Eurex, the derivatives exchange owned by Deutsche Börse, plans to introduce a new trading system in Q4 this year, based on Deutsche Börse Group’s proprietary global trading architecture, which is already in use at the US-based International Securities Exchange (ISE).
The ISE's options exchange offers options trading in some 2,000 underlying equity, exchange-traded fund, index and FX products.
The introduction of the new platform at Eurex promises European market participants reduced latency, maximised throughput and greater flexibility. As part of the migration, Eurex will cease to use the current MISS infrastructure and VALUES API interface. The new technology will also be expanded to include tools for further strategy and spread trading.
In addition, new interfaces based on FIX and FAST messaging standards will be provided for exchange participants, replacing or extending the existing ones. Eurex has also promised to ensure a high degree of backward compatibility for the new interfaces, allowing participants to leave their trading applications unchanged in future releases of the new trading system.
Eurex’s move to the new platform is subject to regulatory approval. The initial rollout is scheduled for December 2012, followed by a migration phase, where products will be moved step-by-step from the current to the new trading system.
“Technology is a very important differentiator in today’s competitive global market environment,” said Jürg Spillmann, deputy CEO Eurex, responsible for IT and operations. “The complete overhaul of our trading architecture is a decisive element of our vision to operate markets globally around the clock.”
Deutsche Börse was blocked from entering a merger with NYSE Euronext earlier this month, after the European Commission vetoed the deal on the grounds that it would have created a “near monopoly” in European exchange-based derivatives trading. The exchange group recently upgraded its equities trading platform, Xetra, adding a new ‘top of book’ order type that it claims will automatically improve its market quality by narrowing spreads with every trade.