Xetra (trading system)
In Xetra ( Exchange Electronic Trading, abbreviation ETR ) is an electronic trading system of the German Börse AG for the cash market, the central computer are in Frankfurt am Main. To client computers can connect worldwide over the internet or dedicated lines to this central computer.
Xetra dissolved on 28 November 1997 from the IBIS. Against the introduction of the system was stirring criticism, particularly from other exchanges and supporters of the trading floor. Proponents led market-driven execution prices, low transaction costs, equality, location independence and anonymity of the trading partners in the meeting. Challenges for an electronic trading system Xetra as relate mainly stability, availability, scalability and latency as well as a long-term increase in market activity.
Xetra has been developed during the development phase by the then head of communications William Brandt branded product. The aim was to Xetra position better for users and the public and to sell to other exchanges. Sometimes Xetra is also interpreted as an abbreviation for Electronic Trading Exchange or, such as in the technical manual of the German Stock Exchange. The design and implementation of information technology of the Xetra system was based on the German stock exchange system, designed by the Eurex system and (now Accenture) conducted and German Börse Systems on behalf of Deutsche Börse AG Andersen Consulting.
Xetra is protected as a trademark.
In 2007, about 83 percent of the total equity trading on German exchanges were handled via the Xetra trading system. Access to Xetra is available on trading days on the Frankfurt Stock Exchange 9:00 bis 17:30 clock. Trading on the trading floor in Frankfurt am Main is set on May 20, 2011. The prices on Xetra are the basis for calculation of the best-known German stock index DAX.
To high levels of supply and demand ( liquidity) is a securities order, especially in the DAX stocks to market-based prices run faster and on the venue Xetra than on other trading venues. This principle is also supported by liquidity provider (known as Designated Sponsors ); they have to adjust selected, traded on Xetra securities continuously binding buy and sell prices (quotes ) in the market.
Since all trade is carried out electronically, it can in Xetra frequent partial execution of orders arrive than at stock exchanges. By networking for the Internet, the performance can be tracked worldwide. Access is not only the stockbrokers possible, but practically every user with a brokerage account. In order to avoid undesired strong price fluctuations, can be used for trading in a security automates a volatility interruption ( Volatility Interruption ) made , or can the security of the Trading Surveillance Office ( HÜSt) of Deutsche Börse AG are manually suspended from trading.
The participation in trading on Xetra and on the floor trading does not require a separate admission, but newly listed securities will be automatically enabled for trading on both trading systems.
The German stock exchange in Frankfurt today operates multiple instances of the Xetra system:
- Xetra Frankfurt 1 is the platform for the German stock market.
- Xetra Frankfurt 2, the platform of 28 April 2008 migrated on Xetra Scoach derivatives exchange.
- The platform of the Vienna Stock Exchange.
- ISE Xetra. This instance took on 14 September 2009 to the operation. ISE Xetra ran until then several years as a separate control segment within Xetra Frankfurt 1
The Xetra technology is also used for the Bulgarian Stock Exchange and the Leipzig EEX electricity market and will also be used on the Shanghai Stock Exchange.