Initially, it was developed to be used on the Frankfurt stock exchange; however, it eventually expanded to several other stock exchanges in different countries in Europe and even on other continents. All of the prices from the DAX are taken off of the Xetra trading system. While the DAX is an important index with its 30 Prime Standard companies represented, this does not equate to the strength of the whole German economy. They must hold minimally one analyst conference every year. Xetra was developed with the objective of making the market more efficient. What makes it so significant is that it is a completely electronic platform for trading German stocks. It indicates whether news board messages regarding current technical issues of the trading system have been published or will be published shortly. Strictly speaking, only the Frankfurt Stock Exchange is a stock exchange, while Deutsch Börse solutions are channels for trading assets. Moreover, this principle is supported by Designated Sponsors[4] who post binding purchase and selling prices (quotes) on a continuous basis and thus ensure additional liquidity and fair prices. Among these are the DAX, the Eurostoxx 50 and the VDAX. This group, in addition to being responsible for Xetra, is also behind two other trading “channels”: Börse Frankfurt and Tradegate Exchange. In fact, it is treated as a true and autonomous digital stock exchange. In addition, as previously mentioned, the system is currently used in other locations. The FRA makes a large portion of its profits from the Xetra trading system. The many foreign investors flowing in because of Xetra are responsible for a significant share of the profits. Listing companies is something that is associated with stock exchanges; Listed companies are those that have their shares traded on a certain exchange. It allows to reduce costs with financial transactions, in addition to offering a range of features that is always growing, as the system receives periodic updates. Prime Standard companies listed on the Xetra DAX and other important Frankfurt exchanges such as SDAX, MDAX, and TecDAX have to attain international transparency standards. It has done this since the technology began managing all electronic functions for the DAX on January 1, 2006. Thanks in part to the success of the Xetra, this exchange represents one of the most efficient and biggest facilities for trading markets on earth. It is also among the oldest stock exchanges around the globe. Also known as the FRA, it is based in Frankfurt. Since then, it has spread to other national stock exchanges in Vienna, Austria; Dublin, Ireland; and Shanghai, China. Xetra is a completely electronic trading system. In total, 18 countries adopt it. Introduction of bond and, General improvements to functionality (incl. Non-trading days in 2020 are displayed in our trading calendar. [8], Xetra is a registered trademark of Deutsche Börse AG.[9]. With regard to DAX listings, Xetra has 60 per cent market share throughout Europe. These prices are based on the FRA trading venue floor trades and continue until 5:45pm. Each of them is best suited for trading certain types of assets and for use by certain investor profiles. Xetra was one of the first electronic trading systems in the world. The name is an acronym for Exchange Electronic Trading. The creators of Xetra originated it for the Frankfurt stock exchange. This blue chip index of their stock market exchange contains the 30 most important German companies that are traded on the FRA. Minor adjustments to the frontend and backend, Introduction of intraday auctions, Designated Sponsors, and stop orders. Xetra The electronic Trading Platform in use at the Frankfurt Stock Exchange. Despite the confusion, the general understanding is that it is not a stock exchange. Xetra® is an acronym for Exchange Electronic Trading, which is a global trading system established by German marketplace and transaction services company Deutsche Borse. Through its Deutsche Börse Cash Market business section, Deutsche Börse AG in Frankfurt/Main now operates two trading venues based on the trading technology of Xetra:[10], Furthermore, the trading technology of Xetra has also been in use at the Vienna Stock Exchange since November 1999. All financial dictionaries - including over 1000 financial terms - are available on, © 2014-2020 Herold Financial Dictionary |, No sign up or email required (55 copies left). This system provides broad order depth and greater flexibility for viewing the German markets. Traders can watch and access trading in German stocks, bonds, funds, commodities contracts, and warrants on the Xetra system. Xetra (Market Identifier Code (MIC): XETR) is a trading venue operated by Frankfurter Wertpapierbörse (FWB, the Frankfurt Stock Exchange) based in Frankfurt, Germany. Over 200 trading participants from 16 European countries, plus Hong Kong and the United Arab Emirates, are connected via Xetra servers in Frankfurt/Main.[3]. The Frankfurt Exchange handles practically all of Germany’s trading. The use of Xetra for trading takes place from Monday to Friday, from 9:00 am to 5:30 pm. With a view to improving the continuity of prices and to avoid mistrades (clearly erroneous trades, see fat-finger error), several protective mechanisms are in place for the Xetra trading venue. As all the exchange trading is transacted electronically, there can be partial execution of orders on the Xetra trading venue. Given the high turnover (liquidity) on the Xetra trading venue, orders for securities are executed swiftly and at prices in line with the market. Part of the success of Xetra lay in its relatively early launch. The trading technology of Xetra was designed and implemented on the basis of Eurex trading technology; this was undertaken on behalf of Deutsche Börse AG by Andersen Consulting (nowadays Accenture) and Deutsche Börse Systems. Börse Frankfurt and Tradegate Exchange, which, as we have seen, are other solutions of the Deutsch Börse Group, neither. The Xetra is a Frankfurt, Germany based trading system. What is most confusing about Xetra is that it is not treated simply as a system for carrying out transactions on the stock exchange. Deutsche Borse states that the performance of these companies is measured according to market capitalization and order book volume. This means they have to use international accounting standards as with US-GAAP or IAS. It was created in 1997, is based in Frankfurt, Germany, and is operated by the Deutsch Börse Group. The trading technology of Xetra replaced the IBIS trading platform on 28 November 1997. Xetra. Xetra newsboard Show information The market status window is an indication regarding the current technical availability of the trading system. Finally, these companies must publish a financial calendar. After the Xetra closes each weekday, the DAX index keeps trading under the name L-DAX. Xetra can be defined as a completely electronic trading framework, situated in Frankfurt, Germany. [5] Trading on the Xetra trading venue is governed by clear rules, which apply equally for all trading participants. As such, it became among the first of the great electronic and global trading systems.