The two partners will establish a joint venture company, EuroXT, to operate as a European broker-dealer in accordance with the European regulations. EuroXT will be incorporated in Germany. Deutsche Börse will own a majority and MarketXT will be a significant minority share investor.
EuroXT will provide connectivity to market information and execution for European stocks to MarketXT's US customers. EuroXT will also become a participant of the Xetra trading system and other major European markets. Orders for European stocks from investors using MarketXT will be routed to EuroXT and executed on the Xetra trading system or other European execution mechanisms and markets. Clearing and settlement for trades on the Xetra system will be handled by Clearstream International, a joint subsidiary of Deutsche Börse and Cedel International.
Volker Potthoff, member of the executive Board of Deutsche Börse said: "The joint venture between MarketXT and Deutsche Börse is a symbiotic relationship between an ECN and a traditional electronic exchange. We plan to attract new customers through offering a wider range of products and thus, generate greater order flows." "EuroXT is positioned to open a range of possibilities and opportunities for both Deutsche Börse and MarketXT," he added.
"MarketXT has taken a leadership role in fostering change and innovation in the US capital markets, initially by providing the first extended hours ECN designed for individual investors, and now by expanding into the global capital markets with access to European stocks." said Michael O. Sanderson, Chairman and Chief Executive Officer of MarketXT, Inc. "Deutsche Börse is the leading innovator for electronic marketplaces in Europe and we are highly enthusiastic about partnering together to launch this new connectivity between the United States and Europe."
"The linkages between the Deutsche Börse and MarketXT, Inc. represent another step in the globalization of the capital markets," said Steven Silberstein, President and Chief Operating Officer of MarketXT, Inc. "This partnership is an outstanding demonstration of the flexibility and functionality of the trading technologies of the two partners."
MarketXT is in the process of completing its merger with TRADESCAPE.com™ Inc. and together has plans to create a revolutionary network that will enhance market access for retail customers, as well as active investors using theTRADESCAPE.com systems to execute trades. This merger will also create a robust platform that can extend the direct access trading model with Smart Order Routing Technology™ to institutional investors.
Deutsche Börse Group is a fully integrated exchange organization offering a broad range of trading, clearing, settlement, custody, information and infrastructure services. Deutsche Börse AG is the operating company of the Frankfurter Wertpapierbörse (Frankfurt Stock Exchange, "FWB") and - together with SWX Swiss Exchanges - of the world's largest derivatives exchange Eurex. Deutsche Börse operates the Xetra electronic trading system under the FWB, which is the dominant market place for trading German, Austrian and starting in the second quarter of this year, Irish stocks. Deutsche Börse also functions as the holding company of Deutsche Börse Systems AG and various other subsidiaries. Major holdings include a 50 per cent interest in Clearstream International, an international clearing and securities depository.
For more information visit the Deutsche Börse Web site at www.exchange.de.
MarketXT, Inc., member NASD and SIPC, is based in New York and privately held. MarketXT, Inc. has served as a leader in fostering convenience and opportunities for investors. The company's electronic communications network (ECN) is the first extended-hours trading platform specifically designed for individual investors, offering tools and services that were previously available only to institutions. MarketXT is supported by major brokerage firms. Its investors include Salomon Smith Barney, Morgan Stanley Dean Witter & Co., Herzog Heine Geduld, Bernard L. Madoff Investment Securities and E.M. Warburg Pincus & Co.
For more information, visit the MarketXT Web site at www.marketxt.com.
In February 2000, MarketXT, Inc. entered into a definitive agreement to be acquired by TRADESCAPE.com, Inc.. The new organization represents a powerful combination of high-speed, low-cost, direct access trading systems integrated with the platform of a fast-growing ECN.
TRADESCAPE.com is a global e-liquidity portal that seamlessly connects and empowers buyers and sellers in various electronic marketplaces. Headquartered in New York, TRADESCAPE.com is one of the leading providers of direct access intelligent order routing technologies for professional traders, institutions and active online investors. The largest investor in TRADESCAPE.com is SOFTBANK Finance , a subsidiary of SOFTBANK, a Japanese Internet pioneer.
