XONTRO, the professional order routing, trading and settlement system
Under its former product labels BOSS-CUBE and BOEGA, XONTRO continues to represent an established, professional order routing, trading and settlement system since 1992. Under its new name, XONTRO stands for a dynamic system offering extended functionalities. Our aim is to continuously realize improvements, to simplify the de-centralized system access, and, based upon the XONTRO fundamentals, to develop new interfaces for new markets and market participants.
Marking a constant within the market.
As an electronic, intermediary-based trading system set up for the German stock exchange floors, XONTRO supports the contraction of trades in all quoted – national and international – securities.
XONTRO comprises the order routing and trading system XONTRO Order, as well as the trade enrichment and settlement system XONTRO Trade. Thus, XONTRO supports the entire trading work chain, beginning with the electronic order routing, including the intermediary-based pricing functions, and up to the trade settlement functions, as well as forwarding the trades onto the delivery procedures.
Access to XONTRO is site-independent and thus globally available for domestic as well as for international participants.
XONTRO is a system designed to process high volumes of transactions, capable to process more than one million orders per day, yet thereby keeping the average response times below one second.
World wide access within a second.
Order routing via XONTRO with modern technology
XONTRO Order, by means of a highly available and fail-safe network, offers a fast path for order transmission from all trading participants connected, straight into the electronic orderbook of the pricing intermediary (specialist) responsible for the instrument traded at the respective exchange floor. By using the order routing functions, the trading participants have a de-centralized access to each and every security listed anywhere in Germany at any time.
Since 2010, XONTRO also uses the FIX-formate.
Computer-based price determination
As a computer-based decision-making system, XONTRO enables the pricing intermediaries (specialists) to handle the orders routed in a common orderbook; in addition, the intermediaries’ price fixing processes are supported as well. The system displays the cumulated buy and sell offers to the pricing intermediary (specialist); thence, applying the auction method, it suggests a fair price which will result in the highest turnover possible. Alternatively, by means of a propriatery interface, the pricing intermediary may as well “read in” all orders into his own EDP system outside XONTRO, and electronically merge them with additional data and information.
In contrast to a fully automated trading system, the pricing intermediary may in addition assume a liquidity-generating function by “stepping into” trades that would otherwise not be executed automatically, as a (temporary) counterparty, too.
Moreover, the pricing intermediary has the option to interfere as a market regulator.
Intersection between the systems
Within the trading process chain, XONTRO Trade stands between the trading facility and the share- and money-wise delivery of a security transaction. Almost all trades having been executed within the German trading systems (e.g. XONTRO Order, Xetra, MAX-ONE) are settled via XONTRO Trade. Thus, XONTRO Trade represents the interface between the trading systems and Clearstream Banking.
Additional trading systems may be attached onto this interface with ease.
Trades having been negotiated between banks (e.g.) by telephone (OTC-trades) may be entered into XONTRO Trade directly. For these trades, XONTRO Trade generates an audit-proof documentation in the form of trade confirmations. This functionality may not only be used for the securities listed, but also for instruments traded off-exchange.
Flawlessly supplemented and documented.
The trading systems by themselves deliver only a few data, such as nominal amount and price. By accessing the instrument base data, XONTRO Trade assumes the so called “Trade Enrichment” functions. Within this step, the trade data are supplemented by the instrument base data, as well as by the following calculations: Market value, total amount payable, fees and charges, commisions and expenses, compensations, brokerage and accrued interests.
All trade data are completely documented by means of the brokers’ diaries for the intermediaries and the contract notes for the banks. Thus, XONTRO Trade represents the most important interface towards the banks’ back offices. These data can be made available to the receiving agent electronically as desired, either in real time, or in an hourly rhythm, or once bundled after trading session termination.
Accrued interest module
The accrued interest module owns a direct access to the instrument base data in order to calculate the accrued interests for the bonds trading segment. Here, the accrued interests for all presently available design variants for bonds, acording to all known calculation methods, can be calculated.
XONTRO enables a fast routing of orders straight into the electronic orderbook of the responsible intermediary at the relevant exchange floor.
Flawless order stream surveillance
The electronic broker’s interface enables the pricing intermediary to exert a flawless supervision of the incoming orders, and thus to execute an immediate on-demand price fixing.
Immediately after the price fixing has been finished, the bank receives an electronic information about the orders executed, and can thus initiate the final payoff calculation against their customer. Fast execution confirmations in combination with realtime information distribution are the basis for the day trading business.
Response times below 1 second per transaction emphasize the capability of XONTRO. On the average, the times needed for the end-of-day batch processes do not exceed 30 minutes.
In XONTRO, any arbitrary lot size quantity may be traded, including one share. Thus, XONTRO can be regarded to be the most suitable trading system for the private investor.