Deutsche Börse And EMETRA To Set Up B2B Internet Metal Derivatives Platform - Goal Is To Become The Leading Market Place For Non Ferrous Metals - Deutsche Börse To Expand Its E-Commerce Activities - Deutsche Börse And The Derivatives Arm Of London Based M

EMETRA today announced that they will cooperate to set up a B2B internet platform to trade non-ferrous metal derivatives. The two partners said on Thursday that they have signed a letter of intent on this matter.

Under the terms of the agreement Deutsche Börse will take a significant equity stake in EMETRA's derivatives trading business. In return Deutsche Börse will contribute the trading platform to the business as well as its market design know how to complement EMETRA's existing expertise. The new derivatives market is scheduled to go live by the end of January 2001. It will form part of a worldwide integrated non-ferrous metal market place whose physical platform will be provided by Breakaway Solutions/Right Works. EMETRA's physical platform is expected to go on-line by the end of July 2000 offering a full range of non-ferrous metals physical products and related services.

Peter Sellars, CEO of EMETRA, said: "We are delighted to announce this partnership with such a prestigious entity as Deutsche Börse. The market know-how that Deutsche Börse brings will be invaluable in developing our derivatives platform. EMETRA's physical platform is on schedule to go live next month and this partnership ensures that EMETRA will remain at the forefront of the e-commerce non-ferrous metals market."

EMETRA was founded as a joint venture between leading non-ferrous metal trading company MG plc, Internet Capital Group and Safeguard International Fund, L.P. in February 2000. Its goal is to become the leading marketplace for spot and derivatives trading of non-ferrous metals.

Werner Seifert, CEO of Deutsche Börse said: " EMETRA is an excellent opportunity to leverage our existing e-business and market organization capabilities to a new market. This is the second step in our strategy to explore new e-commerce businesses following the project of the European Energy Exchange which will go live in August this year." Some months ago the company had presented its vision to explore electronic market places beyond its existing business in securities trading. All of Deutsche Börse's e-commerce activities including the equity investment in EMETRA will be part of iX-international exchanges once the merger of Deutsche Börse and London Stock Exchange is completed.