The liquidity and number of trading participants in the trading of Dutch equities has increased substantially since the Dutch segment on Xetra was launched. Deutsche BÃ¶rse gave this favorable interim assessment on Thursday, some three months afer the launch of its new segment, Xetra Dutch Stars. The new Deutsche BÃ¶rse segment offers a tailormade alternative for trading in Dutch equities.
The average order size has tripled to about 30,000 euros through the expansion of the segment on November 17. The spreads in the trading of Dutch equities have narrowed and market depth has increased. Based on the Xetra Liquidity Measure (XLM), the implicit transaction costs in the Dutch segment have decreased from 80 basis points in October to 20 basis points. This represents a reduction of 75 percent. Trading participants benefit from the higher liquidity and thus lower trading costs.
The Royal Dutch equity topped Nokia as the highest-liquidity equity on etraWith 11.5 basis points, Royal Dutch is one of the most liquid equities on Xetra. Unilever and Philipps rank among the 50 most liquid equities in the meantime.
The number of Xetra participants trading Dutch equities has increased by about 25 percent since the new segment was launched. Of the some 310 participants admitted to trading, roughly 120 companies are now trading Dutch equitiesAfter the British participants, Dutch banks and financial-service providers are the largest non-German group of participants on the pan-European Xetra trading platform.
Deutsche BÃ¶rse launched the new segment for Dutch equities on the Xetra electronic trading system on November 17. Since that time, participants have been able to trade all of the 25 equities in the Dutch AEX25 blue-chip index continuously on the world's largest exchange-trading network. Market makers provide for high liquidity and narrow spreads.
In order to facilitate the access for new participants to the Xetra electronic trading system, Deutsche BÃ¶rse is reimbursing part of the fees to the most active participants and bearing the costs of the technical connection to Xetra for new customers. This makes Deutsche BÃ¶rse the lowest-cost provider for trading, clearing and settlement in Dutch equities.