Scoach, a certificates and warrants exchange, has begun trading on the new version of Xetra, Deutsche Börse’s electronic trading platform.
Scoach is a joint venture between SFMS and the Deutsche Börse, and commenced trading at the beginning of 2007.
From April 28, 260 banks and brokerage firms will have direct access to around 300,000 structured products, which were previously only traded on the Frankfurt Stock Exchange.
The new version of Xetra has two new market models, with the hope that it will enhance liquidity in securities trading. The first will allow certificate and warrant issuers to directly quote bid and ask prices for their own products on an ongoing basis. The second lets specialist liquidity providers execute orders based on the issuer quote.
Xetra has also increased their capacity capabilities, and upgraded to high performance processors to boost system and algorithmic trading speeds.
“The new Xetra version will allow the bundling of liquidity for securities from all asset classes on a highly efficient platform, thus offering investors throughout Europe super-fast execution at the best possible prices,” said Frank Gerstenschläger, executive board member responsible for the cash market at Deutsche Börse and member of the supervisory board of Scoach, in a statement.