Deutsche Börse Supports Demands Of Giovannini Group. Dismantling Barriers Increases Efficiency Of Cross-Border Trading/ Opening Up The Settlement Systems Will Open Up New Business Potential

Deutsche Börse has expressed its support for the overall assessment and measures proposed in the Giovannini Report on clearing and settlement. The company shares the experts' view that in order to raise the level of efficiency in clearing and settlement in the EU, regulatory barriers have to be dismantled and uniform standards developed. Based on calculations presented in a white paper published by Deutsche Börse in April 2002, some 40 percent of the inefficiencies in cross-border equities trading are attributable to the differences in the framework conditions. According to these calculations, another 40 percent cannot be influenced at all because they result from different languages within the EU, for example, or from the lack of economies of scale. This calculation indicates that only some 20 percent of the inefficiencies can be influenced by trading participants, exchanges and clearing organizations.

Deutsche Börse contributed to the report and supports the Giovannini Group's call for the settlement systems to be opened up. Clearstream will continue to be the preferred settlement location for German securities due to its superior offerings, the exchange operator said. Deutsche Börse regards opening up the settlement systems Europe-wide to allow mutual access as additional business potential in clearing and settlement and is committed to work with other infrastructure providers to further increase the efficiency of cross border settlement. Clearstream currently maintains 39 direct or indirect links to settlement organizations worldwide - more than any other provider.

Deutsche Börse also shares the Giovannini Group's view that for the function performed by a Central Counterparty the model of user choice does not have to be applied.

Further information from the Gruppe Deutsche Boerse is available under http://www.media-relations.deutsche-boerse.com.