Deutsche Börse has partnered with Liquidnet, a US based institutional trading network, to launch a new block trading service on Xetra MidPoint on 29 July 2013, with the latter acting as the block agent for the new service.
Under the agreement, more than 240 members of the German market’s Xetra platform will have the opportunity to trade directly with Liquidnet’s network of 700 asset managers with minimum market impact and maximum price improvement.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Xetra MidPoint’s Block Agent model will combine the liquidity of multiple sources, increasing the probability that large orders will be executed at midpoint.
The venture will offer institutional investors more reliable access to large block orders that were traded at the midpoint of two transparent prices.
Martin Reck, cash market managing director at Deutsche Börse, said: "Connecting Liquidnet provides our members the opportunity to execute block sized orders in a manner that serves the specific requirements of this segment, with all advantages of exchange trading via Xetra MidPoint.
"The Block Agent model offers access to considerably greater block liquidity for Xetra MidPoint execution, increasing execution probability for all Xetra participants."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMark Pumfrey, head of EMEA at Liquidnet, said: "We have long championed borderless equity trading by opening up investment opportunities for our members in markets where they can create value and improve their investment performance.
"When combined with an average execution size of 1.1 million on our platform, the Xetra MidPoint liquidity will significantly enhance institutional block trading in German stocks," Pumfrey added.
All German shares that can be settled via the central counterparty may be traded using the new model, including those of the four selection indices DAX, MDAX, TecDAX and SDAX, and other small and midcaps.
