting of 2
messages per second shall be maintained. The mass quote facility will differ
from class to class.
In the trading system of Euronext Amsterdam Derivatives Markets, Switch, the LP
role is linked to a new user-id. Each PMM user-id will be linked to one or more
classes to trade.
LPs may choose - as long as they have enough permits - whether to use one user
to quote different classes or to use one user-id per class. The mass quote
functionality is user-id-defined. For example: if you choose for scenario B (see
overview) the first user will not be able to use the mass quote functionality in
the classes B and C.
You are hereby requested to reply which scenario you want to have set up for
your company. For the ECC consisting of the ET1 class only one user-id will be
allowed.
Please fill in the name of your company and amount of user-id's of your
preference. For example:
KPN TPG WES
1 2 3
KPNO WESO
4 4
KPNX
4
Means that you would prefer one user-id for each of the classes KPN, TPG and
WES. Beside that you would like to have only one separate user-id for the three
less liquid classes KPNO, KPNX and WESO.
Member:
â ECC: ASML-HGM-VPK
ASML HGM VPK
â ECC: BUHR-GTN-NUM-VNU
BUHR GTN NUM VNU
â ECC: DSM-LAU-UN (UNO)
DSM LAU UN
UNO
Please note that the allocation of user-id's can be changed any time with
exception of the following periods:
- Wednesday before the concerning production test (see announcement) 17:00 until
Monday after the same test;
- Wednesday before the start of the concerning ECC on screen trading at 17:00
until Monday after introduction on screen.
After introduction on screen it will take two trading days for your change(s) to
become effective.
Signature of Authorized Representative
Appendix 4
Order Form Switch Customer Technical Support
Date: AEX-Q NR :
.
To be filled in by Euronext agent
IP numbers will be automatically distributed through your Technical contact
person at the servicedesk when the line is up and configured.
Contact Person
Name:
Organization:
Address:
Zip Code: City:
Floor: Room number:
Phone number: Fax number:
E-mail address:
(The floor- and room numbers are very important for the proper installation)
Technical contact person
Name:
Phone number: Fax number:
E-mail Address:
Provider
o KPN o MCI Worldcom o Colt o Euronet
Redundant Network:
o KPN o MCI Worldcom o Colt o Euronet
Pop availability
o Yes o No o Will be installed
Distance
Distance from POP to workplace meter
Cabling
FTP present o Yes o No
Interface Type
o X21 o V35
Router
o Yes o No
Line information
Amount of lines:
Line speed:
o 64 kb o 128 kb o 256 kb o Other kb
Invoice address
Organization:
Address:
Zip code: Number:
Phone number: Fax number:
Name applicant Signature applicant
Einde bericht.
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