Deutsche Borse To Offer Mutual Fund Subscription

Investors will soon be able to subscribe to mutual funds at Deutsche Brse for the first time. This will give them a guaranteed opportunity to purchase the investment units at the issue price irrespective of the bank with which their

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Investors will soon be able to subscribe to mutual funds at Deutsche Brse for the first time. This will give them a guaranteed opportunity to purchase the investment units at the issue price irrespective of the bank with which their securities accounts are held.

The move will allow Deutsche Brse to further expand its mutual fund service offering. The Frankfurt-based stock exchange operator has been providing investors with the opportunity to subscribe to certificates before issue for around two years now.

As is the case with equity issues, investors will be given a period of several days during which they can subscribe to the fund units. The minimum order size stands at one unit, with allotment based on the price determined by the issuer in advance. Investors will subscribe in the same manner as they would place a buy order and must, in particular, ensure that the order is valid until the last day of the subscription period and specifies “Frankfurt” as the trading venue.

Asset management company First Private will be the first fund issuer and will be offering an international equity fund for subscription via the Frankfurt Stock Exchange. The subscription period will end on 1 December.

Deutsche Brse launched trading in mutual funds on 19 May of this year. Around 3,100 funds are traded on the Open Market of the Frankfurt Stock Exchange between 9 am and 8 pm on trading days. Deutsche Brse has systematically expanded its offering for private investors in recent years and established itself as the reference market.

In addition to the fund offering, the Frankfurt Stock Exchange provides a broad product range for private investors: 7,000 German and international equities, over 50,000 certificates and reverse convertibles, more than 60,000 warrants and 8,600 German and foreign government and corporate bonds.

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