Deutsche Börse is introducing a new pricing model for Xetra trading from 2 November which will phase out the automated trading programme discount model.

Deutsche Börse is introducing a new pricing model for Xetra trading from 2 November which will phase out the automated trading programme discount model.

In future, pricing incentives will be extended to all participants trading on the basis of the new functionalities launched with Xetra release 10.0 in June 2009, such as the 'Enhanced Transaction Solution' high-speed interface.

Transaction fees for the execution of speed-optimized (non-persistent) orders in liquid instruments, in particular, will be reduced considerably.

The new pricing model yields participants in Xetra trading an average of 13 per cent lower transaction fees on the basis of this year's volumes.

'Our new pricing model aims at all price-sensitive orders for securities tradable on Xetra. Thus, we create the basis for continued growth,' says Frank Gerstenschläger, Deutsche Börse executive board member responsible for the Xetra segment.

For clearing, the existing automated trading programme discount model will be extended to all Xetra orders, also as from 2 November 2009.

Due to the strong decrease in average order size on Xetra from EUR30,000 (Q3/2008) to currently EUR19,000, the fixed clearing transaction fee will be halved to EUR0.09 per Xetra order as from 1 July 2009. This measure will have a positive effect especially on small, fragmented orders that are frequently generated in computer-supported trading.

Transaction cost advantages to clearing customers will average 28 per cent on the basis of this year's volumes.

Due to the stimulation in trading activity as a result of the new pricing model, Deutsche Börse expects a neutral effect on total cash market revenues.