Deutsche Börse Launches Xetra XXL, Block Trading On Xetra - Xetra XXL offers First Exchange-based, Fully Electronic Block Trading Facility - Avoids Negative Price Effects And Increases Process Efficiency - Market Launch On March 2, 2001

On March 2, Deutsche Börse is launching Xetra XXL, with a new form of trading for so- called block-crossing of shares, as the company announced on Wednesday. The new functionality is designed for trading by institutional investors with large order volumes and runs on Xetra, the fully electronic trading platform. Deutsche Börse is the first European exchange to offer fully electronic, exchange-based block trading in equities. With Xetra XXL, according to Deutsche Börse, institutional investors benefit from monitored trading at market prices and a higher degree of process efficiency compared with the OTC block trading commonly practiced today, which is conducted over the phone or via Electronic Communication Networks (ECNs).

Volker Potthoff, the Deutsche Börse Executive Board member responsible for the Xetra division, emphasised the importance of the new trading form for the customer and the company: "Though Xetra XXL, we're improving the level of efficiency trading for institutional investors in block trading. At the same time, we’re making our platform more attractive for a market which, up to now, has only run through our systems to a limited extent, so we are tapping a new market for Deutsche Börse." Potthoff underscored the fact that Deutsche Börse would also tailor its services to individual groups of customers in the future.

In Xetra XXL, stocks from the DAX (blue-chip index) and MDAX (mid-cap DAX) are traded three times a day, at 10.00 a.m., 2.00 p.m. and 5.00 p.m., with a minimum order size depending on the index and the liquidity. The minimum order size for MDAX stocks is 0.5 million or 1 million euros, depending on the liquidity of the stock. In the DAX stocks, the order sizes are 3 million, 5 million and 7 million euros. Xetra XXL is based on a separate order book that exists parallel to the liquid and transparent Xetra main market. This main market determines the prices in Xetra XXL. The middle of the current bid-ask spread in Xetra in each case is the execution price in Xetra XXL. The new trading form is based on a closed order book to achieve the anonymity desired in block trading. This allows negative price effects resulting from the placement of a large order to be avoided.

Xetra XXL participants are leading domestic and foreign banks and securities trading firms. There will be 29 participants on board when the market will launch on March 2.