Deutsche Börse Group

Business newsletter

November 2017

Dear reader,

Confidence in the markets can be seen not just by our DAX index climbing to record heights but also by the continuing IPO trend. Over the last month, we have seen four IPOs in our premium Prime Standard and one in Scale, our segment for small and medium sized businesses. Indeed, Scale has become ever better established since its launch in March. The Scale All-Share index has increased by 28 percent and a Scale selection index with 30 companies will be launched in the first quarter of 2018.

Clearstream and EEX are living our strategy of cooperation and partnerships. Both have entered partnerships to increase access to trading in China. Phil Brown, our Global Head of Sales, talks on Brexit and its effects on our customers and Frank Fischer, our Chief Security Officer, gives an interview on cyber security and what measures companies can take to protect themselves against attacks.

Kind regards,

Elaine Humphries
Marketing Services

Corporate news

Brexit: time to act is now

Image

Philip Brown, Global Head of Sales at Deutsche Börse Group, speaks about what Brexit means for market participants, how prepared they are and what is causing them their biggest headaches.

“Cyber criminals have their own business case.”

Image

October was “European Cyber Security Month”. Our Chief Security Officer Frank Fischer talks about cyber attacks and how companies can protect themselves.

Deutsche Börse Group reports solid results for Q3/2017

The company generated net revenue of EUR576.3 million, an increase of 3 per cent compared to the previous year. The increase was largely driven by positive developments in the Clearstream segment, as well as by growth generated in the index business.

EEX presents sixth annual Excellence Award

At the EEX autumn reception in Brussels, Europe’s leading energy exchange honoured six academic theses in the field of energy and commodity trading.

Listing

Befesa S.A. listed on the Frankfurt Stock Exchange

Image

Befesa S.A., a leading supplier of environmentally-regulated services to the steel and aluminium industry, was listed in the Prime Standard of the Frankfurt Stock Exchange on 3 November. The IPO admitted around 34 million shares to trading. The initial listing price was EUR28.00; the issue price was EUR28.00.

Varta AG listed on the Frankfurt Stock Exchange

Image

Varta AG was listed in the Prime Standard of the Frankfurt Stock Exchange on 19 October. 8.6 million new shares were placed during the IPO. The initial listing price was EUR24.25, the issue price EUR17.50.

Voltabox AG listed on the Frankfurt Stock Exchange

Voltabox AG, a system provider for e-mobility in industrial applications, has been listed in the Prime Standard of the Frankfurt Stock Exchange since 13 0ctober. Around 22 million shares were admitted to trading. The initial listing price was EUR30.00. Deutsche Börse’s DirectPlace also provided its support in the share subscription. Shares totalling EUR15.5 million were subscribed via this new subscription functionality.

HelloFresh SE listed on the Frankfurt Stock Exchange

The listing of HelloFresh SE, a global provider of food boxes, represents yet another company from the Deutsche Börse Venture Network listing on the Frankfurt Stock Exchange's Prime Standard. The IPO on 2 November admitted around 31 million new shares to trading. The initial listing price was €10.60; the issue price was €10.25.

IPO of the Mynaric AG in Frankfurt Stock Exchange’s Scale segment

Deutsche Börse’s SME segment Scale is getting bigger: Mynaric AG, a companing working in the field of dynamic communication networks in the air and in space with new laser communication technologies, was listed in Scale at the Frankfurt Stock Exchange on 30 October. Around 500,000 new shares were placed through the IPO. The first price was €53.75, the issue price €54.00. The issue volume of the IPO was roughly €27 million.

New: Capital Market Insight

Deutsche Börse’s Capital Market Insight Newsletter gives you background information and trends from the capital market as well as the dates of major capital market events. The newsletter is sent out four times a year. Sign up now for your free copy.

Cash & derivatives market

Eurex Clearing announces partnership programme

Image

Eurex Clearing’s partnership programme benefits the broader marketplace through greater choice and competition, improved price transparency as well as reduced concentration risk. The ten most active programme participants will be eligible for a significant share in the economics of the multi-currency interest rate swap offering of Eurex Clearing on a permanent basis. In addition, these clients will be included in the governance and committee structure of Eurex Clearing AG.

Scale selection index to be launched in early 2018

Image

Deutsche Börse has drawn a positive interim balance of the Scale SME segment launched on 1 March 2017. The trading volumes of the companies that moved to Scale more than doubled year-on-year in the first seven months since the segment’s launch. The Scale All Share Index, which tracks all companies in the segment, rose by 28 per cent during this period. A Scale selection index is scheduled for a Q1 2018 launch and is expected to contain 30 companies.

EEX and CBEEX enter into strategic partnership

The European Energy Exchange (EEX) and China Beijing Environment Exchange (CBEEX) have signed a Memorandum of Understanding in order to form a strategic partnership for the joint development of the Chinese carbon market.

