Deutsche Börse will launch a new block trading service on Xetra MidPoint on 29 July.
It has named Liquidnet, the global institutional trading network, as the block agent for this new service.
The block trading model provides a platform where more than 240 Xetra members will have the opportunity to trade directly with Liquidnet’s network of more than 700 asset management firms.
“Connecting Liquidnet provides our members the opportunity to execute block sized orders in a manner that serves the specific requirements of this segment, with all advantages of exchange trading via Xetra MidPoint.”
“The block agent model offers access to considerably greater block liquidity for Xetra MidPoint execution, increasing execution probability for all Xetra participants,” said Martin Reck, cash market managing director at Deutsche Börse.
Mark Pumfrey, head of EMEA, Liquidnet, said that the firm has long championed borderless equity trading by opening up investment opportunities for its members in markets where they can create value and improve their investment performance.
“When combined with an average execution size of €1.1 million on our platform, the Xetra MidPoint liquidity will significantly enhance institutional block trading in German stocks. We believe this cooperation will make trading of these stocks more efficient, drive performance, and lead to an increase in foreign institutional investment.”
All German shares that can be settled via the CCP may be traded using the block agent model, including those of the four selection indices DAX, MDAX, TecDAX and SDAX, as well as other small and midcaps.
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