Designated Sponsor requirements

Designated Sponsor requirementMandatory precondition for Continuous Trading

Designated Sponsors for shares

Xetra® trading is of great importance for companies seeking greater visibility on the capital market and thus access to a broad international investor base. However, not all companies have sufficient liquidity and therefore need the support of a designated sponsor.

The Designated Sponsor comitts himself to provide buy and sell prices at all times so that investors can buy or sell their shares at any time. The higher the certainty of being able to buy or sell a company's shares at any time, the greater the willingness of investors to invest in these values.

The continuous trading of the share on Xetra is also an important prerequisite for inclusion in a Deutsche Börse selection index. The commitment of a designated sponsor can therefore pay off.

Measuring liquidity

Liquidity is measured on the basis of order book turnover and the Xetra Liquidity Measure (XLM). The XLM measures liquidity in the dimensions of width, depth and immediacy.

An equity is declared to be sufficiently liquid if on a daily average over the previous three months the following criteria are met:

  1. Xetra Liquidity Measure (XLM) <= 100 bp (1 basis point = 0.01%)
  2. Order book turnover >= €2.5 million

If one of the two criteria is not met, the share requires the involvement of at least one Designated Sponsor for admission to Xetra trading.

Issuers can consult the list “Liquidity category A” below to see whether a share is classified as having sufficient liquidity. Please note that the list is updated quarterly.

Designated Sponsors for ETFs and ETPs

In accordance with the conditions for participation in the segment, issuers of Exchange Traded Funds (ETFs) or Exchange Traded Products (ETPs) must engage the services of at least one Designated Sponsor for each of their products.

Market Status

XETR

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