Eurex Clearing revises clearing price model 16 November 2010Frankfurt Reporter: Steven Lafferty
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Eurex Clearing, Europe’s largest clearing house, announced that it
will
introduce a revised clearing price model for cash market transactions
effective
1 December 2010. The transaction fees will be noticeably reduced compared
to
the current price model. This is the result of a 50% reduction in the fixed clearing fee and an expansion of the discount models for Xetra
transactions. On
average, Frankfurt Stock Exchange (FWB) participants will benefit from
around
11 percent lower total clearing costs based on Q3/2010 volumes. Moreover,
clearing fees for transactions on the Irish Stock Exchange will also be
reduced
by 40 percent.
„With the new pricing model, we are positioning ourselves for further
growth in
the European cash equity clearing business and are stimulating trading on
the
cash markets cleared by Eurex Clearing,” said Frank Gerstenschläger,
Deutsche
Börse AG Executive Board member responsible for the Xetra cash market
segment.
Specifically, the fixed transaction fee for Xetra transactions is to be cut
by
50 percent, from 0.06 to 0.03 euro cent. Additionally, existing discounts
are
to be increased by as much as 100 percent, thus the fixed transaction fee
can
be as low as 0 cent. The variable transaction fee for Xetra transactions
will
be reduced by up to 50 percent via a new discount model. At the same time,
the
fee for delivering net positions after offsetting (delivery management fee)
will be raised from € 0.40 to € 0.60 to cover the corresponding settlement
cost, although this fee remains significantly lower than that of other
clearing
houses.
Due to the stimulation in trading and clearing activity as a result of the
new
pricing model, Deutsche Börse expects a largely neutral effect on total
turnover from the Xetra segment.
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