Xetra
Xetra (ETR, market identification code XETR) is an exchange trading platform of the Frankfurt Stock Exchange (FWB). With a market share of 75 percent in share trading and exchange-traded funds (ETF), it is the most important stock exchange in Germany (as of 2020). The name is an acronym for Xetra e x change e lectronic tra ding ( "electronic trading").
The Xetra trading venue
In 2015, 90 percent of all shares traded on German stock exchanges were carried out on the Xetra trading venue. In the DAX stocks, Xetra has a European market share of 60 percent. The trading hours are every trading day from 9 a.m. to 5.30 p.m. The prices on Xetra are the basis for calculating the best-known German stock index DAX .
Over 200 trading participants from 16 European countries as well as from Hong Kong and the United Arab Emirates are connected to one another via the central computer in Frankfurt am Main .
Due to high turnover ( liquidity ), a security order on the Xetra trading platform is executed quickly and at market prices. This principle is also supported by liquidity donors (so-called designated sponsors ). These undertake to set binding buying and selling prices ( quotes ) on an ongoing basis , thus ensuring additional liquidity and fair prices.
Since all exchange trading is carried out electronically, orders may be partially executed on the Xetra trading venue. Banks and online brokers do not incur any additional transaction costs due to same-day partial executions. Most providers do not charge their customers for partial execution.
Protection mechanisms and market surveillance
To improve price continuity and to avoid mistrades , protective mechanisms have been introduced at the Xetra trading venue. These include the volatility interruption ( volatility interruption ), the market order interruption and the liquidity interruption . Trading on the Xetra trading venue follows clear rules that apply equally to all trading participants. The independent market supervision consists of the Trading Surveillance Office ( HÜSt ), the stock exchange supervisory authority of the Hessian Ministry of Economics, Transport and Regional Development and the Federal Financial Supervisory Authority ( BaFin ).
Admission of Securities
Admission of securities to the Frankfurt Stock Exchange and its Xetra and Frankfurt Stock Exchange does not require a separate admission. Newly listed securities on the Xetra trading venue are automatically included in trading on the Frankfurt Stock Exchange.
The sponsoring companies of the Frankfurt Stock Exchange are Deutsche Börse AG and Börse Frankfurt Certificates AG .
Trademark rights
The trading system was designed as a branded product from the start. The designed logo and the word mark are protected as a trademark of Deutsche Börse AG.
The trading technology from Xetra
Xetra's trading technology replaced IBIS on November 28, 1997 . Proponents cited execution prices in line with the market, low transaction costs, equality, location independence and anonymity of trading partners. The main challenges were system stability, system availability, scalability and latency, as well as increasing market activity over the long term.
development
Xetra's trading technology was already positioned as a branded product in the development phase . The aim was to better position Xetra with trading participants and the public and also to be able to license it to other exchange operators. The conception and IT implementation of the Xetra trading technology was based on the Eurex trading technology and was carried out by Andersen Consulting (now Accenture ) and Deutsche Börse Systems on behalf of Deutsche Börse AG .
Cooperation partners worldwide
Deutsche Börse AG today operates two trading venues based on Xetra trading technology in the cash market division of Deutsche Börse Cash Market at its Frankfurt am Main location :
- Xetra (XETR) is the reference market for German stocks and exchange-traded funds (ETF). The following are also tradable: Active Exchange Traded Funds, Exchange-traded Commodity and Exchange Traded Notes
- Börse Frankfurt (XFRA) , with the derivatives exchange Börse Frankfurt Certificates AG (formerly Scoach ) migrated on April 28, 2008 . On May 20, 2011, the Frankfurt Stock Exchange was migrated to the Xetra trading technology.
Xetra's trading technology has also been used on the Vienna Stock Exchange since November 1999 . In December 2010, the Vienna Stock Exchange introduced Xetra on the Ljubljana Stock Exchange ; the Zagreb Stock Exchange followed in July 2017. The trading technology is also used on the Prague Stock Exchange (since November 2012), the Budapest Stock Exchange (since December 2013), the Irish Stock Exchange (since 2000), and the Bulgarian Stock Exchange (since 2008 ), on the Malta Stock Exchange (since 2012) and on the Cayman Islands Stock Exchange (since 2013). Eurex Bonds, the Deutsche Börse trading platform for government bonds, uses Xetra trading technology. The New Generation Trading System of the Shanghai Stock Exchange was also developed on the basis of Xetra's trading technology.
