FRANKFURT, Nov 30 (Reuters) - German exchange operator Deutsche Boerse widened its reach to smaller private investors on Monday with a deal to buy multilateral trade facility (MTF) Tradegate.
Tradegate, the second largest market for private investors in Germany, offers brokers longer trading hours, alternative order types and pricing structures which are not offered at Deutsche Boerse.
According to Tradegate data, the number of transactions on its platform rose 44 percent in 2008 to 2.3 million, in stark contrast to most European equities markets. Total trade volume in 2008 was just under 10 billion euros.
Deutsche Boerse gave no details about how much it paid for a 75 percent plus one share stake but said that it was under 10 million euros ($14.93 million).
This is the third small purchase by D.Boerse in the last month after it bought index provider Stoxx ltd from Dow Jones & Co for around 200 million euros and U.S. financial news service Need to Know News for around 1 million euros.
Deutsche Boerse is also the sole bidder for a controlling stake in the state-owned Warsaw Bourse, but it said over the weekend that it would not increase its bid.
Poland's Deputy Treasury Minister Joanna Schmid said on Monday the Warsaw exchange might be floated instead.
'Through this purchase we are further advancing into the growing private investor segment,' the head of the Deutsche Boerse's cash equities operations, Frank Gerstenschlaeger, told Reuters. He said the segment is expected to grow on both the domestic and international level.
Gerstenschlaeger said the new exchange was unlikely to compete with its existing trading platforms including the newly created Xetra International Markets segment, the Xetra trading system or traditional floor trading.
(Reporting by Tyler Sitte; Editing by David Cowell) ($1=.6699 Euro) Keywords: DEUTSCHEBOERSE/TRADEGATE (Tyler Sitte@thomsonreuters.com; +49 7565 1207; Reuters Messaging: tyler.sitte.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Tradegate, the second largest market for private investors in Germany, offers brokers longer trading hours, alternative order types and pricing structures which are not offered at Deutsche Boerse.
According to Tradegate data, the number of transactions on its platform rose 44 percent in 2008 to 2.3 million, in stark contrast to most European equities markets. Total trade volume in 2008 was just under 10 billion euros.
Deutsche Boerse gave no details about how much it paid for a 75 percent plus one share stake but said that it was under 10 million euros ($14.93 million).
This is the third small purchase by D.Boerse in the last month after it bought index provider Stoxx ltd from Dow Jones & Co for around 200 million euros and U.S. financial news service Need to Know News for around 1 million euros.
Deutsche Boerse is also the sole bidder for a controlling stake in the state-owned Warsaw Bourse, but it said over the weekend that it would not increase its bid.
Poland's Deputy Treasury Minister Joanna Schmid said on Monday the Warsaw exchange might be floated instead.
'Through this purchase we are further advancing into the growing private investor segment,' the head of the Deutsche Boerse's cash equities operations, Frank Gerstenschlaeger, told Reuters. He said the segment is expected to grow on both the domestic and international level.
Gerstenschlaeger said the new exchange was unlikely to compete with its existing trading platforms including the newly created Xetra International Markets segment, the Xetra trading system or traditional floor trading.
(Reporting by Tyler Sitte; Editing by David Cowell) ($1=.6699 Euro) Keywords: DEUTSCHEBOERSE/TRADEGATE (Tyler Sitte@thomsonreuters.com; +49 7565 1207; Reuters Messaging: tyler.sitte.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
