Difference between Tradegate, Euronext, Xetra, Börse Frankfurt

This is a general question and not related Bux.

Most of European stocks are available on multiple exchanges. e.g. ASML stock is available on Tradegate, Xetra, Euronext Amsterdam, Börse Frankfurt and few more.

Which one would you choose and why?

That’s a good question @buy_the_dips. I guess there is limited response because BUX is not offering clients to choose the market themself, instead BUX is using a SOR (Smart Order Router).

In case you find it interesting, here a high over explanation.

All the flow of BUX is sent via a SOR. The SOR looks at different market places and will find the best price at that moment and will route the order to that market place. In case of BUX that could be the following marketplaces for the European flow:

  • Primary exchange (Euronext, Xetra, Bolsa de Madrid)
  • MTF ( Equiduct, CBOE)
  • SI (Tower)

What is a Systematic Internaliser?
SI’s are investment firms that deal on own account by executing client orders outside a regulated market. In case of BUX, Tower is the investment firm acting as an SI for our users aggressive order flow and ABN AMRO Clearing Bank is the SI for the Fractional trades. Only aggressive orders can be executed, while an SI is not an exchange and has no orderbook (which is necessary for passive orders). You can consider an SI as the direct counterparty of the trade.

What is an MTF
‘MTF’ stand for Multilateral Trading Facility. In simple words it is an exchange that is not limited to registered securities, like a primary exchange. Primary exchange like Euronext only offer securities that are registered on that exchange. For example German company TUI is not tradable on Euronext Amsterdam, but it is tradable on Equiduct, but also Shell, ING and Banco Santander are available on Equiduct.

The majority of our flow goes to Equiduct. Equiduct has a special proposition, it looks at the market (multiple exchanges), and calculate (aggregate) the best price available at that moment. This price is shared with the market marked/liquidity provider, who will need to match that price. This way investors are guaranteed to get a fair price for their order. You can find more information on how this works here:
Equiduct website

So to answer your question, a SOR is in our opinion better than being able to choose the marketplace and having only one options might not always give you the best price, unless it works similar to Equiduct.

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