Deutsche Brse plans to expand the scope of tradable instruments on its pan-European platform Xetra International (XIM) market from 86 securities at present to 1,000.
By summer 2010 the existing offering for France, the Netherlands, Belgium, Finland, Spain and Italy will be enlarged by 700 securities. In this way all EURO STOXX instruments from these countries and additional highly liquid ones will become tradable and will be settled in their home countries.
In the second half of 2010 Deutsche Brse plans to admit to trading securities from the STOXX Europe 600 from Switzerland, Great Britain, and Ireland the first two in their domestic currency, Ireland in euro. Planned to follow at the end of the year are shares from Austria, Denmark, Greece, Norway, Portugal and Sweden as well as Polish shares from the STOXX Eastern Europe 300 and further highly liquid securities from these seven countries. In total 1,000 shares will then be available for trading on XIM. The expansion is subject to respective national regulatory approval.
Transactions executed on Xetra International Market will be offset via Eurex Clearing and settled cost-effectively in the respective domestic markets. Clearstream forms the interface between Eurex Clearing and the domestic markets enabling Clearstream to use the settlement liquidity of these markets.
With its top market quality, competitive price model, and low set-up costs for participants, XIM will significantly strengthen Deutsche Brses competitive position on the European equities trading market. Deutsche Brse Group uses economies of scale for the new trading segment on Xetra and in the clearing house as XIM is set up on the existing infrastructure, generating hardly any additional costs in system operation. Deutsche Brse thus expects XIM to be a very sustainable business model.
D.C.