The history of the development of Xetra's trading technology
| Xetra release |
date | description |
|---|---|---|
| 1.0 | June 10, 1997 | Only the release of the graphical Xetra front end to allow acclimatization. The backend was still IBIS . |
| 2.0 | November 28, 1997 | Commissioning of the Xetra backend. |
| 2.1 | March 30, 1998 | Minor changes to the frontend and backend. |
| 3.0 | October 12, 1998 | Introduction of intraday auctions, designated sponsors and stop orders. Introduction of bond and OTC trading as well as reduction of the minimum order sizes. |
| 3.1 | May 30, 1999 | General improvements in functionality (including extended volatility interruption, maximum order validity 90 days), ability to determine the first price of an IPO. |
| 4.0 | April 17, 2000 | Possibility to trade with warrants, prepared for evening trading, improved auction transparency, several clearing accounts possible. |
| 5.0 | October 1, 2000 | Introduction of iceberg and market-to-limit orders as well as block crossing (trading of larger blocks). |
| 6.0 | April 30, 2001 | Functionality for “Equity Central Counterparty” , intraday closing auction . |
| 6.5 | November 19, 2001 | Change from C ++ to Java-API, new Java-based frontend. |
| 7.0 | August 20, 2002 | Introduction of Xetra BEST, abolition of the C ++ frontend, increased performance, possibility of calculating increased usage fees in the event of excessive system load. |
| 7.1 | January 3, 2005 | Market model for EEX (manual intraday auction), introduction of subscription rights trading, possibility to display the last trades. |
| 8.0 | April 23, 2007 | Increase in speed through split market data streams and increased caching, better transparency. |
| 8.1 | October 22, 2007 | Ensuring MiFID conformity, especially for OTC transactions processed via Xetra. |
| 9.0 | April 28, 2008 | Introduction of certificate trading, minimal changes to the front end with a few small changes in the implemented features |
| 9.1 | November 24, 2008 | Introduction of trading in actively managed funds via Xetra, new order type midpoint order, general multi-currency capability |
| 10.0 | December 18, 2008 | Changes to the market models, minor changes to the API |
| 10.1 | October 1, 2009 | Introduction of Xetra International Market |
| 11.0 | June 28, 2010 | Changes to the market models, minor changes to the API |
| 11.1 | May 9, 2011 | Migration of all stocks and bonds that were previously tradable via the Frankfurt Stock Exchange |
| 12.0 | November 28, 2011 | Interface for FIX protocol , multi-exchange capability, new order types "Strike Match" and "Top-of-the-Book", possibility of executing bilateral trades via the order book |
| 13.0 | November 26, 2012 | New order types, improved risk management of OTC transactions, more efficient access to the Xetra trading system |
| 14.0 | September 30th, 2013 | Adjustments within the framework of the German high-frequency trading law, introduction of system-based risk management for market makers, expansion of the FIX gateway |
| 15.0 | 1st December 2014 | Extended functions in risk management |
| 16.0 | November 30, 2015 | Lower latency, introduction of the volume discovery order for MiFID II -compliant block trading, quote request for ETF orders, new optional functionality "Self Match Prevention" |
Incidents
On April 14, 2020, securities trading via Xetra on the Vienna Stock Exchange was canceled from at least 9:30 a.m. to 11:30 a.m. local time (CEST, UTC + 2). The Frankfurt, Prague and Budapest stock exchanges were equally affected. The cause was the Xetra T7 trading system .
See also
Web links
Individual evidence
- ^ Deutsche Börse Cash Market - trading venues. In: www.deutsche-boerse-cash-market.com. Deutsche Börse Cash Market, accessed on April 9, 2016 .
- ↑ Xetra: Xetra market quality. In: xetra.com. Deutsche Börse AG, accessed on June 11, 2020 .
- ^ Definition of "XETRA" . In: Gabler Wirtschaftslexikon . Springer ( gabler.de [accessed December 4, 2017]).
- ↑ Reference market. Deutsche Börse Xetra, archived from the original on April 19, 2016 ; Retrieved April 9, 2016 .
- ^ Xetra. Deutsche Börse Cash Market, accessed on April 9, 2016 .
- ↑ Continuous trading with auctions and designated sponsor. Deutsche Börse Xetra, archived from the original on March 20, 2016 ; Retrieved April 9, 2016 .
- ↑ Mark Ehren: The dirty game of brokers in partial executions - investment - investment strategy - current exchange. boerse.ARD.de, accessed on April 9, 2016 .
- ↑ Protection mechanisms. Deutsche Börse Xetra, accessed on April 9, 2016 .
- ↑ Market supervision. Deutsche Börse Cash Market, accessed on April 9, 2016 .
- ↑ Admission to trading. Deutsche Börse Cash Market, accessed on April 9, 2016 .
- ^ Organization of the FWB. Deutsche Börse Cash Market, accessed on April 9, 2016 .
- ↑ Information on the word / figurative mark "Xetra" in the register of the German Patent and Trademark Office (DPMA)
- ↑ Trading places. Deutsche Börse Cash Market, accessed on April 9, 2016 .
- ↑ All tradable instruments. Deutsche Börse Xetra, accessed on April 9, 2016 .
- ↑ Migration of floor trading on May 23, 2011: Determinations by the management of the Frankfurt Stock Exchange. Deutsche Börse Xetra, archived from the original on February 9, 2016 ; Retrieved April 9, 2016 .
- ↑ Trading hours for the first day of trading on the XETRA trading platform
- ↑ Deutsche Börse and Wiener Börse extend contract on trading technology. Deutsche Börse Cash Market, accessed on April 9, 2016 .
- ↑ deutsche-boerse.com ( page no longer available ) - (PDF).
- ↑ Version overview Xetra (PDF) ise.ie
- ↑ Preview of Xetra 9.0 ( Memento from December 27, 2008 in the Internet Archive ) at deutsche-boerse.com
- ↑ Fund trading from December via Xetra. In: Deutsche Börse. Archived from the original on May 4, 2009 ; accessed on June 11, 2015 .
- ↑ Xontro newsletter (PDF; 66 kB)
- ↑ VALUES API Modification Announcement (PDF; 78 kB) at deutsche-boerse.com
- ^ Xetra International Market ( Memento from January 17, 2010 in the Internet Archive ) at deutsche-boerse.com
- ↑ New market models at deutsche-boerse.com
- ↑ Xetra Release 12.0 ( Memento from January 15, 2013 in the Internet Archive )
- ↑ Xetra Release 16.0. (PDF) Deutsche Börse AG, accessed on July 13, 2015 .
- ↑ Technical malfunction: trading on the Vienna Stock Exchange interrupted. In: ORF.at. April 14, 2020, accessed April 14, 2020 .