Xetra

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Xetra is Deutsche Boerse's electronic trading platform which runs its cash and derivatives exchanges and serves as the trading system for multiple exchanges in Europe and Asia.

The latest version of Xetra called T7 was built by Deutsche Boerse in-house and has been the platform for Eurex since 2013 and for the Frankfurt Stock Exchange since July 2017. About 1,000 international equities and 1,500 exchange traded products such as ETFs, ETCs and ETNs are traded on Xetra.[1]

The Xetra trading venue

In 2015, 90 per cent of all trading in shares at all German exchanges was transacted through the Xetra trading venue. With regard to DAX listings, Xetra has 60 per cent market share throughout Europe.[2] Trading times on trading days are from 9.00 a.m. to 5.30 p.m.[3] The prices on Xetra serve as the basis for calculating the DAX, the best-known German share index.

Over 200 trading participants from 16 European countries, plus Hong Kong and the United Arab Emirates, are connected via Xetra servers in Frankfurt.[4]

Protective mechanisms and market surveillance

With a view to improving the continuity of prices and avoiding mistrades, Xetra has put several protective mechanisms in place. These include volatility interruption, market order interruption, and liquidity interruption measures.[5] Trading on the Xetra trading venue is governed rules that apply equally for all trading participants. Independent market surveillance is made up of the Trading Surveillance Office (HÜSt), the Exchange Supervisory Authority attached to the Hessian Ministry of Economic Affairs, Transportation, and Regional Development, and the Federal Financial Supervisory Authority (BaFin).[6]

Admission of securities

Trading securities on the Frankfurter Wertpapierbörse (FWB, Frankfurt Stock Exchange) and its trading venues Xetra and Börse Frankfurt does not require separate admission. Newly listed securities at the Xetra trading venue are automatically included in Börse Frankfurt trading.[7]

The organizing companies of the Frankfurter Wertpapierbörse (FWB, Frankfurt Stock Exchange) are Deutsche Boerse AG and Börse Frankfurt Zertifikate AG.[8]

Trademarks

Xetra is a registered trademark of Deutsche Boerse AG.[9]

The trading technology of Xetra

Development

Xetra replaced the IBIS trading platform at Deutsche Borse on November 28, 1997. [10]

Deutsche Boerse Group's Xetra trading for cash trading runs on the T7 platform, beginning in July 2017, the same system which runs the Eurex derivatives trading engine, since 2013 and its subsidiaries the European Energy Exchange, or EEX and Eurex Bonds, Eurex Bonds, the Deutsche Boerse trading platform for government bonds.[11]

Deutsche Boerse touted several benefits to the T7 system, including reduced latency, a harmonized cash and derivatives system, and easier and quicker updates and regulatory changes.[12]

Worldwide cooperation partners

Through its Deutsche Boerse Cash Market business section, Deutsche Boerse AG in Frankfurt/Main now operates two trading venues based on the trading technology of Xetra:[13]

  • Xetra (XETR) is the reference market for German equities and exchange traded funds.[2] Active exchange traded funds, exchange traded commodities and exchange traded notes can also be traded. Roughly 1,000 international equities and 1,500 exchange-traded products are offered on Xetra.
  • Börse Frankfurt (XFRA), with the Börse Frankfurt Zertifikate AG (formerly Scoach) derivatives exchange, which migrated on April 28, 2008. The Börse Frankfurt trading venue was migrated to the trading technology of Xetra on 20 May 2011. It migrated the T7 platform in July 2017.

Xetra has also been used by the Vienna Stock Exchange since November 1999 and it migrated to T7 in July 2017.[14]

TheVienna Stock Exchange operates Xetra on four additional stock exchanges in the region (Budapest Stock Exchange and Ljubljana Stock Exchange since December 2013, Prague Stock Exchange since November 2012 and Zagreb Stock Exchange since 2016.[15][16]

The trading technology also has been in operation at the Prague Stock Exchange since November November 1999, the Bulgarian Stock Exchange since 2008, the Malta Stock Exchange since 2012 and the Cayman Islands Stock Exchange since 2013.[17]

The Irish Stock Exchange which has been running on Xetra since 2000, went live on the T7 platform in July 2017.[18]

The Shanghai Stock Exchange was also developed using Xetra technology.[19]

Xetra's T7 platform is also the trading technology used by the Bombay Stock Exchange.

