Xetra MidPoint is Europe’s Successful Regulated Platform for Discrete Trading
Major increase in closed Xetra order book activities/ Xetra Release 10.0 improves functionality
Deutsche Börse: Since the introduction of Xetra MidPoint six months ago, trading activities and liquidity in this closed Xetra order book have continuously increased. The daily average number of orders in the last month was around 12,000 – with a peak level of 28,000 orders. The highest daily turnover to date was in the region of €40 million. In Xetra MidPoint, orders are executed at the midpoint of the best bid/ask-spread.
“Market participants are increasingly making use of Deutsche Börse’s offer of trading orders at a neutral trading venue without market impact or conflicts of interest. Xetra MidPoint is the most successful offering in Europe for executing orders fairly and neutrally on an independent and regulated platform. We expect more success when we introduce Minimum Acceptable Quantity in June,” said Rainer Riess, Managing Director of Xetra Market Development at Deutsche Börse.
One feature of Xetra Release 10.0, which Deutsche Börse is due to introduce on 8 June, is that it will improve the functionality of Xetra MidPoint. Minimum Acceptable Quantity will make Xetra MidPoint more attractive for large-volume orders. Market participants can define a minimum quantity for each individual order below which it should not be executed. Xetra MidPoint can also be used for all order sizes. The previous minimum volumes of €25,000 in DAX securities and €10,000 in all others are to be abolished. This makes Xetra MidPoint even more interesting for most small orders in algorithmic trading.
Xetra is one of the fastest, most efficient and most reliable trading systems in the world. Approximately 400,000 securities are traded using Xetra technology. Xetra offers the highest liquidity and transparency to more than 250 European banks and brokerage firms from 18 countries. 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 Xetra MidPoint
Xetra MidPoint enables market participants to execute their orders on market-neutral terms and to lower their trading costs. Orders are placed in a closed order book and executed there in continuous trading at the midpoint of the current best bid and best ask price from the open Xetra order book. Since 24 November 2008, trading participants have been able to trade around 1,500 equities and exchange traded funds (ETFs) on the Frankfurt Stock Exchange with the Xetra MidPoint function. Xetra MidPoint orders are legally considered to be exchange-concluded transactions. Pricing is transparent and can be fully traced. Clearing is conducted via the central counterparty Eurex Clearing with no counterparty risk. The Xetra MidPoint order book is accessed via Xetra participants’ existing technical infrastructure, so no additional platform connection is necessary. Further information is available at www.deutsche-boerse.com/midpoint.
Xetra® is a registered trademark of Deutsche Börse AG.
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