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Premiere at Boerse Stuttgart: For the first time ever, retail investors are no longer restricted to the specified minimum denomination or a multiple thereof when trading bonds. At Boerse Stuttgart, orders can now be adjusted in a series of increments. An increment is the amount by which an investment sum can be increased on the basis of the minimum denomination specified whenever a bond is issued. For example, an investor can now purchase EUR 12,000 of a bond that has been issued with a minimum denomination of EUR 10,000 and an increment of EUR 1,000. Previously, investors could only trade in multiples of the minimum denomination – in this case in EUR 10,000 steps. It is still not possible, however, to trade bonds below the minimum denomination.
In principle, all the bonds listed at Boerse Stuttgart can be bought and sold in this way with immediate effect. ‘This arrangement gives bond investors greater flexibility, as they can now trade at a level that suits their requirements,’ explains Michael Görgens, Head of Bond Trading at Boerse Stuttgart. Investors should contact their bank or online broker if they have any questions. The specified increment (‘smallest tradeable unit’) for each bond is shown in that bond’s master data on Boerse Stuttgart’s website.
As a market standard, incremental trading is already well-established in the institutional interbank market for bonds. ‘Once again, we are taking steps to give retail investors the same opportunities as institutional market participants,’ says Michael Görgens.
With its hybrid market model, Boerse Stuttgart – the market leader in Germany in exchange-traded corporate bonds and debt instruments from emerging economies – provides top price and execution quality in more than 16,500 tradeable bonds.
