04 July 2017
Frankfurt
Reporter: Drew Nicol
Deutsche Börse engages T7 for cash
Deutsche Börse Group’s Xetra trading platform has migrated its cash trading to its new T7 facility for the Frankfurt Stock Exchange, putting both Xetra and Eurex derivatives trading on the same system.

According to Deutsche Börse Group, the new system reduces latency, meaning the time for order processing, even further. Harmonising Xetra and Eurex trading technology also produces significant synergies and means lower development and maintenance costs.

Deutsche Börse also confirmed that Eurex trading participants will benefit from easier access to Xetra, while regulatory requirements and technical updates can also be integrated into the trading system more quickly and efficiently.

The Xetra trading platform on the Frankfurt Stock Exchange is the global reference market for German equities and the leading market for European exchange-traded funds trading.

Roughly 1,000 international equities and 1,500 exchange-traded products are currently tradable on Xetra.

Eurex Exchange, the European Energy Exchange and the Bombay Stock Exchange already use T7 trading technology, while the Vienna Stock Exchange and the Irish Stock Exchange will soon migrate their systems to T7.

Hauke Stars, Deutsche Börse executive board member responsible for cash market, pre-IPO and growth financing, said: “The new trading technology T7 gives investors and exchange-listed companies access to a sustainable and extremely reliable system that already has a proven track record on different international stock exchanges.”

“Trading participants specifically benefit from cash market and futures trading synergies and further reduction in latencies.”

The migration to T7 follows Eurex’s move to become the only exchange that offers futures and options on all major MSCI indexes this week, in response to the launch of futures and options on the MSCI EAFE index.

Eurex promises the new products will address the structural behaviour changes of the buy side.

According to Eurex, passive products like exchange-traded funds are gaining momentum and this affects the derivatives markets because it creates new hedging needs for asset managers.

Mehtap Dinc, head of derivatives product development at Deutsche Börse, said: “The European market for corporate bonds plays a key role in the financial ecosystem. It has grown consistently after the financial crisis, both in terms of market participants and overall assets under management.”

“The new environment creates demand for innovative hedging solutions in the form of exchange-traded derivatives. The same is true for MSCI products.”

“With more providers of MSCI-related vehicles and growing competition on pricing these, an increased need for cost-effective and efficient hedging tools in the form of futures and options arises.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Stock loan falls short for buy side as liquidity source
25 July 2017 | London | Reporter: Jenna Lomax
Securities lending was voted the least popular source of liquidity in a survey of European buy-side heads of operations
Hedge fund H1 gains best since 2009
25 July 2017 | London | Reporter: Drew Nicol
The hedge fund industry has recorded one of its strongest H1 performance periods since the financial crisis, according to data and intelligence provider Preqin
Calypso gains stake in Sernova Financial
25 July 2017 | London | Reporter: Drew Nicol
Sernova Financial, which already leverages the Calypso Cloud platform, recreates the shared infrastructure and service items of clearing brokers
RMA keynote The Mooch heads to the West Wing
24 July 2017 | Naples | Reporter: Drew Nicol
Anthony Scaramucci, who appeared as keynote speaker at last year’s RMA securities lending conference in Florida, has been appointed as the White House communications director
Northern Trust’s Q2 lending revenue stutters
24 July 2017 | New York | Reporter: Drew Nicol
Northern Trust saw its securities lending earnings fall to $24.6 million in Q2
New recruits for BNY Mellon's alternative investment team
21 July 2017 | New York | Reporter: Drew Nicol
BNY Mellon has made two senior appointments to its alternative investment services team
Euroclear achieves record-breaking H1 collateral volume
21 July 2017 | Frankfurt | Reporter: Jenna Lomax
Post-trade service provider Euroclear saw achieved "record levels" of collateral outstanding through its Collateral Highway in the first half of 2017