German exchange group Deutsche Börse has unveiled plans to launch Xetra International Market, a service for trading pan-European equities, in the fourth quarter of 2009.
The exchange plans to allow clients to trade European blue-chip stocks and the corresponding equity and index derivatives in 19 European markets, including all constituents of the Dow Jones EURO STOXX 50 pan-European large-cap index, on Xetra International Market and settle in their domestic markets.
The service will offer trading in six markets – Belgium, Finland, France, Italy the Netherlands and Spain – from launch, and will add more countries in a second phase in 2010, depending on feedback from the first phase.
Xetra International Market, which will be a separate order book under Deutsche Börse’s registered investment exchange status, will use the exchange’s Xetra electronic trading system, with trades cleared through Eurex Clearing, the group’s central counterparty. Clearstream, Deutsche Börse’s central securities depository (CSD), will act as the interface between Eurex Clearing and the relevant domestic CSDs for settlement.
Trading tariffs on Xetra International Market will differ from those on the main Xetra system, but details have not yet been finalised.
Clearstream is currently connected to CSDs in the six launch countries and will gradually add more markets.
“Xetra International Market will enable us to significantly strengthen Deutsche Börse’s position in trading highly liquid European equities. We intend to offer our cash and derivatives market clients European blue chips and the corresponding equity and index derivatives in a uniform infrastructure,” said Frank Gerstenschläger, member of the executive board of Deutsche Börse with responsibility for the cash market, in a statement. “This means we will be giving our market participants new trading and arbitrage opportunities.”