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Deutsche Börse will introduce a new fee model for floor trading in equities and fixed-income securities on the Frankfurt Stock Exchange, as well as for transaction clearing, on 1 November 2007. Under the new pricing model, the majority of orders will be executed at a lower cost than in the past, with the trading fee dropping to as low as €1 depending on the size of the order. This will allow the Frankfurt Stock Exchange to strengthen its position as the most attractive trading venue for private investors. Moreover, the fees will be more transparent and can be calculated exactly as early on as when an order is placed. This means that the new model meets the transparency requirement set out in the EU’s MiFID Directive.
In the future, trading and clearing fees for floor trading transactions will be calculated per order executed and on the basis of the order value. The contract note fee of €1.75, which is charged for every partial execution irrespective of the order size, will be abolished. Under the new model, the fee charged for the execution of an equities order in floor trading will be 0.038 percent of the order value, with a minimum fee of €1 and a maximum of €19. To execute a bond order, the stock exchange will charge a fee of 0.01 percent of the order value, with a minimum fee of €1 and a maximum of €10. The structure of the new model was developed in close consultation with market participants and is based on the transparent and proven fee model of the electronic trading platform Xetra. At the same time, the clearing fees will be changed over to the model that already applies for Xetra transactions.
With a share of approximately 60 percent of the order book volume in equities in floor trading and 91 percent of equities trading on Xetra, the Frankfurt Stock Exchange is by far Germany’s leading marketplace. The Frankfurt Stock Exchange offers the best execution of client orders in more than 250,000 securities in floor trading, with high liquidity, immediate order execution and low transaction costs.
