Deutsche Börse Launches Trade Timing Data for ETF Market

From today, the company will publish more information on when is the best time of day to buy ETFs.

In an effort to allow its clients to potentially reduce their dealing costs, Deutsche Börse AG, an exchange operator and provider of transactions services, will now publish more information on when is the best time of day to buy an exchange-traded fund (ETF), according to a report from Bloomberg.

Specifically, the Frankfurt-based company will publish information on liquidity from today, which will show clients when an ETF could offer the most attractive spread between the bid and asking price.

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The information, which has been dubbed as the Intraday Xetra Liquidity Measure, is calculated for around 1,400 ETFs. These ETFs are on the Frankfurt exchange’s XTF platform, an all-electronic trading system which facilitates trading in stocks, funds, bonds, warrants and commodities contracts.

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The Xetra Liquidity Measure gives clients of Deutsche Börse a historical average spread for 30-minute time frames between 09:00 and 17:30. This new liquidity measure could have a great impact on investors, as knowing when the right time to trade can have a large impact on their overall transaction expenses.

Stephan Kraus of Deutsche Börse
Stephan Kraus
Source: GFM Ltd

Speaking to Bloomberg, Stephan Kraus, who is responsible for the XTF segment at Deutsche Börse said: “The need for more detailed information about trade timing with regards to achieving preferably cheap cost is a frequent request from clients and the new data shows that investors can save up to 30 percent in those costs if they pick the right time to place their order.”

Deutsche Börse May Extend Liquidity Measure to Other Assets

On the exchange, around 13 billion ($14.7 billion) in ETFs are traded on average each month. This is the largest average volume for ETFs in Europe. However, according to Kraus, the Frankfurt exchange operator might also introduce the new liquidity measure for other assets, such as cash equities.

The increased data coverage for ETFs is the latest to be introduced by Deutsche Börse. As Finance Magnates reported, towards the end of last year, the company’s market data service and the Group’s foreign exchange (forex) unit, 360T, expanded its coverage with a dedicated data product for FX spot and swap markets.

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