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The Frankfurt Stock Exchange is offering trading in 25 selected funds with a substantially reduced spread until 20 June to mark one year of mutual fund trading: the spreads guaranteed by the specialists have been reduced by as much as 90 percent; three funds are even being traded without a spread. This means that investors can buy or sell the funds at a lower cost. The selected funds cover almost all asset classes from equities and bonds to real estate. Investors can find more detailed information at www.boerse-frankfurt.com/hotspreads.
The Frankfurt Stock Exchange launched exchange trading in actively managed mutual funds on 19 May 2006. The trading volume and the number of products listed have steadily increased. Around 2,900 funds can now be traded in real time and subject to no front-end load on all trading days from 9 a.m. until 8 p.m. “This comprehensive offer gives private investors, in particular, a genuine alternative to traditional fund purchase,” said Rainer Riess, Deputy Managing Director of the Frankfurt Stock Exchange. For mutual fund trading, Deutsche Börse has defined product-based minimum quotation volumes ranging from €20,000 to €100,000, as well as maximum spreads from 0.5 to 2.0 percent, guaranteeing top price quality.
For investors, exchange-based fund trading is just as easy as equities trading via their local bank – all major order types (e.g. market, limit and stop orders) are available. Unlike its competitors in the exchange-based fund trading business, the Frankfurt Stock Exchange offers free real-time trading data. The stock exchange already has a share of more than 30 percent in the exchange-based fund trading segment after one year.
