Since April, Boerse Stuttgart has been offering trading participants the possibility to choose to settle foreign currency bond transactions not only in Euro but also in the currency of nominal value. The facility rests on the new developed technical trading platform FXplus (MIC: XSTF). To participate in trading of foreign currency securities, the already existing connection to the Boerse Stuttgart trading system Xitaro can be used. Additionally required is an application for activation as well as corresponding accounts which are enabled for the settlement of securities in the foreign currency. There is no need to adjust anything for existing trading and the settlement in EUR.
Boerse Stuttgart's FXplus platform currently allows approximately 7,000 debt instruments denominated in around 20 different foreign currencies to be traded at the exchange and settled in their nominal currencies. The first trading participant to take advantage of this new service feature was Südwestbank AG. ‘Our expanded service allows trading participants to decide in a transparent manner, already before placing an order, which settlement currency they prefer. For the first time, it is possible to invest in foreign currency bonds without the need for currency conversion and the costs associated with it’, says Michael Görgens, Managing Director Fixed Income, ETF and eSales at Boerse Stuttgart.
Retail investors who have foreign currency cash accounts are also able to take advantage of the new opportunities associated with settlement via FXplus. For example, they are given easier access to investments in emerging economies and to the highly liquid US dollar corporate bond market without the need for currency conversion.
With its hybrid market model, Boerse Stuttgart – the market leader in Germany in exchange-traded corporate bonds and debt instruments from emerging economies – provides top price and execution quality in more than 16,500 tradeable bonds.
