Deutsche Borse is set to acquire a 75% holding plus one share in Tradegate Exchange GmbH, Berlin, with effect from 8 January 2010. Tradegate Exchange operates the off-exchange trading platform (MTF) TRADEGATE. At the beginning of 2010 it will commence operation as a stock exchange. The former MTF TRADEGATE will receive the status of “regulated market within the meaning of MiFID”, becoming Tradegate Exchange.
Deutsche Borse AG said it would also acquire a 5% share in Tradegate AG Wertpapierhandelsbank, one of the market makers in TRADEGATE/the future Tradegate Exchange. Deutsche Borse will also have the option of gradually increasing its share in Tradegate AG to a maximum of 20%.
Deutsche Borse is investing an amount in the single-figure million euro range for its share in Tradegate Exchange GmbH and the initial 5% holding in Tradegate AG. Deutsche Borse’s majority interest in Tradegate Exchange GmbH will serve to expand its trading offering for private investors and strengthen its position in the European retail market.
With the Tradegate Exchange, it will be operating a platform which offers particularly online brokers new trading functions, longer trading hours and new order types at attractive prices.
Frank Gerstenschläger, member of the executive board of Deutsche Borse AG, said: “The transition of the successful MTF TRADEGATE into a regulated trading venue as Tradegate Exchange is an opportunity for Deutsche Borse to employ its core competency and to operate an additional stock exchange in Germany. Our common objective is to expand retail business across Europe.”
Holger Timm, CEO of Tradegate AG, said: “The market share of the MTF TRADEGATE has grown continuously and significantly in recent years. This shows that our strategy to develop a trading platform in tune with the needs of private investors has borne fruit. We are pursuing further growth of the platform into the rest of Europe with Deutsche Borse’s renown and strength in terms of distribution.”
