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Deutsche Borse pushes ahead with trading overhaul.

Exchange group Deutsche Borse has confirmed that it will stop floor trading on the Frankfurt Stock Exchange, in favour of the Xetra specialist model for shares and bonds, from May 2011.

The transition away from floor trading was initially planned for 28 March 2012, but was brought forward to next year by the exchange's council.

From 23 May, trading of German equities and bonds will take place via the electronic Xetra trading platform combined with specialists that will be responsible for making markets.

The specialists will operate in the trading hall of the Frankfurt Stock Exchange, and will no longer use the Xontro trading platform.

The exchange says all lead brokers that work on the Frankfurt Stock Exchange floor have declared their willingness to take on specialist roles in Xetra and have consented to the early termination of floor trading.

According to Deutsche Borse, the switch will strengthen the position of the Frankfurt Stock Exchange in the face of increasing competition for liquidity in Europe. The Xetra specialist model is already used for trading structured products on the Scoach marketplace, a joint venture with Swiss exchange and clearing firm SIX Group, and fund trading on the Frankfurt Stock Exchange.

"The Exchange Council welcomes the consensual agreement of the lead brokers to end floor trading before the expiry of the planned transition period," commented Lutz Raettig, chairman of the Exchange Council. "With today's decision, we are responding to the changes in the competitive and regulatory environment of the stock exchange and ensuring that the Frankfurt Stock Exchange can strengthen its competitive position while at the same time optimally fulfilling its economic role."

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Publication:The Trade
Date:Nov 24, 2010
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