Deutsche Börse and Eurex will offer trading participants an integrated market for liquid trading in euro-denominated US equities, exchange-traded funds and stock options on the Xetra and Eurex trading platforms.
The trades will be settled within Clearstream Banking and via the existing link to the US central securities Depository Trust and Clearing Corporation (DTCC).
The US segment is the first building block in the so-called Global Markets Concept. The next step on the agenda is the creation of segments based on the Dow Jones Stoxx 50 and Dow Jones Euro Stoxx 50 indices as well as for the Asia-Pacific region.
The Global Markets Concept combines the competencies of Deutsche Börse as a European market for equities and index funds, Eurex as a derivatives exchange and Clearstream International as a settlement organisation.
The three will offer trading and clearing for US equities, exchange-traded funds and stock options starting in September. The Xetra US Stars segment on the Xetra trading platform will contain all stocks in the Dow Jones Industrial Average (DJIA) 30, S&P 100, Nasdaq 100 and Dow Jones Global Titans 50, bringing the total segment to roughly 200 equities.
Goldman Sachs and Morgan Stanley will act as US Market Experts, making markets in US stocks and providing liquidity. Baader Wertpapierhandelsbank, Finacor Rabe and Wertpapierhandelsbank Seydler will funtion in a similar capacity within the German market. Clearstream Banking will handle the transaction settlement in collective safe custody, with US securities treated like domestic securities.
Deutsche Börse expects exchange-traded funds on the Dow Jones Industrial Average and Dow Jones Global Titans 50 index to be forthcoming as further products for trading in its XTF segment.
The Eurex derivatives market will initially list around ten options on highly liquid US stocks including Cisco, IBM, Intel and Microsoft. At least three market makers per stock option will provide the underlying liquidity. Futures and options on the Dow Jones Global Titans 50 index, which contains the shares of 27 US companies, have already been trading in the Eurex equity index derivatives segment since the end of April.
Dow Jones Indexes will incorporate the prices of US stocks traded on Xetra in the Dow Jones Industrial Average (DJIA) and Dow Jones Global Titans 50 index calculation. This means that when the new Xetra US Stars segment is launched at Deutsche Börse, the DJIA will already be calculated from 9am to 3.30 pm (CET) i.e before the US market opens.
The Dow Jones Global Titans 50 index calculation will also reflect the Xetra prices before trading opens in New York. Until now, only the closing prices of US stocks have been included during this time period.