Deutsche Brse represents their clients new Xetra MidPoint function enabling market participants to execute larger orders on market-neutral terms, and to lower their trading costs.
New service will empower trading members to trade around 1,500 equities and exchange traded funds (ETFs) at Deutsche Brse at the midpoint of the current bid/ask spread of the open Xetra order book.
Xetra MidPoint orders are placed in a closed order book and executed there in continuous trading at the midpoint of the current best bid and best ask price from the open Xetra order book. Price determination can be fully traced.
Larger volumes can be traded with Xetra MidPoint without market impact: with transparent prices and the security that a regulated market such as the stock exchange offers, says Rainer Riess, managing director, Deutsche Brse’s Cash Market Development department. As Xetra MidPoint orders are always executed at the midpoint of the best bid and ask prices, implied trading costs, which constitute the bulk of the total trading costs, are reduced for the investor.
L.D.