Deutsche Borse-owned Frankfurt Stock Exchange today hosted trading in units of the First Private Aktien Global fund issued by fund manager First Private.
The German stock exchange says it is the first fund to offer investors the additional option of subscribing via the stock exchange.
The units were issued at a price of €50 each, and were first quoted on the floor at €50.10. During the two-week subscription period that preceded the start of trading, the issuer had to keep pace with high demand for the securities: around 40 percent of the units issued were subscribed to via the Frankfurt Stock Exchange.
Fund subscription allows investors to purchase units at the issue price and subject to no front-end load, irrespective of the bank with which their securities accounts are held, says Deutsche Borse, who believes the service will allow it to expand its mutual fund service offering.
Deutsche Borse says is currently holding talks with other investment companies interested in using this option to place new funds on the market. Exchange trading provides fund issuers with an additional distribution channel.
Deutsche Borse 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 a.m. and 8 p.m. on trading days.
Deutsche Borse believes that, by systematically expanding its offering for private investors in recent years, it has established itself as the reference market.