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New Eurex Software Release 5.1 Launched Successfully - Eurex Clearing Provides A New, Intra-Day Risk Information Service - Product-specific Upper Limits And An Extended Price Plausibility Check Added

Date 10/06/2002

On Monday, the international derivatives exchange Eurex announced the successful launch of its new clearing software. According to a recent press release, the new Eurex software release 5.1 went live for 430 participants from 17 different countries at the end of May. At the heart of the new Eurex software is the so-called intra-day risk information service tool with which users can call up the latest risk data of relevance to their positions at any time during the trading day. The new service is available to both clearing and trading members. Eurex has also introduced two new functions aimed at improving the security of order input: product-specific upper limits to control the size of unlimited orders and an extended price plausibility check are now available to support Eurex users with their order input.

The new risk information service will greatly facilitate individualised, intra-day risk management, says the world's largest derivatives exchange. With this new service, Eurex provides market participants with an effective tool for the constant reappraisal of their risks. Theoretical price data for the calculation of worst-case scenarios or for the appraisal of clients' and traders' portfolios are also provided.

In addition to this, Eurex Clearing's continuous updating of the expected payment flows from variation margin and option premiums lays the groundwork for efficient cash management as well as increasing transparency with regard to margin requirements and any possible lack of coverage. Security management has also been optimised by the use of real-time information.

The intra-day risk information server is the central component that uses secure Internet lines to send members data relevant to their risk management every 15 minutes. These data packages contain all derivative, bond and repo transactions and positions booked in Eurex Clearing AG together with the current prices and volatilities. These data will be later extended for spot transactions in equities and the relevant positions. The new functions guarantee a high degree of confidentiality and integrity in the handling of sensitive, client-specific clearing data, the derivatives exchange commented.

Eurex has also upgraded its order input by adding two new functions: the system no longer accepts unlimited orders that exceed the upper limit defined for a particular product. The second function is the extended price plausibility check, which is performed automatically by the Eurex system and prevents orders being executed that deviate significantly from current price levels. Users can deactivate the existing price plausibility check, which is something they will not be able to do on the new system. The reference price is the lowest price available on the market for the contract in question at the time of order input.