German exchange Deutsche Börse will restart bond trading on its Xetra trading platform after having an interim injunction lifted by the Higher Regional Court of Frankfurt.
From 11 October, 700 corporate bonds will be available on Xetra, which the exchange says combines the advantages of electronic trading with the benefits of specialist support.
Bond trading on Xetra was originally launched on 1 December 2009, lasting just over a month before the interim injunction, issued by the Frankfurt Regional Court on 5 January 2010, took effect.
Bond trading was suspended on Xetra after two trading participants failed in their applications to become market makers, referred to by Deutsche Börse as specialists, and subsequently applied for an injunction. According to the exchange, the aim of the selection process was made on the basis of set criteria and done to ensure investors are able to obtain good price quality, low costs and high execution quality for their orders. Deutsche Börse’s position was not heard by the court at the time.
Deutsche Börse said the injunction was put in place to prohibit the exchange from disadvantaging the two brokers by limiting electronic bond trading to three brokers that were approved as specialists at the end of last year.