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Only one year after it opened for trading, Boerse Stuttgart’s ETF Bestx segment has successfully established itself among investors. The growth rates in ETF trading show that there are also increasing numbers of private investors investing in this segment: at a total of about EUR 3.9 billion over the first nine months of 2010, revenues were more than 50 percent higher than in the same period of 2009. And in May 2010 revenues even reached a record of EUR 670 million. Now over half of the more than 700 ETFs admitted to trading at Boerse Stuttgart are listed in the quality segment EFT Bestx.
The reasons for the success, according to Michael Görgens, Head of Investment Fund and ETF Trading at Boerse Stuttgart, are the transparency of trading and the low charges to the investor: “As regards the implicit costs – or the spread – the investor can rely on getting at least as good a deal as at our competitors.” Boerse Stuttgart benefits from working with market makers, who provide additional liquidity. The market makers undertake to provide binding buy and sell prices on a continuous basis for each product listed in the segment.
Stuttgart stock exchange has concentrated on private investors for more than a decade. “Both our trading and our comprehensive information services are tailored to the needs of private investors. Because our trading hours continue right through until 20.00 hours (CET), our investors can respond to investments in other markets,” says Michael Görgens. The introduction of ETF Bestx has further optimised Boerse Stuttgart’s service for investors, by guaranteeing the best prices and the highest levels of security in the execution of trades during normal stock exchange trading hours, between 9.00 and 20.00 hours (CET). Investors also benefit from the transparent cost structure: the variable fee in ETF Bestx is 0.1 percent of the order volume, limited to a maximum of EUR 12.18 (net).
Boerse Stuttgart is Europe's leading stock exchange for private investors. In Stuttgart investors can efficiently trade equities, derivatives, bonds, investment fund units and participation certificates at reasonable prices. Due to a hybrid market model that integrates trading experts into the electronic trading process, the Stuttgart Stock Exchange guarantees extremely flexible and cost-effective order execution. For the greatest possible transparency and a high degree of investor protection the entire trading process is monitored by an independent Trading Surveillance Office. In order to provide investors with optimum information about the products on offer, the Stuttgart Stock Exchange also offers numerous educational resources for private investors, advisers and anyone else who is interested.
