Eurex to Introduce New Trading Platform

Terry Flanagan

The European derivatives trading platform will launch a new trading system by year’s end.

“Technology is a very important differentiator in today’s competitive global market environment,” said Jurg Spillmann, deputy chief executive officer of Eurex and responsible for IT and Operations, in an emailed statement. “With the move to the new system, we again deliver a best-in-class solution to our exchange participants. They will get more choice and greater performance, and the reliability they can expect from Eurex. The complete overhaul of our trading architecture is a decisive element of our vision to operate markets globally around-the-clock.”

The first rollout of the new trading system will start December, pending regulatory approval, followed by a migration phase, where products will be moved from the current system to the new system. It took about three months for the International Securities Exchange to complete the rollout of Optimise.

The new technology will include a flexible operating system, an internal messaging architecture for minimum latency, high speed communications and reliable database systems. In the future, time-to-market for introducing new products and features will be significantly reduced. And, new tools for further strategy and spread trading will also be delivered.

The new trading system will be based off the Optimise architecture used at the International Securities Exchange, the U.S. based options market owned by Frankfurt-based Deutsche Borse. Jointly developed by the technology teams at Deutsche Borse and the ISE, the company touts Optimise for its speed, performance, efficiency, capacity, throughput, reliability and availability. The platform, which runs out of two data centers, reduced latency compared to the previous system by about 90%, according to the ISE. Because of the flexibility of the technology, it can be adapted to serve as the backbone of all the Deutsche Borse Group Exchanges.

Since implementing its Optimise trading platform in April 2011, the ISE has seen steady gains in market share and order flow as volatility reached year-to-date highs and order flow spiked to record levels. It was the second largest equity options exchange for January, with market share of 18.7%, excluding dividend trades. The ISE plans to provide updates to the platform every two months, with two releases coming in the first third of 2012.

The announcement comes a week after NYSE Euronext and Deutsche Borse said they would focus on their individual strategies, cancelling their merger after EU regulators nixed their deal. The dominance that the combined Eurex and NYSE Liffe would have in European exchange-traded derivatives was the main hang-up for the regulators.

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