Fund trading on Frankfurt Stock Exchange faster and cheaper with Xetra

1 December 2008

As of today, fund trading on the Frankfurt Stock Exchange operates with Xetra technology; Xetra is Deutsche Börse’s fully electronic pan-European trading system. Fund trading on the Frankfurt Stock Exchange now combines the advantages of floor trading with the faster and cheaper trading via Xetra.

Higher liquidity, narrower spreads and elimination of the 0.08-percent broker commission mean that fund trading is now even more attractive for participants and investors.

Xetra also enables faster execution of orders. Trade on Scoach, the Frankfurt certificates exchange, has shown how order execution times have reduced to only a few seconds since the Xetra technology was introduced in April.

Furthermore, Xetra enables fund trading across Europe; some 260 banks and brokerage firms – around 100 of which are from European countries other than Germany – now have direct access to more than 3,300 actively managed mutualfunds on the Frankfurt Stock Exchange.

With the launch of fund trading on Xetra, Deutsche Börse is systematically pursuing its European growth strategy. “Xetra allows investors to engage in investment fund trading across Europe and benefit from the quickest order execution at the best prices. The Frankfurt Stock Exchange is Germany’s only fund exchange that now offers the efficiency and time-tested price and service quality of Xetra in fund trading too. We will continue to expand our market leadership in fund trading on the Frankfurt Stock Exchange and will also gain new trading participants on the European markets,” said Rainer Riess, Managing Director Cash Market Development at Deutsche Börse.

The Frankfurt Stock Exchange has provided fund trading on the floor since May 2006, and with a market share of around 52 percent of order book volume is Germany’s market leader. In trading fund units via the stock exchange, investors benefit from high flexibility, since in contrast to traditional fund trading via an investment company, investors can buy and sell fund units on the stock exchange within a matter of a few seconds, at any time during trading hours. Moreover, in exchange fund trading there is no front-end load as with investment companies.

In order to trade their fund units via the Frankfurt Stock Exchange, investors should continue to select “Frankfurt Stock Exchange” as trading venue in the order mask. Orders are then executed automatically via Xetra, every trading day from 9 a.m. to 8 p.m.

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