Please find below a list of frequently asked questions from our members concerning MiFID II and its impact on Eurex Repo F7. This list will be updated as we get further enquiries and questions from members.
General MiFID II
MiFID II comes into effect on 3rd January 2018.
The main impact for F7 users is the Investment Decision Maker and the F7 Throttling Solution.
Investment Decision Maker
The Investment Decision Maker may be:
• The executing trader
• Another individual (National Id required)
• An algorithm (applies only via the F7 API)
With the entry of any pre-trade action into F7 (e.g. quote, addressed offer, etc.)
The identifier of a natural person responsible for the investment decision (format differs by country, please see RTS22 Annex II).
When the investment decision maker is not the executing trader or an algorithm.
No, Eurex Repo as a trading venue needs to keep records of orders advertised through its system for at least five years, so they can be provided to the competent authority (BaFin) if requested. This information is currently being collected for all F7 traders.
Yes, for GUI users there is a National ID list manager under Tools (this is also supported via the F7 API).
An Investment Decision Maker field has been added to all GUI screens where required. Traders can enter a National Id or check Executing Trader. It is possible to set a general preference per segment in My Preferences.
Yes, GUI users may set a general preference per segment in My Preferences.
Ideally, customers should already enter the correct Investment Decision Maker from the introduction of release 2.4 on 11 September 2017.
If this is not possible, it is strongly recommended that F7 GUI users set their defaults in My Preferences to “Executing Trader” until latest 03 January 2018 when the regulation comes into effect.
All pre-trade requests have been enhanced with new fields for Investment Decision Maker – please see the F7 API Manual for further details.
Eurex Repo’s F7 Throttling Solution
MiFID II requires that all trading venues must introduce a throttling solution to ensure capacity and resilience in extreme market conditions.
• A central throttle for all incoming pre-trade actions entered through all input sources.
• A maximum number of pre-trade actions that can be entered via the F7 GUI Position Board.
• A limit to the number of F7 API Master Data requests over a given timeframe.
The market status window is an indication regarding the current technical availability of the trading system. It indicates whether news board messages regarding current technical issues of the trading system have been published or will be published shortly.
We strongly recommend not to take any decisions based on the indications in the market status window but to always check the production news board for comprehensive information on an incident.
An instant update of the Market Status requires an enabled up-to date Java™ version within the browser.