Frankfurt
04 July 2017
Reporter: Drew Nicol

Deutsche Börse engages T7 for cash


Deutsche Börse Group’s Xetra trading platform has migrated its cash trading to its new T7 facility for the Frankfurt Stock Exchange, putting both Xetra and Eurex derivatives trading on the same system.

According to Deutsche Börse Group, the new system reduces latency, meaning the time for order processing, even further. Harmonising Xetra and Eurex trading technology also produces significant synergies and means lower development and maintenance costs.

Deutsche Börse also confirmed that Eurex trading participants will benefit from easier access to Xetra, while regulatory requirements and technical updates can also be integrated into the trading system more quickly and efficiently.

The Xetra trading platform on the Frankfurt Stock Exchange is the global reference market for German equities and the leading market for European exchange-traded funds trading.

Roughly 1,000 international equities and 1,500 exchange-traded products are currently tradable on Xetra.

Eurex Exchange, the European Energy Exchange and the Bombay Stock Exchange already use T7 trading technology, while the Vienna Stock Exchange and the Irish Stock Exchange will soon migrate their systems to T7.

Hauke Stars, Deutsche Börse executive board member responsible for cash market, pre-IPO and growth financing, said: “The new trading technology T7 gives investors and exchange-listed companies access to a sustainable and extremely reliable system that already has a proven track record on different international stock exchanges.”

“Trading participants specifically benefit from cash market and futures trading synergies and further reduction in latencies.”

The migration to T7 follows Eurex’s move to become the only exchange that offers futures and options on all major MSCI indexes this week, in response to the launch of futures and options on the MSCI EAFE index.

Eurex promises the new products will address the structural behaviour changes of the buy side.

According to Eurex, passive products like exchange-traded funds are gaining momentum and this affects the derivatives markets because it creates new hedging needs for asset managers.

Mehtap Dinc, head of derivatives product development at Deutsche Börse, said: “The European market for corporate bonds plays a key role in the financial ecosystem. It has grown consistently after the financial crisis, both in terms of market participants and overall assets under management.”

“The new environment creates demand for innovative hedging solutions in the form of exchange-traded derivatives. The same is true for MSCI products.”

“With more providers of MSCI-related vehicles and growing competition on pricing these, an increased need for cost-effective and efficient hedging tools in the form of futures and options arises.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Tom Carey takes on new role at Broadridge
16 January 2018 | New York | Reporter: Zsuzsa Szabo
Broadridge Financial Solutions has appointed Tom Carey to head up the firm’s new international business Broadridge International
Raymond James selects Red Deer for MiFID II
16 January 2018 | London | Reporter: Jenna Lomax
Raymond James Investment Services has chosen Red Deer’s research valuation management solution to adhere to MiFID II
SWIFT and CSDs join forces on proxy voting DLT
15 January 2018 | Brussels | Reporter: Jenna Lomax
SWIFT and seven CSDs have partnered to explore how distributed ledger technology could be implemented in proxy voting and for digital assets
Saxo Bank appoints CCO
15 January 2018 | London | Reporter: Jenna Lomax
Bunce will begin his new role in February 2018 and will report to Kim Fournais, CEO and founder
HSBC creates head of innovation role for blockchain actions
15 January 2018 | London | Reporter: Jenna Lomax
Nabi will be responsible for establishing and managing initiatives across HSS — focusing on technology as well as digital and data solutions
Northern Trust acquires technology resources from Citadel
12 January 2018 | Chicago | Reporter: Jenna Lomax
Citadel has agreed to give Northern Trust the software development rights for Omnium, a software solution, along with an undisclosed number of development staff
Lombard Risk share prices soars after Vermeg takeover offer
12 January 2018 | London | Reporter: Zsuzsa Szabo
Dutch financial software provider Vermeg has set its sights on acquiring Lombard Risk with a £52.08 million cash for shares offer
More news