Deutsche Börse Group

Business newsletter

March 2018

Dear reader,

Europe has been pretty much a frozen zone over the last weeks with temperatures well below normal for this time of the year. Despite shivering on the way to work, the cold weather has had no impact on our activities, as our newsletter shows. Despite the market turbulences, the IPO season has got off to a good start with three companies listing on the exchange, including one in Scale, our segment for small and medium-sized enterprises. Scale has also just celebrated its first birthday and can show some remarkable successes – even more reason for us to launch the Scale 30 index. Numerous ETFs have also been issued since the last newsletter; our ETF facts and figures for last year gives a good overview. Cryptocurrencies, the phasing out of central bank quantative easing and the return of market stress are further topics. Happy reading and hope that the temperatures are warming up where you are.

Kind regards,

Elaine Humphries
Content Marketing & Editorial Services

Corporate news

Cryptocurrencies: hype or the future?

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Stefan Teis, Senior Vice President, Group Business & Product Development, Deutsche Börse, looks into how cryptocurrencies could be leveraged at Deutsche Börse Group. 

Eurex Clearing successfully passes EU-wide stress test

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ESMA put the focus of the test on credit risk as well as associated liquidity risk that EU CCPs would face under different stressed market environments. Eurex Clearing passed the test in both categories.

Deutsche Börse AG posts solid earnings growth for the 2017 financial year

Net revenue 2017 was up 3 per cent, to €2,462 million, adjusted operating costs declined by 1 per cent and adjusted EBITDA and net income were up six per cent. Adjusted earnings per share are €4.59 and there is a 4 per cent proposed dividend increase to €2.45 per share. For 2018 structural net revenue growth of at least 5 per cent and net income growth of at least 10 per cent is expected.

Annual press briefing

On 21 February, Deutsche Börse held its annual press briefing after publication of its preliminary figures for 2017. The recording of the conference is now available.

LuxCSD receives accreditation for issuance of Legal Entity Identifiers

The accreditation as an official Local Operating Unit underlines the suitability of LuxCSD to operate as an issuer within the global Legal Entity Identifiers (LEI) system. The use of LEIs ultimately aims at bolstering the safety of the financial system and the demand for LEIs plays a growing role in light of supranational regulations such as MiFID II, MiFIR and CSDR.

Listing

First IPO of the year: Dermapharm listed on the Frankfurt Stock Exchange

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Shares in the family-owned pharmaceutical company based in Grünwald near Munich opened at €28.00, following an issue price of €28.00. Total issue volume stood at 377 million.

Instone Real Estate Group N.V. listed on Frankfurt Stock Exchange

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After completing a private placement of seven million new shares, Instone Real Estate Group B.V. was listed in the Prime Standard of the Frankfurt Stock Exchange on 15 February. The Essen-based residential property developer's shares opened trading at €21.50, following an issue price of €21.50.

First Scale IPO of 2018: STEMMER IMAGING AG

On 27 February, the European machine vision technology provider for scientific and industrial uses became the first company to launch an IPO in the SME segment Scale of the Frankfurt Stock Exchange this year. The STEMMER IMAGING shares opened trading at €36.00, following an issue price of €34.00.

SME segment Scale celebrates first anniversary

Deutsche Börse draws a positive interim balance of its SME segment Scale, which was launched on 1 March 2017. The number of shares listed in Scale has since risen to 49, with five of these companies joining the segment via an IPO. Liquidity in the companies listed in Scale has risen on average by 130 percent.

Cash & derivatives market

Facts and figures for ETF trading

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Our factsheet for 2017 is now online and provides an overview of last year’s developments.

EEX, innogy and Süwag launch enermarket B2B portal for online price comparisons

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Via the enermarket B2B platform, business customers can quickly and easily find the right power and gas supplier through an independent comparison of offers and, as a result, cut their energy costs in the long run.

New ETFs launched on Xetra

Since the last newsletter, 24 new ETFs have been admitted to trading on Xetra. All new products at a glance.

Trading turnover in February

At €158.5 billion, Deutsche Börse cash markets achieved the highest February turnover since 2008 and an increase of 45 per cent year-on-year.

Market data

Deutsche Börse launches Scale 30 Index

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The selection index tracks the performance of the 30 most liquid companies listed in the SME segment Scale. Eligibility for index inclusion depends on order book turnover on Xetra and Börse Frankfurt.

How smart is your data?

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Data volume isn’t everything. Hartmut Graf, Head of Data Services, Deutsche Börse Group, explains what it takes to turn raw data into valuable data.

Low-volatility stocks and the return of market stress

The violent market pullbacks that many traders had become accustomed to living without are back. The latest STOXX Pulse Online article looks at the performance of a portfolio of equities constructed with the aim of fending off volatility better than a market-capitalisation portfolio.

Changes to DAX, MDAX, SDAX and TecDAX

The shares of Covestro AG will replace ProSiebenSat.1 Media SE in the DAX index. The latter will move to MDAX. In MDAX Aroundtown S.A. will replace Steinhoff International N.V. and Rocket Internet SE will replace Südzucker AG. These and changes to SDAX and TecDAX will be effective as of 19 March.

Custody & settlement

“Ready for monetary policy’s return to normal”

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Clearstream’s Philippe Seyll speaks about the phasing out of central bank quantitative easing, its effect on collateral availability and other market trends.

Clearstream’s monthly report: January

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In January, Clearstream held a total of €13,660 trillion assets under custody, an increase of 2 per cent compared to January 2017. 

Clearstream to launch link to Kazakhstan

The link with the Kazakh market is expected to be launched by the end of the first half of 2018. The implementation will allow settlement of eligible government securities issued under the Kazakh legislation in Tenge through the international clearing system of Clearstream and will expand the access of foreign investors to the Kazakh stock market.

CSDR covers the entire post-trading/post-clearing sphere

Philip Brown, Co-CEO of Clearstream Banking S.A., gives his view on the implications of the new Central Securities Depositories Regulation CSDR, the further development of the European Capital Markets Union as well as the use of new technologies.

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