Germany Waives Physical Presence Rule for Foreign Regulatory Market Makers

What Changes Under the New Legislation?

Germany has enacted new legislation that removes a key barrier for third-country Regulatory Market-Makers (RMMs), allowing them to operate on German regulated platforms without establishing a local entity or viewking individual exemptions. The reform forms part of the Financial Centre Promotion Act, known as the Standortfördergesetz.

Under the updated framework, RMMs based outside the European Union are no longer required to set up a physical presence in Germany in order to provide liquidity on venues such as Eurex. The change takes effect immediately and is designed to streamline access to euro-denominated derivatives markets.

Previously, non-EU firms faced operational and legal hurdles that limited participation in centrally regulated German markets. By removing the entity and exemption requirements, the new structure lowers the threshold for overseas firms viewking to act as market makers.

Why Does This Matter for Eurex and EU Derivatives Markets?

The reform is expected to broaden the pool of liquidity providers on German platforms. For Eurex, Europe’s largest derivatives venue, the measure may expand international participation at a time when European markets are competing more aggressively for global order flow.

Robbert Booij, chief executive of Eurex, described the reform as a structural improvement in access conditions. “This is a landmark development that directly reflects our long-term strategy of lowering access barriers and boosting liquidity,” he said.

He added: “By removing a significant regulatory hurdle, we are to access our platform. This is not just a win for Eurex, but for all market participants who will benefit from more efficient and competitive markets.”

Eurex said it is working with firms across the UK, Switzerland, North America, and Asia to assist them utilize the new framework. The platform views the legislative change as part of a broader effort to strengthen Germany’s standing within the .

Investor Takeaway

How Does This Fit With Eurex’s Broader Access Strategy?

The legislative update follows other access-focused initiatives by Eurex. In November 2025, the platform introduced a Sponsored Access model that allows existing members to extend trading access to their own end clients through their memberships.

Under that arrangement, members can act as sponsors, granting clients direct connectivity to and its broader infrastructure without requiring each client to become a direct platform member. The objective is to widen participation among trading firms that may not viewk full membership status.

Combined with the new RMM framework, these measures point toward a more open access model in which infrastructure providers handle regulatory and operational complexity while international firms contribute liquidity.

What Are the Market Structure Implications?

For , the removal of local establishment requirements reduces compliance friction and capital deployment tied to maintaining a German presence. That may make participation in euro-denominated futures and options more commercially viable for firms operating primarily from the UK, Switzerland, the United States, or Asia.

For European markets more broadly, the change supports competition among financial centers by aligning Germany’s rules more closely with other major jurisdictions that do not require a domestic footprint for certain cross-border liquidity activities.

While the reform does not alter clearing, margining, or prudential requirements for market makers, it simplifies the entry process. In practical terms, access becomes a regulatory question rather than an infrastructure build-out exercise.

As derivatives volumes remain sensitive to liquidity depth and cross-border participation, the ability of non-EU firms to enter German markets without structural reorganization may influence order book depth in benchmark contracts listed on Eurex.

Investor Takeaway

The Financial Centre Promotion Act places Germany among the European jurisdictions easing procedural requirements for international participants. Whether this translates into measurable volume growth will depend on how rapidly overseas firms adopt the revised framework and allocate capital to euro products.