Deutsche Börse Cash Market provides listing, trading and clearing services to issuers, intermediaries and investors. In addition, it provides efficient access to the capital markets, supports the latest trading techniques and provides an ever-growing range of tradable securities such as stocks, exchange traded funds, bonds, warrants and certificates. Xetra, one of the leading market places for securities in Europe, is run by Deutsche Börse Cash Market.
Approximately 240 European banks and brokerage firms admitted to the Frankfurt Stock Exchange and about 200 participants from partner exchanges from a total of 18 countries including the United Arab Emirates and Hong Kong are connected to Xetra, making it a truly European market place. More than 1,100,000 securities are currently traded using Xetra technology, more than on any other trading platform.
With its integrated clearing facility provided by Eurex Clearing, it is also one of the most advanced trading platforms in terms of counterparty risk management. The Xetra trading system sets the highest standards in terms of reliability, security, speed and innovation.
Looking at trade volumes for 2013, EUR1.16trn was turned over in the Deutsche Börse Cash Markets. In February 2014 book turnover on Xetra stood at EUR93.4bn, of which equities accounted for EUR82.4bn.
During the last month several new ETFs have been launched in the XTF segment on Xetra, which currently compromises a total of 1,014 exchange-listed index funds, making it the largest offering of all European stock exchanges.
In October 2013 for example the Lyxor UCITS ETF Japan (TOPIX) – Daily Hedged-EUR has been tradable in the XTF segment on Xetra. This new ETF enables investors to participate in the performance of all Japanese equities that are admitted to official trading in the prime segment on the Tokyo Stock Exchange. A daily currency hedging strategy also hedges the ETF against exchange rate fluctuations between the euro and the Japanese yen. The TOPIX price index is weighted by market capitalisation and currently comprises over 1,600 Japanese stock corporations.
In January 2014 the db X-trackers Harvest CSI300 Index UCITS ETF (DR) was issued by Deutsche Asset & Wealth Management together with Harvest Gold Investments. This ETF enables European investors to participate for the first time in the performance of the Chinese CSI300 Index via physical replication and because of the Hong Kong-based Harvest Global Investments’ RQFII authorisation, the ETF can invest directly in A-class equities.
Another ETF has been tradable in the XTF segment since January: the PIMCO Covered Bond Source UCITIS ETF. This ETF enables investors to participate in the performance of globally issued covered bonds via an actively managed ETF.
In March 2014 the iShares EURO STOXX 50 ex-Financials UCITS ETF has been tradable in Deutsche Börse’s XTF segment. This ETF is the first ETF to be issued with an international security structure, which is intended to further increase the efficiency of cross-border transactions and the provision of liquidity by international trading participants.
The selection of ETFs in the XTF segment, together with an average monthly trading volume of EUR10bn, makes Xetra Europe’s leading trading venue for ETFs.
“We are very happy to win this year’s Hedgeweek award for best European trading venue. The ongoing development of our infrastructure serves to reinforce our leading international role and competitiveness,” says Dr Martin Reck, Cash Market Managing Director at Deutsche Börse.