DB Turns Xetra into a Cross-Exchange Trading Platform
November 28, 2011
Deutsche Boerse Monday installed a new version of trading software that will allow orders placed through its Xetra system to work across multiple markets.
The 12th edition of the exchange operator's Xetra platform also promises “innovative order types,” as well as higher speed and efficiency to market participants, in the estimate of Rainer Riess, Managing Director of Xetra Market Development.
The new order types include “strike match” and “top of book” options.
The “strike match” order bridges the Xetra platform and that of Eurex, Deutsche Boerse’s derivatives marketplace.
According to Deutsche Boerse, the strike match order reduces “pin risk” for participants who trade in both markets.
The top of the book order, by contrast, enables trading participants to ensure that the order is either placed at the top of the order book or rejected, the exchange operator said.
With the request, Deutsche Börse is enabling bilateral orders previously executed off-exchange to be executed in the Xetra order book.
The multi-exchange capability facilitates, among other things, the connection of other stock exchanges to the Xetra system and improves flexibility in terms of tradable instruments and trading hours.
The Xetra system is used by many stock exchanges, such as those in Vienna, Dublin, Sofia, Ljubljana and, beginning next summer, Malta.
A completely new feature is Xetra FIX Gateway, a standardiszd interface for trading participants which considerably improves technical access to the Xetra trading system.
Deutsche Boerse aims to complete its planned merger with NYSE Euronext shortly after the start of the new year. NYSE Euronext employs a different trading platform.
