1.  Introduction

With this circular, we inform you about amendments to the rulebooks of Frankfurter Wertpapierbörse (FWB^®, the Frankfurt Stock Exchange) by means of the Twenty-third Amendment Ordinance to the Exchange Rules for the Frankfurter Wertpapierbörse (“Exchange Rules”), the Thirteenth Amendment Ordinance to the Conditions for Transactions on the Frankfurter Wertpapierbörse (“Conditions for Transactions”), the Eighth Amendment Ordinance to the Trading Regulation for the Regulated Unofficial Market on Frankfurter Wertpapierbörse (“Trading Regulation”), the Sixteenth Amendment Ordinance to the Fee Regulations for the Frankfurter Wertpapierbörse (“Fee Regulations”) and the Fifth Amendment Ordinance to the Admission Regulations for Exchange Traders at Frankfurter Wertpapierbörse (“Trader Admission Regulations”).

The amendments to the rulebooks regarding Xetra Midpoint will come into effect at a later date which will be communicated separately (see section 3.A.). All other amendments will become effective on 25 November 2024.

The amendment ordinances mentioned above are attached to this circular. The amended rulebooks including the amendment ordinances are available for download on the Xetra website www.xetra.com under the following link: Deutsche Börse Xetra - Rules & Regulations.

Effective date of the rulebook amendments: 25 November 2024

2.  Required action

There is no specific action required by the participants.

3.  Details

A. Introduction of the Xetra Midpoint trading model

The introduction of the new Xetra Midpoint trading model requires a waiver from the Hessian Exchange Supervisory Authority. Currently, the FWB has not yet received the waiver. With the receipt of a corresponding waiver, the new trading model “Xetra Midpoint” will be introduced at FWB. The date of introduction will be communicated separately. This enables FWB Trading Participants to conclude transactions at the midpoint price between the real-time Best Bid and Offer (BBO) price taken from the Xetra orderbook. This requires amendments to the Exchange Rules and the Conditions for Transactions effective the introduction date.

As part of the Xetra Midpoint trading model, four new order types are to be added to the Exchange Rules: Limit Sweep Orders, Market Sweep Orders, Limit Midpoint Orders and Market Midpoint Orders. At order entry, these order types are first entered in an order book that is not visible to the market, the Xetra Midpoint Orderbook. Limit Midpoint Orders and Market Midpoint Orders entered with a minimum execution quantity are supported. In the Xetra Midpoint Orderbook, there is the possibility for the four aforementioned order types to be executed against other orders in the Xetra Midpoint Orderbook at the midpoint price. If no execution takes place, Limit Midpoint Orders and Market Midpoint Orders initially remain in the Xetra Midpoint Orderbook until they are finally executed or deleted.

In contrast to this, Limit Sweep Orders and Market Sweep Orders do not remain in the Xetra Midpoint Orderbook if no execution or only a partly execution immediately takes place after they were entered. Instead, they are automatically transferred by the Exchange-EDP to the Xetra orderbook visible to all Trading Participants. There, they can be executed against any available orders in accordance with the regulations of the Continuous Trading with intraday Auctions model. Sweep Orders have no latency disadvantage compared to orders that are entered directly in the open Xetra orderbook. They provide the opportunity for an improved execution price compared to aggressive executions in the open orderbook.

The introduction of the new Xetra Midpoint trading model requires a waiver from the Hessian Exchange Supervisory Authority. Therefore, the amendments to the Exchange Rules and to the Conditions for Trading associated with Xetra Midpoint are subject to the granting of this waiver. Currently, the FWB has not yet received the waiver. As soon as the Management Board of FWB has received the waiver, it will announce the date of entry into force of the amendments to the rulebooks by posting them on the notice board on the premises of FWB and by publishing them electronically on its homepage. 

B. Editorial changes in the rulebooks

In addition, the Exchange Rules, Conditions for Transactions, Trading Regulation, Fee Regulations and the Trader Admission Regulations have been editorially revised by transferring the terms used in aforementioned rulebooks to Attachment I to the Exchange Rules and defining them there, across all rulebooks. However, this does not include any changes to content.

Should you have further questions or require further information please contact your Key Account Manager or send an e-mail to client.services@deutsche-boerse.com.

Attachments:

• 1 – Twenty-third Amendment Ordinance to the Exchange Rules for the Frankfurter Wertpapierbörse
• 2 – Thirteenth Amendment Ordinance to the Conditions for Transactions on the Frankfurter Wertpapierbörse
• 3 – Eighth Amendment Ordinance to the Trading Regulation for the Regulated Unofficial Market on Frankfurter Wertpapierbörse
• 4 – Sixteenth Amendment Ordinance to the Fee Regulations for the Frankfurter Wertpapierbörse
• 5 – Fifth Amendment Ordinance to the Admission Regulations for Exchange Traders at Frankfurter Wertpapierbörse

Further information