Deutsche Börse launches bonds trading on Xetra

Deutsche Börse launches bonds trading on Xetra

Specialists to provide liquidity for around 700 corporate bonds/ Investors will benefit from top price quality and commission-free trading for all order sizes

On 1 December, Deutsche Börse launched the “Continuous Auction with Specialists” trading model for trading of bonds on Xetra®. Initially around 700 corporate bonds denominated in Euros listed on FWB® Frankfurt Stock Exchange’s Regulated and Open Markets will be tradable in this new model on Xetra. Other types of bonds are to be included gradually.

The model combines the advantages of trading with the support of Specialists and those of fully electronic trading on Xetra. The model allows these Specialists to provide for tradability and high price quality even for small order sizes. With this new trading model, private investors and small to medium-sized institutional investors will benefit not only from the high execution quality in on-exchange bonds trading with continuous quote presence and near-time execution by the Specialists, but particularly since there is no commission fee in the specialist model.

Three brokerage firms fulfill the criteria to act as bonds trading Specialists: Close Brothers Seydler Bank AG, ICF Kursmakler AG and Wolfgang Steubing AG will be responsible for trading in the 700 or so selected corporate bonds on Xetra.

The launch of bonds trading on this pan-European trading platform is yet another milestone in Deutsche Börse’s European growth strategy.

About Xetra

This business unit of Deutsche Börse provides listing, trading and clearing services for issuers, intermediaries and investors. Xetra provides efficient access to the capital markets, supports the latest trading techniques and provides an ever-growing range of tradable securities. The trading system of the same name sets the highest standards in terms of reliability, security, speed and innovation. Xetra offers the highest liquidity, transparency and cost efficiency to more than 250 European banks and brokerage firms from 19 countries. Approximately 400,000 securities are traded using Xetra technology, more than on any other trading platform.