1. Introduction

Deutsche Börse plans to introduce T7 Release 12.0 on 20 November 2023 for the trading venues Xetra and Börse Frankfurt. The simulation for T7 Release 12.0 is planned to start on 11 September 2023.

This circular provides T7 Trading Participants with the T7 Release 12.0 timeline, planned scope and the communication schedule.

The following enhancements will be introduced in T7 Release 12.0:

• Xetra Retail Order Execution
• MiFID II/MiFIR adaptions
• Post Trading Service Changes

Simulation start:   11 September 2023      
Production start:   20 November 2023 

2. Required action

Trading Participants are requested to initiate the preparatory steps to ensure software readiness for the new T7 Release 12.0 on 20 November 2023.

3. Details of T7 Release 12.0

A. Introduction Schedule and Communication Calendar

Please refer to the attachment for the Introduction Schedule and the Communication Calendar. 

The Introduction Schedule provides an overview of the timeline.

The Communication Calendar lists all important dates on which documents for T7 Release 12.0 will be published, including existing documents that will be revised for T7 Release 12.0.

In July 2023, Frankfurter Wertpapierbörse (FWB^®, the Frankfurt Stock Exchange) will publish the detailed preliminary Release Notes listing the functional and technical enhancements that will be available in T7 Release 12.0.

Deutsche Börse will provide a dedicated release simulation environment to give Trading Participants and Independent Software Vendors (ISVs) the opportunity to perform comprehensive testing of their trading applications, independently of the T7 production environment. 

In addition to the T7 Release Simulation, Trading Participants can also use the T7 Cloud Simulation that allows Trading Participants and ISVs to test against the current T7 production and simulation software versions. In this environment, Trading Participants can initiate predefined market scenarios and test specific strategies more easily than in a shared environment. The T7 Cloud simulation is permanently (24/7) available for a fixed price per hour and is accessible using an SSL-encrypted internet connection. The T7 Cloud Simulation will start in advance to the usual Release Simulation.

For more information on the T7 Cloud Simulation, please refer to the Xetra website www.xetra.com under the following path:

Technology > T7 trading architecture > Cloud Simulation

B. Scope of T7 Release 12.0

The following sections provide an overview of the functional enhancements which will be introduced in T7 Release 12.0 among other enhancements.

Xetra Retail Order Execution

With T7 Release 12.0, Xetra (MIC: XETR) will support a dedicated Xetra Retail Order Execution functionality during the main trading hours. The new functionality is a best execution offering for retail orders. The new service enables for an execution price better than the price within the current order book by additionally considering quotes from dedicated Retail Liquidity Providers (RLP) for the execution of retail orders. 

Trading Participants registered as a Retail Member Organisation (RMO) will be enabled to enter retail orders via the existing access just by using a new trading capacity, which extends the existing Agency capacity. Retail orders might get executed against the firm quotes of the RLPs and/or the regular order book.

The RLP concept follows a competitive approach and is open for all Trading Participants of the FWB^®. This competitive RLP approach fosters additional price improvements targeting the best execution of retail orders. Registered RLPs can enter firm quotes/orders via their existing access just by using a new trading capacity, which extends the existing Proprietary/Market Making capacity.

Since RLP quotes will not interact with other RLP quotes or other non-retail orders in the orderbook, the RLP quotes will not be disclosed via the T7 order book data streams, but via the Consolidated Exchange Feed (CEF^®).

To ensure a high level of transparency, the prices of an execution of retail orders against the quotes of an RLP will be flagged as retail prices.

MiFID II/MiFIR adaptions

With T7 Release 12.0, Xetra and Börse Frankfurt (including Börse Frankfurt Zertifikate) will introduce a dedicated validation scheme for the fields Execution ID, Investment Decision ID and Client ID in all trading interfaces. The validation scheme relates to the submission requirements of the short code and algo ID information in the transactions. For better readability, hereafter, the term “short code” shall also include the algo ID. The following validations will be in place:

• Execution ID

• Investment Decision ID

• Client ID

Submission of a zero as short code (or algo ID) will no longer be permitted.

Post Trading Service Changes

Contract Notes reports for the trading venues Xetra and Börse Frankfurt (available in SWIFT MT512) will be decommissioned (as communicated via Xetra circular 050/22).
 

Attachment:

• Introduction Schedule, Communication Calendar

Further information