Deutsche Börse is promoting a price model for its pan-European trading segment “Xetra International Market” (XIM). Reportedly, Xetra participants that place orders and achieve a certain percentage of the trading volume in their role as liquidity providers will receive payment of 0.36 basis points (equivalent to 0.0036%) on the volume executed. For all other orders executed, transaction fees amounting to 0.12 basis points will be incurred. 0.06 basis points will be payable for clearing positions.
Deutsche Börse has said that transactions executed on Xetra International Market will be offset via Eurex Clearing, Europe’s largest central counterparty. Clearstream forms the interface between Eurex Clearing and the domestic markets enabling it to use the latter’s settlement liquidity.
Frank Gerstenschläger, member of the Executive Board of Deutsche Börse AG and responsible for the cash market, said: “The top market quality, the price model aimed at competition and the low set-up costs for Xetra participants will provide an excellent springboard for XIM in pan-European blue-chip trading. As hardly any additional costs will be incurred when operating the system, the new trading segment will enable Deutsche Börse to achieve economies of scale on Xetra and in its clearing house. Thus, we are expecting a sustainable business model for Xetra International Market.
Xetra is a registered trademark of Deutsche Börse AG. It is a fully electronic trading platform to which 260 banks and brokerage firms in 19 countries are connected. Approximately 400,000 securities are traded using Xetra technology.
