Deutsche Börse Announces Price Model for the Pan-European Trading Segment “Xetra International Market”
Attractive transaction fees for European equities trading/ Special incentive model for supplying liquidity/ Efficient clearing via Europe’s largest central counterparty, with settlement in the respective domestic market
Deutsche Börse is promoting a price model for its pan-European trading segment “Xetra International Market” (XIM) that offers a considerable incentive to supply liquidity. Xetra participants that place orders and achieve a certain percentage of the trading volume in their role as liquidity providers will receive payment of 0.36 basis points (equivalent to 0.0036 percent) on the volume executed. For all other orders executed, transaction fees amounting to 0.12 basis points will be incurred. 0.06 basis points will be payable for clearing positions. Of all the trading venues in Europe, Xetra International Market therefore offers the lowest prices for the supply and demand of liquidity. Furthermore, XIM is the only trading platform in Europe offering purely value-based pricing for trading and clearing, i.e. there are no minimum fees.
The new trading segment uses the trusted Xetra infrastructure. Xetra International Market customers therefore benefit not only from the efficiency of one of the leading infrastructures for algorithmic trading on the cash market but also from the security, transparency and integrity that a regulated, monitored and neutral exchange platform with associated clearing provides. Transactions executed on Xetra International Market will be efficiently offset via Eurex Clearing, Europe’s largest central counterparty. Eurex Clearing is a global leader in risk management standards and eliminates counterparty risk. Clearstream forms the interface between Eurex Clearing and the domestic markets enabling it to use the latter’s settlement liquidity.
“The top market quality, the price model aimed at competition and the low set-up costs for Xetra participants will provide an excellent springboard for XIM in pan-European blue-chip trading. As hardly any additional costs will be incurred when operating the system, the new trading segment will enable Deutsche Börse to achieve economies of scale on Xetra and in its clearing house. Thus, we are expecting a sustainable business model for Xetra International Market”, said Frank Gerstenschläger, member of the Executive Board of Deutsche Börse AG and responsible for the cash market.
Xetra International Market will be launched in several stages. Trading and clearing participants, as well as vendors, have been in the simulation phase for the new segment since the beginning of September. In line with the starting phase the new segment will be up and running as of November, when the entire process chain, right up to settlement in the respective domestic market, will be available. Until mid January 2010 each of the European markets (France, Netherlands, Belgium, Spain, Italy and Finland) will successively be activated.
Xetra is a fully electronic trading platform to which 260 banks and brokerage firms in 19 countries are connected. Approximately 400,000 securities are traded using Xetra technology. Xetra is one of the fastest, most efficient and most reliable trading systems in the world. Deutsche Börse is constantly enhancing its in-house system, thus guaranteeing the highest standards in terms of reliability, security, speed, transparency, innovation and cost efficiency.
About Eurex Clearing
Eurex Clearing AG is one of the world’s leading clearing houses and, as a central counterparty, provides services for instruments traded on the Eurex derivatives exchange, the Eurex Bonds and Eurex Repo platforms, the Deutsche Börse cash market (Xetra and trading floor) and the Irish Stock Exchange. Eurex Clearing backs transactions for equities, options, futures, repos and bonds. The clearing services via a central counterparty enable efficient risk management and strengthen the integrity of the financial market. Eurex Clearing AG is a wholly-owned subsidiary of Eurex Frankfurt AG.
As an international central securities depository (ICSD), Clearstream provides services for the securities sector around the world. Based in Luxembourg, the company’s core business is the settlement and custody of international securities. The segment also offers value-adding services such as Global Securities Financing (GSF) and investment services. Moreover, as a central securities depository (CSD), Clearstream provides the infrastructure for downstream services for trading German and Luxembourg securities, as well as international settlement services.
Xetra® is a registered trademark of Deutsche Börse AG.
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