Key markets to be linked up gradually Deutsche Börse has launched the initial phase of its pan-European trading segment “Xetra International Market” (XIM). As of November 2, Xetra participants can trade European blue chips via XIM and settle the transactions in their domestic market. The first stocks to be available for trading on XIM are the most liquid ones from Belgium, France and the Netherlands. These will be joined in a few weeks by stocks from Finland and Spain, and in mid-January 2010 by the Italian blue chips. By introducing the individual markets progressively until mid-January 2010, Deutsche Börse is addressing the requirements of the market participants. All processes, systems and interfaces for trading, clearing and settlement can now be checked per domestic market along the entire process chain and integrated gradually. By the end of the initial phase, a total of 96 equities in the trading currency EUR will have been accepted into the XIM trading segment. These will comprise the stocks from the DJ EURO STOXX 50® index and highly liquid stocks from other indices. Risk-free clearing with CCP and efficient interface to domestic market
Transactions executed on Xetra International Market will be efficiently offset via Eurex Clearing, Europe’s largest central counterparty. Eurex Clearing is a global leader in risk management standards and eliminates counterparty risk. With Clearstream, Deutsche Börse Group offers services downstream of trading. The international Clearstream network covers 46 markets, making Clearstream the ideal domestic market interface for Xetra International Market. Efficient use can be made of its settlement liquidity and the processes it already has in place. Attractive transaction fees – unchallenged pricing Xetra participants that place orders and achieve acertain percentage of the trading volume in their role as liquidity providers will receive payment of 0.36 basis points on the volume executed. For all other orders executed, transaction fees amountingto 0.12 basis points will be incurred. 0.06 basis points will be payable for clearing positions. Of all the trading venues in Europe, Xetra International Market therefore offers the lowest prices for the supply and demand of liquidity. Furthermore, Xetra International Market is the only trading platform in Europe offering purely value-based pricing fortrading and clearing, i.e. there are no minimum fees. Synergy effects and new strategies
Synergy effects and new strategies Xetra International Market has close ties to the Eurex derivatives exchange – both use the same technical platform. This creates additional synergies as implementation costs for the participant are reduced. New arbitrage strategies will be possible between the cash and derivatives markets. Eurex expands its product portfolio in the Dow Jones STOXX® 600 on an ongoing basis. All advantages at a glance: European blue chips from Belgium, France and the Netherlands tradable, joined later by stocks from Finland, Spain and Italy. These will comprise the stocks from the DJ EURO STOXX 50 index and highly liquid stocks from other indices. Efficient clearing and settlement process in the respective domestic market. Lowest price level with purely value-based pricingin trading and clearing without any minimum fee –unique in Europe. Simple “plug and play” solution: Xetra participants can use their existing infrastructure, there are no additional connection costs. Easy admission to trading through extension of existing membership. New trading and arbitrage opportunities between Xetra and Eurex markets. Fully compatible with MiFID; allows optimum execution with maximum transparency. Offers all the advantages of a regulated, monitored and neutral exchange platform.
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