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Cash Market regulatory services Guiding you through tomorrow’s regulatory requirements

Market players have been experiencing more and more regulatory requirements; in fact, more than ever before. And there are indications that the wave of regulatory reform is not over yet. Consequently, Deutsche Börse Cash Market is committed to adhering to the high regulatory standards and to supporting market participants throughout the process of such regulatory change.

MiFID II/MiFIR

One of the cornerstones of regulatory change was the revision of the Markets in Financial Instruments Directive II (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). MiFID II/MiFIR essentially triggered market structure changes in European cash equity markets. The original legal framework entered into force on 1 July 2014. MiFID II, which is intended to close gaps in the law left open by MiFID I, has been in force since 3 January 2018. Due to the immense number of requirements, implementation has posed great challenges for the financial sector.

Deutsche Börse Cash Market ensured achieving the full MiFID II/MiFIR compliance well ahead of the application date. Any technical changes that were required to achieve compliance with the MiFID II/MiFIR regulations have already been implemented with the new Xetra® Release 17 and T7® Release 6.

High-frequency Trading Act

With the introduction of the High-frequency Trading Act (HFTA) in May 2013, Germany became the first country in Europe to regulate algorithmic trading and high frequency trading (HFT) well ahead of MiFID II.

Our Cash Market is prepared to counteract any HFT risks that might appear such as increased volatility and market manipulations through comprehensive safety measures like plausibility checks and volatility interruptions, thereby safeguarding proper conduct of trading.

Nevertheless, HFT is an important component of electronic markets. HFT participants provide liquidity to markets, dampen volatility and reduce total transaction costs. Deutsche Börse Cash Market offers various connectivity alternatives designed to meet the needs of HFT firms. These interfaces provide exchange participants with flexible, low-latency access to Xetra. Since mid-2017, they have had access to Xetra on the new T7 technology.

High-frequency trading act

Find an overview of a number of key elements of the German High-frequency Trading Act here.