Launched in March, the new service is designed to offer automatic price improvement over Xetra reference market prices.

Retail orders are integrated with institutional ones within the Xetra order book, however, central to the new offering launched in March is are retail-dedicated market makers designed to interact specifically with retail orders, with the aim of provides providing price improvement over the prevailing Xetra best bid and offer (BBO) prices when possible.

If this cannot be achieved, then orders are executed at least at the current Xetra price.

“Given the recent surge of retail investor activity in Germany and other European countries, our new retail execution service addresses the growing demand for efficient capital market access at the right time,” a Deutsche Börse spokesperson told The TRADE.

“This service represents an important milestone in our ongoing efforts to deliver first-class execution services specifically tailored to the needs of retail clients. It will also serve as a launching pad for further innovation in the future.”

Transaction fees for retail executions have been reduced by Xetra, subject to the investor’s bank or broker participating in the service. The service applies to all Xetra trading in equities, ETFs and ETPs.

It is supplemented by a free real-time Level 2 market data offering for ETFs and ETPs, launched in April. Registered private investors have access to Xetra ETF real-time push price data. The new retail data offering also includes real-time order book depth data of all ETFs and ETPs traded on Xetra.

The market data offering is also available to institutions for integration into their services, a spokesperson for Deutsche Börse confirmed.

The new ETF retail trading offering builds on the equities service launched by Xetra last year.

“With our new execution service, we aim to reduce both implicit and explicit execution costs for private investors, ensuring best execution in equities – including German, European and a broad range of foreign stocks – as well as ETFs and ETPs,” a spokesperson for the exchange said.

The post Xetra expands new retail trading offering with ETFs service appeared first on The TRADE.

Euronext accounted for around 30% of the market share at the Close, reporting over €16.6 billion, up from around €2 billion from the day prior. The London Stock Exchange (LSE) took second place reporting €9.5 billion, up from just over one.

Nasdaq’s OMX, Deutsche Borse’s Xetra and the SIX Swiss Exchange took the remaining spots in the top five reporting €8 billion, just under €8 billion and €5 billion respectively. In total the top ten venues accounted for €51.7 billion during the Close yesterday, up from six the day prior.

Yesterday’s rebalance went the wrong way, with developed markets reportedly falling 100 bps and several market makers reportedly flagging trades going the wrong way. The rebalance that took place in November wasn’t much better.

The impact of the wider market has been strongly felt with many firms reporting a lack of liquidity because tracker funds from large passive institutions including Vanguard have bought up everything, sources familiar with the matter have confirmed.

Rebalances take place quarterly to maintain an index and ensure its composition remains updated and stays in line with its methodology.

Hedge funds focused on picking off rebalancing indexes such as Tudor have grown in numbers as of late as the business becomes more lucrative and as the passive market has grown.

The post MSCI rebalance sees closing auction volumes soar by 800% appeared first on The TRADE.

Launched in July last year, A7 is the group’s cloud-based platform which offers access to granular order-by-order market data from Eurex and Xetra.

By providing intraday data on A7, Deutsche Börse said clients will gain more flexibility. Intraday data can be used by market participants to react faster to market developments and to optimise their trading strategies appropriately.

The new offering also allows Deutsche Börse to tap into new client segments.

“Since the launch of our A7 analytics platform last year, we have been continuously working with our clients to understand their needs and support them in the best possible way. The launch of intraday data on the platform is an important milestone in this process and underlines A7’s scalable functionalities,” said Alireza Dorfard, head of data services at Deutsche Börse.

The A7 platform provides market participants with nanosecond-precise market data in an environment that can be implemented directly into clients’ front-end systems, offering insights into market situations and microstructures.

It also allows clients to access advanced analytics based on Deutsche Börse’s market data. Furthermore, A7 supports clients in improving their trading efficiency and alpha generation, as well as developing and testing execution algorithms. 

The post Intraday market data added to analytics platform at Deutsche Börse appeared first on The TRADE.

Named Xetra Trade-at-Close, the mechanism will go live on 24 November and will allow market participants to enter orders on Xetra after the closing auction has ended.  All instruments on Xetra including blue chips, small and mid-caps, ETFs and ETPs can be traded through the tool.

The extended window for trading will for a maximum of 10 minutes after the closing auction ending at 17:45 CET and during the session matching will take place continuously at a fixed and single price with time priority. 

Orders not filled in the closing auction will automatically be transferred into the Trade-at-Close phase on an opt-in basis. New orders can also be entered during Trade-at-Close and traders can opt-in at the trader and order level. 

Deutsche Börse said that participants will benefit from trading at a fixed price without participating in the price formation process in the closing auction, while gaining access to additional liquidity by closing out positions before the end of the trading session.

