.jpg)
The Frankfurt Stock Exchange will be introducing a new segmentation structure for trading in around 14,000 bonds from 2 April onwards. The segments will differ in terms of execution time, spread and quote traffic. The Prime Bonds premium segment will guarantee maximum spreads of 5 cents, while the prices shall apply for orders of up to €250,000. The Select Bonds quality segment will offer spreads totalling 30 cents at the most for volumes of up to €100,000. Orders will be executed within a maximum of 90 seconds in both segments. The lead brokers, who register the bonds for the respective segments, decide which securities are traded in which segment.
Deutsche Börse is also introducing 11 content-based categories, such as “Emerging Markets Bonds” or “Jumbo Pfandbriefe”. This will allow the Frankfurt Stock Exchange to provide a clearer structure for investors with respect to the large range of tradable securities and differing descriptions on offer. Investors can find further information and a search function for all listed bonds at www.boerse-frankfurt.com/bonds.
“The resegmentation will provide far more transparency and will make it considerably easier for private investors to make their investment decisions”, said Jochen Thiel, Head of Product Design Retail Trading at Deutsche Börse.
At present, 14,000 bonds from domestic and foreign issuers are traded on the Frankfurt Stock Exchange. The product offering covers government and corporate bonds to currency bonds.
