Automated Trading

Until April 2008, most structured products were traded through the trading system Xontro. On 28 April 2008, trading in more than 360,000 structured products was migrated to the high-capacity trading platform Xetra®. Via the affiliated Xetra members, investors throughout Europe have since been able to trade structured products on the trading venue Scoach. For German investors, trading has thus become faster and more efficient.

Price determination at Scoach now occurs automatically via Xetra. For trading in structured products, issuers can choose between two trading models, the Issuer Trading Model and the Specialist Trading Model. In the Issuer Trading Model, order matching with the issuer’s binding quotes is fully electronic. Trading in the Specialist Trading Model is intermediary-based, with the so-called specialist responsible for entering quotes into Xetra. Until the end of 2006, every order had been checked separately by a lead broker and executed manually. Since then, the processing of orders in investment and leverage products on the marketplace Scoach has been largely automated through a technological infrastructure upgrade.

Through Xentric Quote Source (XQS), Deutsche Börse Group offers lead brokers the technological infrastructure for a high-quality realtime dissemination of issuer quotes. The infrastructure allows for an execution of a large part of investment and leverage product orders in Frankfurt within less than ten seconds. Next to issuer quotation via XQS, the Issuer Trading Model offers direct quote entry into Xetra via the interface VALUES API.