FRANKFURT, 23-Nov-2017 — /EuropaWire/ — Introduction of fully-electronic trading revolutionised exchange trading / Launched on 28 November 1997 with 109 equities
Xetra trading on the Frankfurt Stock Exchange is 20 years old; trading was launched at 8.30 a.m. on “X-day”, 28 November 1997. This was the first time that shares in Germany were traded via a fully-electronic system with buy and sell orders in the order book automatically executed, bringing about a fundamental change in securities trading in the following years.
“The introduction of Xetra was a revolution,” said Martin Reck, Managing Director Cash Market Development at Deutsche Börse. “Securities trading became more transparent, more cost effective and much faster. The Xetra launch was a joint effort; the system was supported throughout Germany by banks, brokerage firms and regulators. Xetra put Frankfurt among the top international financial venues.”
A total of 109 equities were tradable via the system at launch. These included DAX and MDAX securities as well as preferred and ordinary shares belonging to the DAX, and the ProSieben share. It also made exchange trading in Frankfurt much more international, with the total of 222 trading firms connected to Xetra including nine from the UK, three from the Netherlands, three from Switzerland, two from France and one each from Austria and Finland. The trading technology has also been used on an increasing number of international stock exchanges – including the Vienna Stock Exchange, Dublin, Prague, Budapest, Ljubljana, Zagreb and Bulgaria.
The Xetra trading venue currently accounts for some 90 percent of the trading volume of all German stock exchanges. Average daily turnover is over €5 billion for the around 2,500 liquid tradable securities, which include German, international shares and exchange-traded products such as ETFs. This makes Xetra one of the world’s leading reference markets for German stocks and the leading trading venue for ETFs in Europe. The IT system on which Xetra trading was based was replaced in July 2017 by the modern T7 technology. Trading participants have since benefited from ever-shorter latencies and synergies, as T7 is also used on the Eurex derivatives exchange.
SOURCE: Deutsche Börse Group
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