New ETFs launched on Xetra

Since the last newsletter, 30 new ETFs have been admitted to trading on Xetra. All new products at a glance:

Strong demand for Eurex’ factor index futures

Since their launch in May 2017, Eurex has seen its members readily embrace the six new iSTOXX Europe factor index futures. Volumes traded within the initial five months amounted to 93,245 contracts, representing EUR582m notional. The most active futures have been the Value and Momentum factors followed by: Size, Quality, Low Risk and Carry, respectively.

Trading turnovers in October

Order book turnover on Deutsche Börse cash markets totalled €115.9 billion in October, an increase of 17 per cent year-on-year. Turnover at Eurex reached 115.8m contracts, a slight increase year-on-year.

Eurex Exchange wins three awards

The GlobalCapital Derivatives Awards saw Eurex Exchange walk away with two awards: “European derivatives exchange of the year” and, even more impressively, “Global derivatives exchange of the year”. At the CTA Intelligence European Services Awards 2017, Eurex was awarded the ‘Best Exchange – Overall’ in recognition of their footprint in the European CTA investment manager community.

Market data

New market data feed provides access to all Irish Stock Exchange order book equity data

Image

The new ultrafast high-performance data feed, CEF ultra+ Irish Stock Exchange Order by Order, enables access to the entire visible Irish Stock Exchange order book and provides clients with comprehensive market data on all ISE-listed equity and ETF instruments traded.

Regulatory Reporting Hub: first reporting solution launched

Image

Deutsche Börse successfully launched the first reporting solution on its Regulatory Reporting Hub on 30 October. The EMIR reporting solution comprises all EMIR II-relevant reporting features including an interface to the trade repository REGIS-TR. With this solution, Deutsche Börse supports the Hub’s users in meeting their EMIR revised technical standards reporting obligation, which took effect on 1 November. A number of bank clients already use the new service.

A technological breakthrough

Regina Geschmayova, Client Lifecycle Management Settlement & Custody, Prague office, and Marco Popp, Project Manager Regulatory Services, speak about the technical challenges and achievements of the Regulatory Reporting Hub.

Custody & settlement

Clearstream and dwpbank enter strategic T2S-partnership

Image

The goal of the long-term cooperation is to maximise the benefits from the ECB’s pan-European settlement platform TARGET2-Securities (T2S), which aims at harmonising and simplifying the settlement of securities across Europe. Following the final T2S migration wave, Clearstream will gradually roll out its T2S solution on a market-by-market basis, starting in March 2018. Deutsche WertpapierService Bank AG (dwpbank), one of the largest providers of securities services for Germany’s financial market, will be among the first customers to benefit from this comprehensive offering.

Clearstream to launch Bond Connect service

Image

Clearstream is about to launch its service to support the cross-border bond trading and settlement scheme “Bond Connect”, linking the China Interbank Bond Market (CIBM) with the world. From 20 November, Clearstream customers will be able to access Chinese bonds traded in CIBM via Hong Kong. The new service complements Clearstream’s Stock Connect offering for China A-shares where global bank Citi acts as Clearstream’s local sub-custodian.

Clearstream’s monthly report September

In September, Clearstream held a total of EUR13,4 billion assets under custody, an increase of 2 per cent compared to September 2016. The investment funds business continues to note strong growth.

Clearstream collaboration with Pirum Systems offers clients increased collateral efficiency through real-time STP connectivity

Clearstream and the securities finance automation provider Pirum Systems are cooperating to provide mutual clients with real-time exposure visibility and an automated Triparty Required Value (RQV) solution for their securities financing activity.

Clearstream participates as advisory member at AFSF Knowledge Sharing Workshop

As part of its Asia strategy to support standardisation initiatives and operational efficiency in cross-border funds processing, Clearstream joined the AFSF Knowledge Sharing workshop 2017 in Mumbai, India. As new advisory member, Clearstream shared its experience on how to best optimise efficiency, asset safety and standardisation in the global funds industry during the workshop.

Technology

Presentations from IT Open Day 2017 now available

Image

A new attendance record was set at this year’s Deutsche Börse IT Open Day with more than 400 external and internal visitors coming to check out the latest technical trends and developments in the financial sector in general and those at Deutsche Börse in particular. The presentations are now available for download.

Training

22 - 23 November: Core Clearing Knowledge

Image

This two-day seminar will be held in London and offers a comprehensive overview of the tasks of a clearing house and its processes. It also serves as a preparation course for the Basic Module of the Clearer Test for registration as Qualified Clearing Staff (QCS).

24 November: Transaction Management Listed Derivatives

Image

The course provides basic knowledge of Eurex Exchange’s main products and explains position-keeping and maintenance of transactions in listed derivatives. With hands-on training in the Eurex Clearing C7 platform, participants become familiar with its most important functions. It will be held in London.

Quick Links