NASDAQ Deutschland is based on four important elements from which German private investors, market makers, banks and institutional investors benefit:
- A best execution model which provides German retail investors with more competitive pricing and improved liquidity for both German and international stocks
- A transparent market model that is based on the competition of market makers in combination with the advantages of an open order book
- An attractive platform for listing growth companies across all sectors
- The exchange will be marketed under the NASDAQ brand, which represents transparency, quality and innovation.
The Supervisory Board appointed Mario Furlan (Frankfurt), Ann Neidenbach (London), Dr. Jörg Walter (Berlin) and Jim Weber (London) to the Management Board. The new members will join current Management Board member Axel Schubert (Bremen). Jim Weber was appointed chairman, Axel Schubert vice chairman.
The company's forecast for 2003 only takes into account order flow from the shareholder banks and reflects the current market environment. However, more than 30 other banks throughout Germany and Austria are participating in connectivity tests. These include most of the major order flow providers and all the settlement banks, which, in turn, have numerous banks from the public banking sector as their clients. All institutions are currently registered traders on the Berlin and Bremen Stock Exchanges. The Company sees the participation of this large number of highly regarded financial institutions as a clear recognition of its capabilities and prospects and it is greatly encouraged by the potential for additional order flow from the non-shareholding members.
NASDAQ Deutschland has signed market maker agreements with Commerzbank, Dresdner Bank and Berliner Effektengesellschaft and the company is confident that it will continue to attract other national and foreign market makers.
Stock prices in all market sectors will be established through NASDAQ Deutschland's electronic trading platform, SuperMontage Europe. This is as set out in the stock exchange rules and regulations, which are currently being approved and will take effect in time for the launch on March 21, 2003.
Initially, stocks from the DAX, MDAX, TecDAX, NASDAQ 100 and Dow Jones 30 will be traded. There will be an open order book for each security, in which at least one market maker will provide permanently tradable quotes for all.participants. In addition, order flow providers will be able to conclude bilateral agreements with market makers for the execution of their securities orders, enabling them to negotiate improvements to the execution price. Greater transparency and more competitive pricing is achieved, which ensures that the customer can trade at the better of either the best bid or offer price on NASDAQ Deutschland or the best price available on the designated reference market for that security.
Jim Weber, NASDAQ Deutschland, commented, "The make-up of the Supervisory and Management Boards reflects a high degree of national and international expertise. The market model gives banks and private investors a tailor-made trading vehicle that offers efficiency, transparency and competitive prices."
NASDAQ Deutschland
The establishment of NASDAQ Deutschland AG through the recapitalisation of the Bremer Wertpapierbörse AG (Bremen Stock Exchange) was completed with the entry of the new company into the Bremen Commercial Register on January 21,2003. The founding shareholders are Commerzbank AG, comdirect bank AG, Dresdner Bank AG, Berliner Börse AG and NASDAQ Europe.
NASDAQ Deutschland AG was founded in combination with the merger of the Berlin and Bremen Stock Exchanges, which will be finalised in March 2003. NASDAQ Deutschland AG will operate its electronic trading system - SuperMontage Europe - under the auspices of the newly merged exchange. The clearing activities of the current Berlin and Bremen Stock Exchanges will continue as usual.
NASDAQ Deutschland will commence operation on 21st March 2003, offering an efficient, high quality execution platform for German retail order flow and an alternative listing platform for German and international issuers. Market participants will benefit from an open architecture market model, NASDAQ.SuperMontage Europe, which will provide with more competitive pricing and improved liquidity for both German and international stocks. Investors will have access to a wide range of international securities drawn from the DAX, TecDAX, MDAX, NASDAQ 100 and Dow 30. For further information on NASDAQ Deutschland, please visit www.NASDAQdeutschland.de
