Eurex Clearing, the clearing operation of the Deutsche Börse Group, is to introduce a 50% reduction in its fixed clearing fee and expand the discount models for Xetra cash market transactions from 1 December 2010.
The exchange group says that, on average, Frankfurt Stock Exchange participants should see around 11% lower total clearing costs based on Q3 2010 volumes, while clearing fees for transactions on the Irish Stock Exchange will also be reduced by 40%.
“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 executive board member responsible for the Xetra cash market segment.
Specifically, the fixed transaction fee for Xetra transactions is to be cut by 50%, from €0.06 to €0.03. Additionally, existing discounts are to be increased by as much as 100%, which will mean fixed transaction fees can be as low as zero. The variable transaction fee for Xetra executions will be reduced by up to 50% via a new discount model. At the same time, the fee for delivering net positions after offsetting will be raised from €0.40 to €0.60 to cover the corresponding settlement cost.
Due to the stimulation in trading and clearing activity as a result of the new pricing model, Deutsche Börse says that it expects a largely neutral effect on total turnover it receives from the Xetra segment.