From 1 June 2015, it will be possible to trade selected corporate bonds of Austrian and international issuers on the Vienna Stock Exchange in continuous trading. Additional liquidity will be ensured by market makers.
Advantages at a glance
- Trading from 9.00 a.m. to 5.30 p.m.
- Immediate order execution possible
- Additional liquidity ensured by market makers
- Over 370 Austrian and international corporate bonds tradable
Exchange trading throughout the entire day
Corporate bonds are traded in the Xetra trading model continuous trading with auctions. After the opening auction at 9.00 a.m., trading is continuous until the closing auction at 5.30 p.m. All orders are immediately entered into Xetra's electronic order book in which buy and sell quotes are compared. As soon as the orders on the opposite sides of the order book can be matched, they are automatically executed by the system. The advantage of continuous trading is that trades can be executed at any time.
Market makers ensure additional liquidity
A major benefit of the new trading model is the additional liquidity created by at least one market maker. Market makers agree to enter quotes into the system; a quote is the simultaneous entry of a buy and a sell order into the trading system. Investors profit from the "narrower" spreads (difference between buy and sell price).
Corporate bonds of prominent issuers
The continuously traded corporate bonds are selected bonds issued by Austrian and international issuers. The bond issuers are widely known companies, both locally and globally. Usually, the issuers are listed companies whose stocks are already traded on the stock exchange. The bonds in continuous trading feature high issuing volumes and a large free float to ensure sufficient liquidity on the secondary market.