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Xetra ( Market Identifier Code (MIC): XETR) is a trading venue operated by Frankfurter Wertpapierbörse (FWB, the Frankfurt Stock Exchange) based in Frankfurt, Germany. In 2015, 90 percent of all trading in shares at all
German German(s) may refer to: * Germany (of or related to) **Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **Ge ...
exchanges was transacted through the Xetra trading venue. With regard to DAX listings, Xetra has 60 per cent market share throughout Europe. Trading times on trading days are from 9.00 a.m. to 5.30 p.m. The prices on Xetra serve as the basis for calculating the DAX, the best-known German
share index In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance. Two of the p ...
. Over 200 trading participants from 16 European countries, plus Hong Kong and the United Arab Emirates, are connected via Xetra servers in Frankfurt am Main. Given the high turnover (liquidity) on the Xetra trading venue, orders for securities are executed swiftly and at prices in line with the market. Moreover, this principle is supported by Designated Sponsors who post binding purchase and selling prices (quotes) on a continuous basis and thus ensure additional liquidity and fair prices. As all the exchange trading is transacted electronically, there can be partial execution of orders on the Xetra trading venue. However, banks and online brokers do not face additional transaction costs for same-day partial executions and therefore most of them do not bill their clients additionally for partial executions. All listings are in euro including shares of secondary listings from issuers whose primary listing is in an other currency than the euro.


Protective mechanisms and market surveillance

With a view to improving the continuity of prices and to avoid mistrades ( clearly erroneous trades, see
fat-finger error A fat-finger error is a keyboard input error or mouse misclick in the financial markets such as the stock market or foreign exchange market whereby an order to buy or sell is placed of far greater size than intended, for the wrong stock or contract ...
), several protective mechanisms are in place for the Xetra trading venue. These include volatility interruption, market order interruption, and liquidity interruption measures. Trading on the Xetra trading venue is governed by clear rules, which apply equally for all trading participants. Independent market surveillance is made up of the Trading Surveillance Office (HÜSt), the Exchange Supervisory Authority attached to the Hessian Ministry of Economic Affairs, Transportation, and Regional Development, and the Federal Financial Supervisory Authority (BaFin).


Admission of securities

The admission of securities to the Frankfurter Wertpapierbörse (FWB, Frankfurt Stock Exchange) and its trading venues Xetra and
Börse Frankfurt The Frankfurt Stock Exchange (german: link=no, Börse Frankfurt, former German name – FWB) is the world's 12th largest stock exchange by market capitalization. It has operations from 8:00 am to 10:00 pm ( German time). Organisation Locate ...
does not require separate admission. Newly listed securities at the Xetra trading venue are automatically included in
Börse Frankfurt The Frankfurt Stock Exchange (german: link=no, Börse Frankfurt, former German name – FWB) is the world's 12th largest stock exchange by market capitalization. It has operations from 8:00 am to 10:00 pm ( German time). Organisation Locate ...
trading. The organising companies of the Frankfurter Wertpapierbörse (FWB, Frankfurt Stock Exchange) are Deutsche Börse AG and Börse Frankfurt Zertifikate AG.


Trademarks

Xetra is a registered trademark of Deutsche Börse AG.


Development

The Xetra trading technology was positioned as a brand product while it was still being developed. The intention was to be able to better position Xetra among trading participants and in the public eye, and to license it to other exchange operators. The trading technology of Xetra was designed and implemented on the basis of Eurex trading technology; this was undertaken on behalf of Deutsche Börse AG by Andersen Consulting (nowadays
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) and Deutsche Börse Systems.


Co-operation partners

Through its Deutsche Börse Cash Market business section, Deutsche Börse AG in Frankfurt/Main now operates two trading venues based on the trading technology of Xetra: * Xetra (XETR) is the reference market for German equities and exchange traded funds. Active exchange traded funds, exchange traded commodities and exchange traded notes can also be traded. * Börse Frankfurt (XFRA), with the Börse Frankfurt Zertifikate AG (formerly Scoach) derivatives exchange, which migrated on 28 April 2008. The
Börse Frankfurt The Frankfurt Stock Exchange (german: link=no, Börse Frankfurt, former German name – FWB) is the world's 12th largest stock exchange by market capitalization. It has operations from 8:00 am to 10:00 pm ( German time). Organisation Locate ...
trading venue was migrated to the trading technology of Xetra on 20 May 2011. Furthermore, the trading technology of Xetra has also been in use at the
Vienna Stock Exchange en, Viennese , iso_code = AT-9 , registration_plate = W , postal_code_type = Postal code , postal_code = , timezone = CET , utc_offset = +1 , timezone_DST ...
since November 1999. In December 2010, the
Vienna Stock Exchange en, Viennese , iso_code = AT-9 , registration_plate = W , postal_code_type = Postal code , postal_code = , timezone = CET , utc_offset = +1 , timezone_DST ...
similarly introduced Xetra at the Ljubljana Stock Exchange. The trading technology is also in operation at the
Prague Stock Exchange Prague Stock Exchange (PSE; cs, Burza cenných papírů Praha (BCPP)) is the largest and oldest securities market organizer in the Czech Republic. After a 50-year hiatus brought about by World War II and the Communist regime, it was reopened i ...
(since November 2012), the Budapest Stock Exchange (since December 2013), the
Irish Stock Exchange Euronext Dublin (formerly The Irish Stock Exchange, ISE; ga, Stocmhalartán na hÉireann) is Ireland's main stock exchange, and has been in existence since 1793. The Euronext Dublin lists debt and fund securities and is used as a European ga ...
(since 2000), the
Bulgarian Stock Exchange The Bulgarian Stock Exchange ( bg, Българска фондова борса, ''Balgarska fondova borsa'', abbreviated BSE) is a stock exchange operating in Sofia, the capital of Bulgaria. It was founded as First Bulgarian Stock Exchange on 10 ...
(since 2008), the
Malta Stock Exchange The Malta Stock Exchange ( mt, Borża ta' Malta), originally known as the Casino della Borsa, is the stock exchange of the island nation of Malta. Since being set up in 1992, the Exchange has been key to the raising of capital for the private sec ...
(since 2012), the
Cayman Islands Stock Exchange The Cayman Islands Stock Exchange (CSX) is a stock exchange based in Grand Cayman, Cayman Islands. It started operations in July 1997 and is fully owned by the Cayman Islands government. The CSX was recognised by the London Stock Exchange as an ...
(since 2013) and the Zagreb Stock Exchange (since 2017).
Eurex Bonds Eurex Exchange is an international exchange which primarily offers trading in European based derivatives. It is the largest European futures and options market. The products traded on this exchange vary from German and Swiss debt instruments to E ...
, the Deutsche Börse trading platform for government bonds, relies on the trading technology of Xetra. The New Generation Trading System in operation at the Shanghai Stock Exchange was also developed on the basis of the trading technology of Xetra.


History

The trading technology of Xetra replaced the IBIS trading platform on 28 November 1997. Advocates cited execution prices in line with the market, low transaction costs, equality, geographical location, and the anonymity of trading partners in its favour. The main challenges discerned were to ensure system stability and availability, scalability, latency, and long-term growth in market activity.


External links


Xetra websiteDeutsche Börse Cash Market - Xetra trading venue


References

{{Reflist, 1 Financial services companies of Germany Economy of Frankfurt Electronic trading platforms