Deutsche Börse has introduced a new version of its Xetra trading platform for cash equities, which introduces new features including a strike match order designed to reduce risk for trading in equity options.
The strike match order creates a link between Xetra and Eurex, Deutsche Börse’s derivatives trading platform, with the intention of reducing the ‘pin risk’ associated with equity options.
A strike match order has two limits and can only be used in the closing auction. The first limit corresponds with the regular limit of a limit order. With the second limit the minimum price for a buy order or the maximum price for a sell order is determined. The strike match order has been designed for users who wish to perform their hedging transactions on Xetra in a more efficient way.
In addition, Xetra 12.0 offers users the clearing member stop button, allowing clearing members to stop the the trading activities of their non-clearing members if they exceed their agreed trading limits.
Xetra 12.0 also introduces a standardised FIX interface supporting FIX versions 4.2 and 4.4. The FIX interface will initially cover order management and trade confirmations. In addition, the upgrade adds a market data interface for distribution of order book information, aggregated and netted on price level. The interface for netted market data will also use FIX.