Which of the following is true about TES trades?

TES trades, short for Trade Execution Services, play a unique role in the Eurex trading environment. The statement regarding TES trades can result in an exchange price is accurate because TES is a service that allows traders to execute trades based on pre-agreed prices outside the traditional order book. These trades can be reported and executed at prices that reflect market conditions, providing liquidity and enabling price discovery through transparent trading.

In contrast, while TES trades do have specific contract specifications and are recorded, they may not always be concluded within the central order book like conventional trades. Additionally, while timely execution is important, there’s no strict rule that mandates the completion of these transactions within a three-hour window. This flexibility allows market participants to negotiate terms that suit their needs, further emphasizing the importance of TES trades in the Eurex framework.