Bringing you live news and features since 2006 


Xetra Release 16.0 includes new matching functions


Deutsche Börse Cash Market: Deutsche Börse has introduced a new advanced version of its Xetra electronic trading system release 16.0, offering customers new matching functions specially designed for larger volume orders.

In addition hardware optimisation has furthermore led to an overall performance improvement and reduction in latency. 

“With the new Xetra Release we are supporting our customers from an early stage concerning the implementation of regulatory requirements resulting from the EU Markets in Financial Instruments Directive, MiFID II. We are furthermore increasing the attractiveness of on-exchange trading compared to OTC trading through new features such as the Volume Discovery Order,” says Dr Martin Reck, Managing Director Cash Market at Deutsche Börse.

The new Volume Discovery Order (VDO) is a MiFID II-compliant solution for safe execution of large orders on Xetra with minimum market impact. The EU financial market directive will only allow a very limited proportion of order volume to be traded on dark pools; market participants will therefore need an alternative for large-volume orders and the VDO offers this alternative. The new order type has received a dedicated Waiver from the European Securities and Markets Authority (ESMA) and the Hessian stock exchange regulator and is therefore not subject to the volume caps restriction. The VDO is based on the existing Iceberg Order and enables the hidden part of the order to be executed against other VDOs at the midpoint of the bid-ask spread in the order book through a second limit. Leading asset management institutions have welcomed the new order type, amongst which are Allianz Global Investors, Deka Investment and Union Investment.

Another new feature is the “Designated Sponsor Quote Request” for ETFs and exchange-traded products, which combines the features of OTC and exchange trading. Market participants on Xetra will be able to enter quote requests and trade against the quote directly in the order book. As a result, participants will benefit from potential price improvements for large orders as a result of interaction with the entire order book, from efficient order processing along the existing process chain and from the security of a central counterparty. 

In future it will also be possible to trade all 1.3 million structured products on the Börse Frankfurt venue using a quote request functionality. The securitie's specialist can respond to quote requests, which are then directly tradable for the sender. 

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by