Eurex CEO Franke: Definite Synergies With Joint Exchange-Eurex Became World's Largest Derivatives Exchange Within Just One Year's Time

Through the merger of DTB and SOFFEX, the newly created European derivatives exchange, Eurex, has achieved synergies that go far beyond the extremely strong increase in turnover. This is how Eurex CEO Jörg Franke summed up the exchange's performance in Frankfurt on Wednesday evening at a press conference marking the first anniversary of Eurex. Eurex initiated trading as the joint derivatives market of DBAG and SWX on September 28, 1998. Franke pointed out that proceeds as a result of the exchange merger would be about 80 million euros (present value) higher than if the exchanges had been operated separately. The reason for this, Franke said, is that a joint market is much more attractive for potential participants. Costs have also decreased as a result of the merger, especially in information technology operations, by a total of 70 million euros. The Eurex CEO also emphasized that the merger had obviously enhanced the exchanges' strategic positioning. Franke is expecting further consolidation to take place in the international exchange landscape. For one thing, he said, Eurex has met with good results, for another the market participants want a European-if not worldwide-standard for exchange trading systems. Eurex is on the right track with its alliance strategy to meet the market requirements, he added. The Eurex goal is to give market participants low-cost and simple access to as many liquid markets as possible. Eurex has been active since September 28, 1998; since that time, it has been possible for German and Swiss products to be traded and settled on a single electronic trading and clearing platform. Within just one year, the existing exchanges have also been merged completely in real market practice. In the meantime, Eurex not only has the world's highest trading volume but also the most widespread membership geographically, which in turn also means the highest level of acceptance worldwide: About 400 participants from 16 countries are currently trading on Eurex directly, another 50 U.S. participants are about to hook up to the Eurex system.