Deutsche Börse recently celebrated a significant milestone in the European financial market – the 25th anniversary of exchange-traded funds (ETFs) in Europe. This celebration marked the day on 11 April 2000 when Deutsche Börse made history by introducing ETF trading in Europe, becoming the first stock exchange in the region to do so. This move set a pivotal milestone in the financial industry, leading to rapid development in the ETF market. Today, investors have access to a wide selection of over 2,400 ETFs on Xetra, making it the largest range of listed ETFs in Europe.
As the anniversary year kicked off, Deutsche Börse’s ETF segment experienced its most successful quarter to date. The first three months of the year saw an average monthly trading volume of €28.5 billion, a significant increase compared to the previous year. This solidifies Xetra’s position as the leading stock exchange for ETF trading in Europe, reflecting the growing importance of ETFs in investment portfolios.
Stephan Kraus, Head of the ETF & ETP segment at Deutsche Börse, highlighted the transformation of ETFs into a vital investment product over the past 25 years. ETFs have evolved to become a core component of private retirement planning and long-term wealth accumulation. In line with this growth, Deutsche Börse introduced new measures to enhance the efficiency and transparency of ETF trading on Xetra.
To boost post-trade efficiency, Deutsche Börse, in collaboration with Clearstream, implemented a substantial reduction in settlement fees for centrally cleared ETF transactions on Xetra. This move aims to provide trading participants with cost advantages in settling their ETF transactions, ultimately strengthening on-exchange ETF trading across the value chain.
In March, Deutsche Börse introduced an innovative trading offer for retail investors on Xetra, setting new standards in the market. This service offers automatic price improvement over Xetra reference market prices for ETF trading, ensuring retail investors receive dedicated liquidity within the Xetra order book. Additionally, transaction fees for these executions have been reduced, benefiting investors and enhancing their trading experience.
Furthermore, Deutsche Börse launched a free real-time Level 2 market data offering on its website, boerse-frankfurt.de, coinciding with the 25th anniversary of ETFs. This service provides registered private investors with unlimited access to Xetra ETF real-time push price data, including bid and ask prices and order book depth data for all ETFs and ETPs traded on Xetra. The availability of this market data extends to banks, brokers, and financial service providers, enabling seamless integration into their services.
Deutsche Börse’s continuous efforts to enhance ETF trading experiences, promote transparency, and facilitate cost-efficient transactions underscore its commitment to meeting the evolving needs of investors in the European financial market.