Xetra - 10 years of successfully setting industry standards

28 November 2007

Exactly ten years ago, Deutsche Börse launched the electronic trading system Xetra, which matched securities orders on a fully automated basis for the first time. The advantages then were the same as they are today: fair, market-oriented execution prices, lower transaction costs, access regardless of location and the fastest execution at the lowest prices.

Xetra quickly became an industry standard for securities trading and has become a synonym for stock exchange electronization.

More than 97 percent of the trading volume in DAX shares is now handled via Deutsche Börse’s pan-European electronic securities trading platform. It has secured a leading position in Europe within only nine years. 221 participants from seven countries started trading on the first day of operation, executing 4,934 transactions. Since then, all of the key figures have increased multifold: the number of authorized traders has increased to more than 4,500 from 19 countries. These traders conclude an average of around 670,000 transactions each day.

The average daily order book turnover stands at ten billion euro. Around 65 percent of Xetra volume now originates from trading participants outside of Germany.

With a system availability of 99,998 percent Xetra belongs to the most stable trading systems worldwide. Thanks to permanent hard- and software updates Xetra is furthermore one of the fastest and most modern systems in Europe: Average round-trip-time (placing, executing and confirming an order) is down to 35 milliseconds, the fastest order of the day runs at only four milliseconds.

In spring 2008, Deutsche Börse will introduce a completely new Xetra generation, which will bring considerable service and performance improvements for all market participants. One of the first steps will involve making around 280,000 certificates and warrants traded on the floor available on Xetra. Via its subsidiary Scoach, Deutsche Börse and Schweizer Börse SWX will thus become a trailblazer in European certificate trading.

So far, trading certificates is mere a national business. Xetra trading makes the investor base more international and increases liquidity to the benefit of all participants

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