Deutsche Börse has announced that it 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 around €1 depending on the size of the order.
The fees will be more transparent to meet the transparency requirement set out in the EU's MiFID directive, says Deutsche Börse.
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.
For the execution of 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 fee model of the electronic trading platform Xetra, says the exchange operator.