Who is accustomed to milliseconds trade, for the minutes are already a painfully long time. On the Frankfurt stock exchange and no orders went through on Wednesday but for three hours in the main trading system, i.e. a good 10 million milliseconds. No Dax, no stock quotes, but also no major signal transducer for the European bond market, such as the Bund Future, since also the derivatives exchange Eurex was affected by the trade default. Similarly, the EEX energy exchange in Leipzig and the stock exchanges in Vienna, Budapest, Prague, Sofia, Zagreb, Ljubljana and Malta, which use the German trading system T7.
editor of the Frankfurter Allgemeine week.F. A. Z.
It was introduced in 2017 for the stock trade and the old Xetra trading system be replaced. This is currently running on the Frankfurt stock exchange and also on Wednesday smoothly. But his days are numbered. 24.August is supposed to be for Xetra and on the final circuit, and also the floor trading will be transferred to T7.
"We have understood the cause of the error
removed replace" but Why is the old reliable System through the vulnerable? The Deutsche Börse is different. She is holding T7 for more powerful. Why it came now, yet again, to make a longer commercial failure, having been on 14.April through more than four hours, the systems shut down, which they justified with a "faulty purchased Software". This was also at the 14.April was the reason. "We have understood the cause exactly and the error is eliminated," - said of the stock market.
"The System is running stable now. We expect it to remain that way.“ The market participants expect. You register to the attention of the susceptibility. "Of course we have a Plan B for such cases," says Christoph Hock, head of securities trading of the Fund company Union Investment. "If we have to act in the time of the system failure urgent, then we work with great brokers, or on trading instruments other global stock exchange platforms."
a lack of orientation in German values
But the quality of the courses is without the reference market of the German stock market for the worse. The Union Investment balances between the higher trading costs during the system failure and the risk that a proposed trade transaction to wait until the systems are working again, at the risk that important business or economic events that could move the rates in the wrong direction. "The last failures were the days, fortunately in rather quiet trading, so that we did not have to act necessarily," says Hock. "But we have deposited with the stock exchange also shows our desire to shorten the duration of trading interruptions in the future."
In such moments, shows how important is the reference market for all market participants. Around 70 percent of turnover in the Dax shares are transacted on the German stock exchange on T7. The System falls, there is a lack of orientation in German values, to the alternative trading venues, the revenue and the uncertainty of which is paid with higher cost. Some market participants are wondering whether it is really useful to have the derivatives exchange Eurex on the same System as the stock trading.Updated Date: 01 July 2020, 14:20