| Trading subscription rights at FWB Since March 2005, subscription rights have been continuously tradable on the Frankfurt trading floor. Thus, Deutsche Börse provides its market participants with two platforms for trading in subscription rights: the leading fully electronic trading system Xetra and floor trading. In Xetra, trading is supported by a so-called Designated Sponsor, who will enter binding buy and sell prices during the entire Xetra trading period, thus enabling continuous trading of subscription rights on Xetra. Trading subscription rights via the open Xetra order book thus becomes more liquid, transparent and international. With the introduction of subscription rights on Xetra, all of the around 300 Xetra participants from 18 countries can participate in the trading of subscription rights – this also includes foreign banks and financial service providers who have no direct access to the trading floor of FWB Frankfurter Wertpapierbörse (the Frankfurt Stock Exchange). This results in a new business opportunity for the growing number of international Xetra participants without admission to the trading floor: subscription rights can be traded via Xetra without a detour, which saves both time and costs. Furthermore, the liquid trading of subscription rights provides Xetra users with new business opportunities related to the underlying share and the respective Eurex products. Order sizes A minimum order size will be introduced for the trading of subscription rights on Xetra: that’s 1,000 shares for subscription rights at a value of €1 or above and 5,000 shares for subscription rights with a value of less than €1. Each order size above the minimum is permitted. In the case of Iceberg orders the individual peak size must meet the minimum order size. Smaller orders are rejected by the Xetra system. As a rule, all subscription rights for underlyings that are traded continuously on Xetra can be included in Xetra trading. The issuer and/or lead manager must apply for inclusion of the security in continuous trading on Xetra at the Market Supervision (Quotation) department of Deutsche Börse. It is also required to provide proof that the security is supported by at least one Designated Sponsor. Trading model For the trading of subscription rights, a combination of existing Xetra functions will be used. All order types and order restrictions of Xetra trading also apply for subscriptions on all trading days.
From the first to the penultimate trading day, subscription rights are offered in continuous trading. The first trading day starts off with an IPO auction, which is conducted at the same time as the auction on the trading floor. After the first price fixing, the regular intra-day auction is started in order to secure an uncrossed order book for the subsequent continuous trading. Afterwards, the trading process corresponds with that of the underlying stock. From the second to the penultimate trading day, the trading process corresponds with the trading schedule of the underlying, with exception of the opening auction, which takes place a couple of minutes after the stock’s auction. At the end of the penultimate trading day, all existing open orders are deleted and, if required, must be entered anew on the last trading day. On this last trading day, only one auction takes place on Xetra – again, at the same time as the auction on the trading floor. Detailed information on the trading model for subscription rights on Xetra is contained in the Xetra Market Model Stocks Release 7.1. Favorable prices For the trading of subscription rights on Xetra, the same low fees apply as for order execution in the underlying stock. | 