“Closing auctions are considered a pillar of market stability and investor protection. They allow for the concentration of liquidity, ensuring efficient price formation while considering all relevant information. Xetra Trade-at-close meets the market’s rising demand to execute orders at the end of the trading day,” said Michael Krogmann, board member of the Frankfurt Stock Exchange, part of Deutsche Börse. 

Deutsche Börse is the latest exchange operator to launch a tool aimed at the closing auction as trading volume across Europe continue to migrate towards the close.

Last month, the London Stock Exchange Group’s Turquoise went live with its own closing auction mechanism, Trade At Last. Similar to Deutsche Börse, Trade At Last allows traders to submit firm and conditional orders for an additional 10 minutes after the closing auction has completed its price formation process and published the official closing price at 4.35 pm.

The post Deutsche Börse launches Xetra market close mechanism appeared first on The TRADE.

The new platform will give clients access to data from Eurex and Xetra traded instruments to maximise trading efficiency and alpha generation. It includes historical data via the cloud on all instruments traded through both venues, with content updated daily.

“Our innovative A7 platform offers market participants nanosecond-precise market data without the burden of their own data warehousing,” said head of market data and services at Deutsche Börse, Alexandra Hachmeister.

“It provides access to tailored metrics based on full depth order books, market data messages, reference data, and other individual sources. Clients can quickly grasp market situations, easily drill down into the market microstructure, and alter their own trading strategies accordingly.”

Flexible analytical tools are also available to clients via the new A7 platform enabling traders to gain advanced market insights. 

The launch of A7 follows Deutsche Börse’s recent partnership with Chinese data provider, Wind. Deutsche Börse and Wind signed a memorandum of understanding to form a connection between Deutsche Börse’s data and portfolio’s and Wind’s institutional network.

The MoU will permit easier access to European markets for domestic institutional investors in China, based on market data and services offered by Deutsche Börse and its derivatives exchange Eurex.

The post Deutsche Börse launches online analytics platform with Eurex and Xetra data appeared first on The TRADE.

The German exchange group said that the service, known as Xetra EnLight, provides cleared and off-book trading in the cash market, enabling members to execute large-in-scale trades via RFQ in equities, exchange-traded funds (ETFs) and exchange-traded products (ETPs).

The central counterparty (CCP) clearing of transactions will reduce settlement and counterparty risks, according to Deutsche Börse, by adding settlement netting of on- and off-order book trades, failed trades management and client asset protection.

“Our new RFQ service complements our existing offering for block trading. The process is designed to achieve a high degree of automation, while at the same time reducing settlement and counterparty risks,” said Michael Krogmann, management board member of the Frankfurt Stock Exchange. “Clients are able to use our new RFQ service out of the box without the need for additional connectivity.”

Krogmann added that the Xetra EnLight RFQ block trading service already has support from several European market making firms, including Flow Traders, which commented that the Xetra EnLight service can offer significant benefits to the ETF market.

“As an international market maker, Flow Traders welcomes the opportunity for more buy-side participants to directly interact with its quotes,” said Folkert Joling, chief technology officer at Flow Traders. “This new functionality combines the best of direct pricing and the CCP process in one of Europe’s leading ETF markets.”

European market makers Optiver, Susquehanna, Mediobanca and Oddo Seydler will also support the service, Deutsche Börse said, after trading using Xetra EnLight officially began this morning.

The post Deutsche Börse introduces cleared RFQ block trading via Xetra appeared first on The TRADE.

The exchange operator informed market participants via a statement that it was experiencing a “technical problem” and “failure” with Xetra, which it was investigating and looking to resolve. No further information was given by the exchange on the nature of the technical issues.

“Due to technical problems with the trading infrastructure trading start will not take place according to the usual trading schedule,” the exchange also said in a Twitter post this morning.

Eurex has also reported issues with its Eurex T7 FX  trading systems this morning, also citing technical issues which it is looking to resolve as soon as possible.

The glitch has been felt across the industry this morning, with UBS multilateral trading facility (MTF) advising in a statement that trading in all instruments with the Xetra market had been disabled on its platform.

“Trading in these instruments will resume on UBS MTF as soon as the instruments are back in continuous trading on the reference market,” it said.

This is the second time Deutsche Börse has been forced to delay the opening of its Xetra market this year, after experiencing technical issues on 16 March.

Deutsche Börse reported trading volumes on its cash markets, including Xetra, Börse Frankfurt and Tradegate Exchange totalled €1.29 trillion in the first nine months of this year, up 20% compared to the same period last year.

Total monthly trading volumes in September this year reached €130.6 billion compared to €117.7 billion in September last year, with €120.5 billion of that attributable to its Xetra market.

