Immediacy in order execution is especially in demand from private investors.
With Xetra BEST, banks can offer a better price for immediately executable customer orders in the exchange environment. Through Deutsche Börse's new execution mechanism, these orders are matched with an order from the respective customer's bank. The resulting transactions in Xetra BEST are recorded without delay along with all other transactions in Xetra and assigned an individual code number. Xetra BEST orders that are not executed immediately are automatically posted in the Xetra order book. Banks that want to execute customer orders in Xetra BEST have to function as Liquidity Managers in the Xetra order book. In this way, Deutsche Börse ensures that additional liquidity is provided for in the order book. Xetra BEST helps to counteract a possible fragmentation of the retail market by supporting a further bundling of liquidity on the Xetra trading platform.
Furthermore, the Exchange Council discussed the subject of trading hours. Deutsche Börse AG wants to keep the 8:00 p.m. close of trading and closing auction for electronic Xetra trading and broker-supported trading on the floor of the Frankfurt stock exchange. Trading until 8:00 p.m. (CET) above all considers the interests of German private investors in the cash-market segment as well as institutional investors abroad in the cash and futures markets. Deutsche Börse had most recently discussed an alternative model with market participants that would have moved up the closing auction to 5:30 p.m. (CET), followed by an evening-trading. This model, however, did not offer the cost reduction all the way through the process chain ? from trading to clearing and settlement ? as desired by market participants, it said. Deutsche Börse will further discuss the subject of trading hours with the market particpants.
