021/2026: T7 Release 14.1: Auction Transparency, Auction Volume Discovery and Quote Request Parameters

1.   Introduction

This circular informs you about two new functionalities launching on 1 June 2026:

• Enhanced Xetra Auction Transparency
• Xetra Auction Volume Discovery (AVD)

To ensure a smooth transition, both functions have been available for testing in the T7 simulation environment since 17 April 2026.

Additionally, new trading parameters for the Quote Request functionality will come into effect on 1 June 2026. This affects the Deutsche Börse Frankfurt trading venue (MIC: XFRA). The parameters will initially apply to structured products in the "Continuous Auction with Specialist" trading model. In the future, they will also be applied to the "Continuous Auction with Market Maker" trading model. However, the technical implementation for this second model will take place at a later date.

Further details on the changes and their technical implications have already been communicated in the T7 14.1 Release Notes.

2.   Required action

Trading Participants are requested to test the new functions (Xetra AVD and Enhanced Auction Transparency) in the T7 simulation by Friday, 29 May 2026, at the latest. A test is also necessary for participants who continue to use a version 14.0 trading interface after the release, as they could still be involved in AVD executions (see section 3. B.).

Market Makers and Specialists must adapt their response times in the trading of structured products to the new trading parameters of the Quote Request functionality. 

3.   Details of the initiative

A.  Enhanced Auction Transparency for the trading venue Deutsche Börse Xetra

The enhanced auction transparency opens the Xetra order book during auctions. This affects all auctions in the "Continuous Trading with Intraday Auctions" trading model, including retail auctions and volatility interruptions.

• The full market depth is visible via the EOBI.
• The first ten price levels are available via GUI, EMDI, and MDI.

This improves the transparency of price formation without changing the existing auction procedure. Iceberg orders will be displayed with their total tradeable quantity during auctions.

B.  Xetra Auction Volume Discovery (AVD) for the trading venue Deutsche Börse Xetra

AVD offers a new way to access auction liquidity. Trading Participants can enter AVD orders specifically for the opening, intraday, or closing auction. Entry is possible until shortly before the price determination. AVD will be offered for all securities on Xetra.

How it works:

AVD orders neither participate in the call phase nor in the price determination. They are executed immediately after the price determination at the determined auction price against the auction surplus and other AVD orders. Any remaining quantities are immediately deleted.

Advantages:

• AVD orders do not influence price formation.
• They never appear passively in the order book, which keeps trading interest hidden.

AVD executions will be indicated to market participants with a special flag.

Broker internalization:

Participants can flag their AVD orders for Broker internalization. Opposing orders from the same participant with an identical broker internalization flag will then be executed against each other with priority.

Fees:

In principle, normal fees apply to AVD executions. However, if AVD orders from a Trading Participant with identical broker internalization flags are executed against each other, no transaction fee will be charged for these transactions (as announced in Deutsche Börse Circular 015/26).

Simulation and special case for backward compatibility:

Participants who continue to use T7 version 14.0 for their trading interfaces after 1 June 2026 cannot enter AVD orders. However, their normal orders can be executed against AVD orders if they are part of the auction surplus. It is recommended to test this case in the simulation, as AVD executions will be newly flagged in the "MatchType" field in execution and trade confirmations. Details are available in the T7 Release 14.1 Participant Simulation Guide and in the ETI and FIX LF documentation.

Please also note the backward compatibility information in chapter 3.5 of the T7 Release 14.1 Enhanced Trading Interface (ETI) Manual and in chapter 4.5 of the T7 Release 14.1 FIX LF Manual.

C.  Quote Request functionality for trading structured products on the Börse Frankfurt trading venue

The following parameters of the Quote Request Solution will be adjusted:

• RfQ Lifetime: The validity period of a request within which a Specialist/Market Maker can provide a quote.
• RfQ Reply Lifetime: The validity period of a quote within which the requester can place an order.
• QRS Order Lifetime: The validity period of the order in the order book within which it can be executed.
• Maximum number of quote requests: Limits the number of requests per participant per day.

If one of the above validity periods expires without a corresponding reaction from the requester or responder (Specialist/Market Maker), the respective quote request will lapse.

The following parameter values will be set for the respective trading model for trading structured products starting 1 June 2026:

For the Continuous Auction with Specialist trading model, the parameter changes mentioned above refer exclusively to the trading of structured products; existing quote request configurations for other product segments remain unchanged.

The technical implementation of the Quote Request functionality in the Continuous Auction with Market Maker trading model will occur at a later date. The final date for the technical launch will be communicated to you separately.

Further information