Give-up / Take-up

The give-up functionality allows members (CMs/NCMs) to transfer transactions to other members

(CMs/NCMs). The receiving member and the respective Clearing Member must accept the give-up for it to become valid. Only “open” transactions originating on the trading day (current give-up) or the previous 2 trading day (T-2) (historical give-up) may be designated for give-up. The acceptance of transferred transactions is called take-up.

In general all Eurex Exchange Participants are able to perform give-ups and take-ups. Certain rules apply: • „Open“ transactions can be given up from the agent accounts (A1-A9) for all Exchange Participants and

additionally from the principal account (P1/P2) for NCMs only.

• Transactions can be taken up in the agent accounts (A1-A9) and in principal accounts (P1/P2). • Give-ups and take-ups may only be performed for transactions executed on the same trading day

(current give-up) or the previous 2 trading days (historical give-up).

Clearing Members have the possibility to accept or reject the give-ups and take-ups of their NCMs. Depending on the settings in the Member Relationship Overview window acceptance can be performed automatically or manually. Acceptance must take place on the same day as the transaction took place. Clearing Members are enabled to inquire (pending) trades that are designated for give-up or take-up.

If a give-up transaction is not accepted by the end of the Post Late 1 phase (Post-Trading Full Period, where Post Late 1 is not applicable), the transaction remains in the agent account (A1 or P1, where no A account exists) of the original member. However, if a give-up transaction is not fully processed at the end of the day and has not reached the state “Take-Up Accepted” or “Rejected” (no HITT, no historical give-up) it will automatically be re-allocated as a historical give-up on the next day and the existing give-up

information will be retained. There are certain exceptions when an automatic re-allocation isn’t possible, e.g. not enough positions left, expiration of the contract and capital adjustment in that product.

Deleted or rejected give-up transactions also remain in the agent account of the member. Transactions originating from combination orders can only be transferred as single give-up transactions.

Give-up transactions cannot be undertaken for products that are in “holiday” status. No historical give-up is possible the next business day for products that were in the “holiday” status the day before.

NCMs that have no customer business and thus no A1 account are enabled to allocate trades from their P- transaction accounts to another NCM/CM A-transaction accounts (A1-A9). Only in this constellation the transaction fees will not be transferred which means the originating NCM has to pay them.

Eurex Clearing GUI offers two possibilities to give-up trades: either by order or by transaction. When choosing “order” all partial fills belonging to that specific trade will be shown on the Give-up Maintenance –

Order window. In contrast the selection “transaction” causes the display of only the one single transaction

selected in the Give-up Maintenance – Transaction window.

Give-up by order is only possible for A1 accounts, while give-up by transaction is possible for all agent accounts (A1 - A9).

Orders can be entered in the Eurex system with G1 (pre-designated give-up, it is likely that the transaction is given up) or G2 (designated give-up, all necessary information for the give-up are known) to indicate that the transaction should be given up to another NCM/CM. Any trades with G1 orG2 will result in a position in the A1 account until the trade has been taken up.

After a trade has been given up to another NCM/CM, the status of the transaction will be marked with “G” if the acceptance of the CM is carried out manually or with “M” if the acceptance of the CM is carried out automatically. In case of status “G” the trade will not be transferred until the give-up Clearing Member has accepted the give-up and until both the appointed take-up Exchange Member (NCM) and its Clearing Member take-up or accept the trade. The transaction receives the status “T” for take-up after both the take- up Exchange Member (NCM) and take-up Clearing Member have accepted the trade.

Give-up instructions and reference information can be modified as long as the receiving member has not taken the trade.

Status codes:

G Designated give up trade (G2)

M Give up accepted by CM of the give up member (ready for take up) N Taken up trade (pending acceptance by CM of the take up member) T Completed take up

R Rejected give up

U Undesignated give up, give-up instruction deleted P Pre designated (G1)

Give-up/Take-up transactions are handled via the Give-up and Take-up Overview window in the Eurex Clearing GUI. The windows are accessed via the Trade Management menu.

Figure 4-8: Take-up Overview window @X-tract

The Give-up/Take-up Maintenance window is accessed via the Give-up/Take-up Overview window by the give-up/take-up Exchange Member. By setting the Transaction/Order button in the window, the NCM/CM can handle the actions either by transaction (window title Give-up/Take-up Maintenance - Transaction) or by order (window title Give-up/Take-up Maintenance - Order).

4.2.1 Main Reports

Report Description Availability

CB130 Give-up Trades History

Shows all Give-ups in chronological order. Lists all (pre-) designated and rejected Give ups. Give-up trades accepted by recipient are also listed. Shows detailed information on give-up trade histories (including deleted give-up trades)

CMs and NCMs

CB140

Accepted Give- up Trades

Shows all accepted give-up trades. Accepted give-up trades are arranged by currency, recipient, product, series, order number and transaction number. The following totals are calculated:

- Sum of all accepted give-up trades (take-up) in a series by one recipient;

- Sum of all accepted give-up trades (take-up) of a recipient.

CMs and NCMs

CB150 Take-up Trades History

Shows all take-up trades in chronological order. The take-up trades are listed by currency, take-up account, product, series, order number, transaction number and time. The following totals are calculated:

• Sum of all take-up trades • Sum of all pending trades

(give-up) at the end of the day • Sum of all rejected give-up trades.

CMs and NCMs

CB160

Accepted Take- up trades

Shows all accepted take-up trades. Accepted take-up trades are listed by currency, sender, take-up account, product, series, order number and transaction number. The following totals are calculated:

• Sum of all accepted take-up trades in a series for a sender • Sum of all accepted take-up trades for a sender

4.3 Exercise / Assignment