Deutsche Börse — Xetra Bonds

Deutsche Börse — Xetra Bonds

Connectivity

Trading participants benefit from a transparent and
liquid bond market and gain access to a broad investor network via Xetra.
Technical connectivity can be gained through standardised interfaces, such as
the Xetra FIX gateway, currently supporting FIX 4.2 and FIX 4.4.

Designated sponsors and specialists provide additional
liquidity in trading and quote bid and ask prices on a continuous basis. The
first designated sponsors are Optiver, Florint and Close Brothers Seydler Bank,
which also act as specialists. Further specialists in bond trading on the
network include Steubing and ICF Kursmakler.

Continuous trading of German government bonds is settled
via Eurex Clearing, which simplifies internal business processes streamlines
workflows.

Pre- and post-trade analytics

The open Xetra order book shows the five best bid
and ask limits. The market data dissemination offers trading participants
complete transparency pre- and post-trade. Xetra Bonds meets the transparency
requirements of the revised MiFID regulations, which will be mandatory in
coming years. Trade reporting can be acquired through different sources, such
as Bloomberg terminals and the Xetra website.

Participants

Xetra connects 200 participants from partner
exchanges and 230 European banks and brokers admitted to trading on the
Frankfurt Stock Exchange, from 20 countries. Xetra Bonds is a pan-European bond
trading model with transparency and binding quotes. Designated sponsors and
specialists provide liquidity so all market participants profit equally.

Future plans

Xetra Bonds’ product offering and distribution
network will be extended in the future.