The post Deutsche Börse forced to delay Xetra opening due to technical issue appeared first on The TRADE.

Deutsche Boerse has launched a new market data feed to provide further insight into its Xetra order book.

CEF ultra+ Xetra Order by Order provides a high performance data feed for users at low latency with granular information on all trading instruments, said Deutsche Boerse.

The data includes un-netted order-by-order public market data, full order book depth, product and instrument state information as well as quote and cross requests.

Hartmut Graf, head of data services at Deutsche Boerse, explained the new feed was developed for the exchange group’s algo community, whose strategies and processes are based on speed and the completeness of information.

“The granular data is particularly beneficial for buy- and sell-side customers, whose algorithms monitor trading processes.

“By processing highly detailed information on individual orders, these algorithms support trading decisions,” he added.

In February, Deutsche Boerse confirmed it will close its dark pool Xetra MidPoint in summer this year, in favour of a new system ahead of MiFID II’s large-in-scale waiver.

“Xetra MidPoint today supports dark trading for all trade sizes. With the volume thresholds of 4% and 8% in the reference price waiver we see limited potential for this transparency waiver.

“That’s why we will no longer offer MidPoint after our technology upgrade to a new system in summer 2017. We trust that our existing auction mechanism as well as our Volume Discovery Order from 2018 onwards are viable options to execute large-in-scale orders under MiFID II,” a spokesperson said at the time. 

The post Deutsche Boerse develops data feed for Xetra appeared first on The TRADE.

Deutsche Boerse’s Xetra business suffered a 10% decline in net revenues in 2016 compared to the year prior, as the exchange operator prepares to close its dark pool.

Xetra saw overall revenues fall from €185 million to €165 million in 2016, with trading sales suffering a 15% annual decline.

The drop follows news of Deutsche Boerse’s decision to close its Xetra MidPoint dark pool in the summer of this year. 

The exchange told The TRADE it would be implementing a new trading system in anticipation of MiFID II‘s large-in-scale waiver and there would be no reason to continue dark pool trading for small-size transactions.

“Xetra MidPoint today supports dark trading for all trade sizes. With the volume thresholds of 4% and 8% in the reference price waiver we see limited potential for this transparency waiver.

“That’s why we will no longer offer MidPoint after our technology upgrade to a new system in summer 2017. We trust that our existing auction mechanism as well as our Volume Discovery Order from 2018 onwards are viable options to execute large-in-scale orders under MiFID II,” a spokesperson said.

Deutsche Boerse reported net revenues across the business increased 8% in 2016 to €2.4 billion, compared to €2.2 billion the year prior.

Recent statistics revealed the exchange’s potential merger with the London Stock Exchange (LSE) could cost both firm’s up to £304 million, with Deutsche Boerse set to incur £129 million of the costs.

LSE and Deutsche Boerse confirmed plans to merge in February this year. If completed, the merger would create one of the largest exchange groups in the world.

The post Deutsche Boerse Xetra suffers trading decline appeared first on The TRADE.

Vienna Stock Exchange has extended its trading technology contract with Deutsche Boerse until 2021.

The exchange will continue using Deutsche Boerse’s trading technology and infrastructure for another 6 years, according to a statement released this morning.

Cash market trading on Vienna Stock Exchange has been based on Deutsche Boerse’s Xetra system since November 1999.

The contract extension confirms Vienna Stock Exchange’s cash market will continue to operate with Deutsche Boerse‘s technology.

Michael Buhl, member of the management board of Wiener Boerse AG and its holding CEESEG AG, said: “Deutsche Boerse offers an extremely reliable, high-performance and well-recognised trading technology.

“The long-standing relationship has proven successful for both the Vienna Stock Exchange as well as other exchanges with whom we are cooperating in Central and Eastern Europe.”

Managing director Deutsche Boerse market data and services, Holger Wohlenberg, added: “This extension of the agreement with Vienna Stock Exchange is another re-confirmation for the quality and reliability of our IT services and technology solutions.

“Vienna Stock Exchange and its co-operation partners in Central and Eastern Europe will continue to benefit from our continuously improved cash market technology and a broad international network of market participants.”

The Vienna Stock Exchange considered selling its smaller Central and Eastern European exchanges, having struggled with revenues in 2014.

Michael Buhl, CEO of CEESEG, said at the time: “Although there was no significant upturn in the economies of Central and Eastern Europe in the past year, we defended our position as the largest stock exchange group in Central and Eastern Europe and were able to keep our earnings stable.”

CEE Stock Exchange sold Ljubljana Stock Exchange and Budapest Stock Exchange last year, following plans to focus on providing IT and data services.  

The post Vienna confirms it will stick with Xetra tech until 2021 appeared first on The TRADE.