History of the development of the Xetra trading technology

Xetra Release Release date Description
1.0 10. June 1997 Release of the Xetra GUI frontend only, to enable the familiarisation process. The backend was still IBIS.
2.0 28. November 1997 The Xetra back-end goes operational.
2.1 30. March 1998 Minor adjustments to the frontend and backend
3.0 12. October 1998 Introduction of intraday auctions, Designated Sponsors, and stop orders. Introduction of bond and OTC trading and lowering of minimum order sizes
3.1 30. May 1999 General improvements to functionality (incl. extended volatility interruption, maximum order validity 90 days), pricing of an IPO possible for the first time
4.0 17. April 2000 Possibility of trading warrants, preparation for evening trading, improved auction transparency, several clearing accounts possible
5.0 1. October 2000 Introduction of iceberg and market-to-limit orders, as well as block crossing
6.0 30. April 2001 Functionality for the Equity Central Counterparty, intraday closing auction
6.5 19. November 2001 Change over from C++ to Java API, new Java-based frontend
7.0 20. August 2002 Introduction of Xetra BEST, abolition of the C++ frontend, enhanced performance, calculation of increased user fees in the event of possible excessive system load
7.1 3. January 2005 Market model for EEX (manual intraday auction), introduction of subscription rights trading, display of last trades possible
8.0 23. April 2007 Greater speed through split market data streams and increased caching, better transparency
8.1 22. October 2007 MiFID conformity assured in particular with regard to OTC trades executed via Xetra
9.0 28. April 2008 Introduction of certificates trading, minor changes to the front-end and a few small changes to the implemented features
9.1 24. November 2008 Introduction of trading in actively managed funds on Xetra, new “MidPoint Order” order type launched, basic multi-currency capability
10.0 18. December 2008 Changes to the market models, minor changes to the API
10.1 1. October 2009 Introduction of Xetra International Market
11.0 28. June 2010 Changes to the market models, minor changes to the API
11.1 9. May 2011 Migration of all shares and bonds previously tradable via Börse Frankfurt trading venue
12.0 28. November 2011 Interface for FIX protocol, multi-exchange capability, new order types “Strike Match” and “Top of the Book” introduced, execution of bilateral trades now possible through the Order Book
13.0 26. November 2012 New order types, improved risk management for OTC trades, more efficient access to the Xetra trading technology
14.0 30. September 2013 Adjustments in line with the German High Frequency Trading Act, introduction of system-based risk management for market makers, expansion of the FIX Gateway
15.0 1. December 2014 Expanded risk management functions
16.0 30. November 2015 Lower latency, introduction of the “Volume Discovery Order” for block trading in conformity with MiFID II, quote request for ETF orders, new optional “Self-Match Prevention” functionality 17.0 July 2017 Deutsche Boerse migrates its cash market onto the T7 platform, thus consolidating its securities and derivatives trading technology onto one trading architecture.

External links

References

  1. New T7 trading technology goes live on Xetra. Deutsche Boerse.
  2. 2.0 2.1 Deutsche Boerse Xetra - Reference Market. Xetra.
  3. Deutsche Boerse Xetra - Trading information. Xetra.
  4. Deutsche Boerse Xetra - Xetra worldwide. Xetra.
  5. Deutsche Boerse Xetra - Protective mechanisms. Xetra.
  6. Deutsche Boerse Cash Market - Market Surveillance in Germany. Deutsche Boerse Cash.
  7. Deutsche Boerse Cash Market - IPO Line Going Public. Deutsche Boerse Cash.
  8. Deutsche Boerse Cash Market - Organisation of the WB. Deutsche Boerse Cash.
  9. Xetra. Deutsche Boerse Xetra - Trademarks.
  10. Xetra Trading Platform. Deutsche Boerse AG.
  11. T7 trading architecture Xetra goes T7. Xetra.
  12. Deutsche Boerse Engages T7 For Cash. Securities Lending Times.
  13. Deutsche Boerse Cash. Deutsche Boerse Cash Market - Trading Venues.
  14. Vienna Stock Exchange launches next-generation T7 trading technology. Vienna Stock Exchange.
  15. Ljubljana Stock Exchange Uses Deutsche Börse’s Xetra System - Vienna Stock Exchange Links Slovenian Stock Exchange To The Xetra Network. Press Release.
  16. Deutsche Boerse Cash. Deutsche Boerse Cash Market - Start of Zagreb Stock Exchange (ZSE) on Xetra® Vienna, information about change of Config ID for ETS, distribution and installation of optional update kit and publication of documents.
  17. Malta Stock Exchange extends Deutsche Börse tech deal. Finextra.
  18. Irish Stock Exchange launches new T7 trading technology. Irish Stock Exchange.
  19. Deutsche Boerse Cash. Deutsche Boerse Cash Market - Deutsche Boerse and Vienna Stock Exchange extend trading technology agreement.