Certificate And Warrants Trading On Frankfurt Stock Exchange To Become More Attractive

Deutsche Börse plans to further enhance the quality of trading in certificates and warrants on the trading floor of the Frankfurt Stock Exchange, making this segment used especially by private investors even more attractive. The company announced the news on Tuesday. The innovations provide for higher minimum standards for trading in all securities as well as the creation of a new quality segment with special standards of transparency and efficiency. All of the new features are to be implemented in the third quarter of 2003. Deutsche Börse made the design for this segment available to the issuers of certificates and warrants. It is to be finalized with the participants in the next few weeks. At the end of April, the Exchange Council will vote on amendments to the exchange rules resulting from the planned innovations.

The new minimum standards for trading in certificates and warrants on the floor of the Frankfurt Stock Exchange comprise mistrade regulations that govern the cancellation of trades that are not carried out at fair market prices. Moreover, all exchange brokers agree to use a so-called limit-control system, which signals the immediate executability of orders in the framework of issuer quotes. In addition, minimum quote volumes and transparency standards are also being defined for the new quality segment. The pre-trade and post-trade transparency will be raised through comprehensive trading information. Every investor can see current quotes by the issuers in real time as well as historical quotes on the Internet pages of Deutsche Börse, free of charge.

Deutsche Börse drew up the improvements together with issuers and exchange brokers. Due to the joint initiative in Frankfurt, private investors will benefit from an even more transparent and efficient market for trading in certificates and warrants. Issuers can market new products on an established and independent platform. The independent exchange brokers in Frankfurt can tap new business opportunities by offering their services.