Deutsche Borse implemented the improvements for algorithmic trading, in which computers evaluate trading signals and automatically place buy and sell orders in the system. Algorithmic trading is dependent on extremely short round-trip times in order for the system to be able to react quickly and flexibly to market movements.
The average data transfer time for a round trip is on average 16 milliseconds for the fastest participants. The fastest round-trip time is less than 10 milliseconds, making Xetra one of the world’s fastest trading systems. This will come as good news to the 4,600 traders from major banks and brokerage firms in 18 countries connected to Xetra.
More than 30% of the order book volume and more than 40% of the orders on Xetra are already computer-generated, and this is said to be a growing trend.
