Deutsche Börse And Liquidnet Launch Block Trading

Deutsche Börse will launch a new block trading service on Xetra MidPoint on July 29; it has named trading network Liquidnet as the block agent for this new service.

This new block trading model provides a platform where Xetra members can trade directly with Liquidnet’s network of asset management firms. Xetra MidPoint’s Block Agent model will combine the liquidity of multiple sources, increasing the probability that large orders will be executed at midpoint.

Mark Pumfrey, Head of EMEA, Liquidnet, said: “We have long championed borderless equity trading. When combined with an average execution size of €1.1 million on our platform, the Xetra MidPoint liquidity will significantly enhance institutional block trading in German stocks. We believe this cooperation will … lead to an increase in foreign institutional investment.”

All German shares that can be settled via the CCP may be traded using the Block Agent model, including those of the four selection indices DAX, MDAX, TecDAX and SDAX, as well as other small and midcaps.