The quality standard Börse Frankfurt Zertifikate Premium at the Frankfurt Stock Exchange makes trading in these products transparent and fair.
The very high demands placed by the Frankfurt Certificate Exchange on issuers who wish to trade products in the Premium Certificates segment of the Frankfurt Stock Exchange guarantee price security and transparency.
In principle, issuers must provide continuous buy and sell prices for their own products throughout the entire trading period. This ensures that the products are tradable at all times, even if there is no turnover in a product for long periods of time.
- These buying and selling prices are also called bid and ask prices or quotes. Investors can buy a product at the current ask price and return it to the issuer at the bid price.
- The difference between the two prices is the trading spread. The smaller the spread and the larger the volume provided, the better it is for investors, because the spread between the lower selling price and the higher selling price is a cost factor in trading.
- Issuers are obliged to transmit bid and ask prices to the technical infrastructure of the exchange via two redundant dedicated lines.
- The courses must be valid for fixed minimum volumes. For investment products this minimum order size is EUR 10,000 or 10,000 units, for leverage products EUR 3,000 or 10,000 units. As a rule, significantly larger orders are also executed at the current bid or ask price.
Electronic trading via the T7 system
Since August 2020, investment and leverage products are trading electronically via the T7 infrastructure on the Frankfurt Stock Exchange. T7 is one of the fastest and most powerful trading systems in the world. It sets standards in terms of liquidity, transparency and speed - at the lowest cost. This technology is also being used by Eurex Exchange, European Energy Exchange (EEX) and the Vienna Stock Exchange among others.
Even before the migration from Xetra to T7, most orders in investment and leveraged products in Frankfurt were executed in less than 10 seconds.
August 2020, © Deutsche Börse AG