Deutsche Börse forced to suspend bond e-trading

Deutsche Börse forced to suspend bond e-trading

Deutsche Börse has been forced to suspend trading in Government bonds over the Xetra electronic platform following a legal challenge by two local brokers.

The German exchange operator launched the new trading model with 700 corporate bonds listed in early December with support from three leading brokers - Close Brothers Seydler Bank, ICF Kursmakler and Wolfgang Steubing - chosen from a field of nine candidates.

The system - billed by the Börse as a 'continuous auction with specialists' - was designed to attract private investors and small to medium-sized institutional investors by promising high execution quality in on-exchange bonds trading with continuous quote presence and commission-free near-time execution by the chosen specialists.

The suspension in trading follows complaints from two of the brokers that failed to win a seat as specialists in the system.

Deutsche Börse says it is seeking a court date in January in an effort to overturn the ban.

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