Trading in actively managed mutual funds, will start on the Frankfurt Stock Exchange on Friday, Deutsche Brse has reported. Around 2,500 funds will be tradable, every trading day from 9am until 8pm, and with no front-load fee. The exchange has nominated two fund specialists, with a similar role to Lead Brokers, to assume responsibility for price determination and liquidity management. This role will be taken by DBM Deutsche Brsenmakler Gmbh and N.M. Fleischhacker AG.
With exchange trading of mutual funds we are further extending our offer for private investors, who will continue to benefit from the high quality standards that already exist for other segments, said Rainer Riess, managing director of the Frankfurt Stock Exchange.
The exchange trading of funds on the Frankfurt floor ensures transparency for investors. Buy and sell prices will be available for interested investors during the trading day from 9am to 8pm, added Michael Wilhelm, Director of N.M. Fleischhacker AG. The entry of Deutsche Brse into exchange trading of mutual funds established a valuable new sales channel for these products, offering an alternative for retail investors seeking to buy and sell funds, added Oliver Szabries, Managing Director of DBM Deutsche Brsenmakler GmbH.
Deutsche Brse has established minimum quotation levels between 20,000 and 100,000 and maximum spreads between 0.5% and 2% for trading in mutual funds, further ensuring the highest possible price quality. The two nominated Funds Specialists will ensure continuous real-time quotation of funds, offering the greatest level of transparency, liquid trading with low transaction costs.
Deutsche Brse intends to extend to mutual funds established evaluation and monitoring of quality standards currently in place for equity trading, further demonstrating their commitment to exchange trading quality.
Investors can trade in funds using their established bank, with the ease of access currently available for equity trading, and trade using established order types, such as Market Order, Limit Order and Stop Orders.