Eurex vindicated in passive liquidity protection, so far

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By Ross Lancaster
16 Sep 2020

High-frequency traders have fiercely resisted efforts by derivatives exchanges to bring in delaying measures, such as speed bumps, to their venues. But at Eurex, one such passive liquidity programme (PLP) is proving its critics wrong.

In June 2019, Eurex began imposing a millisecond delay on its French and German single-name stock options. It introduced the rule to protect liquidity providers that enter orders and wait to accept other market participants’ prices. The delay gave these providers time to update their options prices if ...

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