Deutsche Brse is to acquire a 75% holding of Tradegate Exchange, with effect from 8 January 2010. Tradegate Exchange operates the MTF Tradegate, which has been running since 2001. At the beginning of 2010 it will commence operation as a stock exchange.
Deutsche Brse will also acquire a 5% share in Tradegate AG Wertpapierhandelsbank, one of the market makers in the future Tradegate Exchange. Deutsche Brse will also have the option of gradually increasing its share in Tradegate to a maximum of 20%.
The amount invested is reported to be in the single-figure million euro range.
The transition of the successful MTF Tradegate into a regulated trading venue as Tradegate Exchange is an opportunity for Deutsche Brse to employ its core competency and to operate an additional stock exchange in Germany. Our common objective is to expand retail business across Europe, said Frank Gerstenschlger, member of the Executive Board of Deutsche Brse AG and responsible for the Xetra business area.
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 Brses renown and strength in terms of distribution, said Holger Timm, CEO of Tradegate AG.