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Xetra is an international securities trading venue, operated by the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse).
An overwhelming majority of turnover on German exchanges goes through Xetra, making it one of the most important venues in the local market.
Xetra operates as the reference market for exchange trading in German shares and exchange-traded funds (ETFs).
The price fixing on Xetra is conducted via defined and transparent rules. Despite its importance to the German market, Xetra is an international trading venue, with upwards of 50% of trading participants located outside of Germany.
Understanding Xetra’s Role in the Market
Xetra has seen its technology expand over the past two decades, culminating in improvements in transaction costs, efficiency, and transparency.
Its trading technology is continually being developed with the intention of being able to better position Xetra among trading participants, while also licensing it to other exchange operators.
In particular, Xetra’s trading technology was designed and implemented on the basis of Eurex trading technology.
In light of modern-day challenges, i.e. fat finger errors, flash crashes, mistrades, etc. Xetra has also looked to foster new protectionary mechanisms on its trading venue.
This includes volatility interruption, market order interruption, and liquidity interruption measures.
Furthermore, trading on Xetra is dictated by clear rules, which apply equally for all trading participants.
Independent market surveillance is also comprised of the Trading Surveillance Office (HÜSt), the Exchange Supervisory Authority, which attached to the Hessian Ministry of Economic Affairs, Transportation, and Regional Development, and the Federal Financial Supervisory Authority (BaFin).