Xetra: the evolution of an electronic market

Abstract

Since launching in 1997, the name Xetra has become synonymous with the electronic trading of securities – not just in German blue chips and other equities, but also in ETFs where it is a pioneer and the leading European trading venue. This article takes a look back at the history of Xetra and electronic trading in general, from 1997 to the present day. Alongside detailing key developments in Xetra’s history – for example, the launch of ETF trading in 2000 and responses to regulatory changes such as MiFID in 2007 – the article also examines the market models followed by Xetra and the protective mechanisms in place to ensure the security of electronic markets. Finally, the article concludes with a brief discussion of Xetra’s 2017 move to the state-of-the-art T7 trading infrastructure. As well as improving latency and throughput, the move to T7 brought Xetra into line with Eurex Exchange and thus greatly simplified access for members trading on both platforms.