As of September 2008, a new pricing and discount model will apply for algorithmic trading on Xetra, in which computers evaluate trading signals and place orders independently in the syst
As of September 2008, a new pricing and discount model will apply for algorithmic trading on Xetra, in which computers evaluate trading signals and place orders independently in the system.
The minimum fee of EUR 0.60 for executed orders in the ‘Automated Trading Program’ (ATP) will no longer apply. Instead, the transaction fee will be directly based on value of the executed order even for small ATP orders with a value of less than EUR 12,500.
This will reduce the transaction fee, for example, for an executed ATP order with a value of € 6,250 by 50 percent. In the future, there will also be eight discount levels instead of the current seven. Discount rates per discount level will increase from 7 to 7.5 percent.
Hence, the maximum discount rate on Xetra transaction fees will increase from 49 to 60 percent. With the new model, ATP customers would benefit from a fee reduction of EUR 10 million per year on the basis of the volume figures of the first half of 2008.
Deutsche Börse assumes that ATP trading volume will rise further due to the price sensitivity of algorithmic orders that are often sliced into smaller sections; a correspondingly large compensation of the price effects on turnover is expected.
Currently the volume of algorithmic orders in the Xetra system amounts to approximately 40 percent. Deutsche Börse has granted discounts for algorithmic trading strategies based on trading volume since 2005 and has thus increased liquidity considerably over the course of the last years for the benefit of all customers.
