The Deutsche Brse Group has reorganised itself. From 1 January, its management will be organised on functional lines: with “building” and “operating” trading, clearing and settlement systems kept distinct from “loading” the systems with transactions. At the same time, the new structure will complete the full integration of Clearstream into the Deutsche Brse Group.
The goal of the new structure, says Deutsche Brse, is to make better use of the vertical integration of the group. It means that the Xetra and Eurex divisions, together with the related clearing services, will be managed in a single business unit – Trading and Clearing Services – as part of the Customers/Markets division. This, says the German exchange, reflects the growing convergence of cash and derivatives markets and the burgeoning need for hybrid products to cover both markets. The other units in the Customers/Markets division will be Banking/Custody, Information Services and Technology Services. Which means that Customers/Markets will incorporate all client interfaces, improving prospects for cross-selling.
Operations will be divided into Settlement/Custody, Trading/Clearing/Information as well as Group Functionality, and will focus on systems development, efficiency gains and lowering unit costs.
Technology/Systems is subdivided into Central Support and Delivery as well as Application Development Clearing & Settlement/Custody and Application Development Trading/Consulting; this is where the central development lies for all trading, clearing and settlement systems that are used by the Deutsche Brse Group.
A team consisting of 14 Managing Directors will manage the Group in a committee-based structure with Management Committees, Group Committees and an Executive Committee. The Management Committees are tied to the core functions. The Chief Executive Officer (CEO) is the head of the Customers/Markets Committee; the Chief Operations Officer (COO) will head the Operations Committee; and the Chief Information Officer (CIO) the Technology/Systems Committee. The Group Committees are set up across the core functions: Product Development with the COO as chairman; Risk Management and Compliance headed by the CEO; and Investment as well as Compensation and Policy chaired by the Chief Financial Officer (CFO).
Frank Gerstenschlger, Christoph Lammersdorf and Volker Potthoff will take over responsibility as Managing Directors and report directly to Werner Seifert or respectively Andr Roelants. Frank Gerstenschlger will continue to be the Chief Executive Officer of entry AG; Christoph Lammersdorf will continue to head Information Services. Volker Potthoff will take over the new business unit Banking and Custody Services at Clearstream.
The Executive Committee will include six of the 14 Managing Directors: Werner Seifert (CEO), Rudolf Ferscha (Head of Trading and Clearing Services), Atthias Ganz (COO), Mathias Hlubek (CFO), Michael uhn (CIO) and Andr Roelants (Head of Banking and Custody Services). In terms of German stock-corporation law, this Executive Committee corresponds to the Executive Board of Deutsche Brse AG with Werner Seifert as Chief Executive Officer and Andr Roelants as deputy CEO.
Under the new structure, the Group companies Deutsche Brse AG, Clearstream International S.A., Deutsche Brse Systems AG, entory AG and Eurex will continue to exist. The new management structure will not result in the loss of any jobs.