Deutsche Börse News
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The shares of Gateway Real Estate AG (ISIN: DE000A0JJTG7) are listed in the Prime Standard of the Frankfurt Stock Exchange as of today. Around 170 million ordinary bearer shares were included in trading. The listing was accompanied by Société Générale, Quirin Privatbank and Credit Suisse, which also acts as designated sponsor in Xetra trading. Tradegate AG Wertpapierhandelsbank is the specialist on the Börse Frankfurt venue. Gateway Real Estate is a German real estate developer based in Frankfurt am Main. According to its own information, the company focuses on the development of high-quality commercial and residential real estate in high-demand metropolitan regions.
Frankfurt, New York, Zug, 9 April 2019 Deutsche Börse AG (Deutsche Börse) and Axioma, Inc. (Axioma) announced that Axioma has agreed to be acquired by Deutsche Börse for USD 850 million cash and debt free (around USD 820 million equity value) and will be combined with Deutsche Börse’s index businesses (STOXX® and DAX®) valued at EUR 2.6 billion. The combination will create a fully integrated, leading buy-side intelligence player that will provide unique products and analytics to meet the growing demand for an end-to-end platform. Axioma, a global provider of cloud-based portfolio and risk management software solutions, and Deutsche Börse’s index business are highly complementary and together will offer a broad suite of index and analytics products with global coverage. As a result, the combined company is expected to materially grow revenue and EBITDA, and is expected to achieve annualized pre-tax run-rate synergies of around EUR 30 million by the end of 2021. As part of the transaction, Deutsche Börse has entered into a strategic partnership with General Atlantic, a leading global growth equity investor. General Atlantic will invest around USD 715 million into the new company, which will be used to finance the acquisition of Axioma. Theodor Weimer, CEO of Deutsche Börse, said, “This transaction is a step change for our pre-trading business and fully in line with our Roadmap 2020 strategy, which besides organic growth builds on programmatic M&A and new technologies. We are also excited about the partnership with General Atlantic and believe it will help to further accelerate growth of the combined business and to achieve strong value creation.” Stephan Leithner, Member of the Executive Board of Deutsche Börse AG, responsible for the Post-Trading, Data & Index business, added, “We are convinced of the highly complementary nature of the combination, which positions us extremely well to benefit from key growth trends. We have a long-standing strategic partnership with Axioma and value its management. We look forward to growing our analytics and index platform together.” Sebastian Ceria, founder and CEO of Axioma, said, “The union of Axioma, STOXX and DAX under the Deutsche Börse umbrella creates a growth company that is uniquely equipped to help clients capitalize on the critical trends now reshaping the investment-management landscape. The combination of STOXX’s indexing expertise with Axioma’s best-of-breed analytical capabilities in risk management, portfolio construction and performance attribution is expected to result in strong near-term revenue synergies and creation of a platform for future growth.” Gabriel Caillaux, Managing Director and Head of EMEA at General Atlantic, stated, “We have closely followed the development of Deutsche Börse’s index assets for many years as we witness the global shift to passive products and the rise of indexed investing strategies. We are excited to be partnering with such a renowned firm. We are also highly impressed with Axioma’s track record and believe this combination provides a strong foundation for future growth. After our detailed analysis, we are confident that the combination will generate significant value creation and strong investor returns.” Anthony Arnold, Managing Director at Goldman Sachs, said, “We have been delighted to support Axioma as both an investor and meaningful customer of their best-in-class solutions and wish the management team continued success as they grow what will be an important and leading focused business with a compelling product suite.” Josh Lewis, Managing Partner of Salmon River Capital, added, “We are proud to have been a significant Axioma shareholder since 2007, and we are pleased with this outcome.” Founded in 1998, Axioma is a global provider of multi-asset class portfolio and risk management software solutions. The company delivers proprietary solutions and data services offerings to over 400 leading asset managers, asset owners, sell-side participants and hedge funds. Axioma generated approximately USD 100 million in annual contract value (“ACV”) revenue in 2018 and has grown ACV at a 23 percent CAGR since 2010. Axioma is currently investing its entire cash flow in further growing the business. The transition to axiomaBlueTM, Axioma’s cloud-based infrastructure platform, other new product offerings and strategic expansion are expected to drive ACV growth in line with historical experience. Deutsche Börse’s index business is the #4 global index player (based on last twelve months (LTM) 2018 September revenue) and home of the #1 European tradable index, the EURO STOXX 50® (based on the notional value of traded index derivatives contracts in 2018). The index business on a stand-alone basis generated EUR 168 million in gross revenues and EUR 115 million in EBITDA in 2018 and has grown at double-digit rates over the past five years. Deutsche Börse and Axioma have had an existing partnership since 2011 and have jointly developed innovative products, including factor indices and ETF products. All Deutsche Börse businesses will benefit from direct access to the buy-side and the enhanced analytics platform. Management anticipated that the combined company will be uniquely equipped to address trends that are reshaping investment management, including the shift to passive, the demand for smart beta and the transition towards index customization using technology. The combination will provide Axioma’s current clients with closer integration to data from a leading family of indices, which are critical components for designing investment strategies. Additionally, Deutsche Börse’s index business clients will benefit from access to Axioma’s powerful analytics that allow for creation and testing of custom indices. The combined company will be led by current Axioma CEO Sebastian Ceria. He will seek to preserve the strengths of both Axioma and the Index Business and accelerate the entrepreneurial spirit. A number of the Axioma management team, as current owners, will reinvest around USD 105 million of their sales proceeds into the combined company alongside General Atlantic. As a result, and depending on the roll-over, Deutsche Börse is expected to own approximately 78 percent of the new company, General Atlantic around 19 percent, and the Axioma management about 3 percent. The transaction is subject to approval by the relevant competition authorities and further customary conditions and is expected to close in the third quarter 2019. Perella Weinberg Partners LP and Deutsche Bank AG served as financial advisors to Deutsche Börse. Hengeler Mueller and Cravath, Swaine & Moore LLP served as legal counsel to Deutsche Börse. Centerview Partners LLC and Sullivan & Cromwell LLP served as financial advisor and legal counsel to Axioma. Milbank served as legal counsel to General Atlantic. About Deutsche Börse Deutsche Börse Group is one of the largest exchange organizations worldwide. It organizes markets characterised by integrity, transparency and safety for investors who invest capital and for companies that raise capital – markets on which professional traders buy and sell equities, derivatives and other financial instruments according to clear rules and under strict supervision. Deutsche Börse Group, with its services and systems, ensures the functioning of these markets and a level playing field for all participants – worldwide. For more information visit www.deutsche-boerse.com. About Axioma Axioma provides an integrated suite of front-to-back investment management solutions to a global client base, including asset managers, hedge funds, insurance companies, pension funds, wealth managers and investment banks. Our award-winning services are comprised of multi-asset enterprise risk management, portfolio construction, performance attribution, regulatory reporting and custom index design. With over USD 10 trillion in assets under management, our clients rely on Axioma’s solutions for decision intelligence throughout the entire investment process across the front, middle and back office. Enabled by Axioma’s market-leading technology from APIs to the cloud-native open environment of axiomaBlueTM and fully integrated content and analytics, our customers deploy Axioma’s solutions to create competitive advantage – from risk to returnTM. Learn more at www.axioma.com and follow us on Twitter and LinkedIn. About General Atlantic General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. Established in 1980, General Atlantic combines a collaborative global approach, sector- specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to build exceptional businesses worldwide. General Atlantic has more than 150 investment professionals based in New York, Amsterdam, Beijing, Greenwich, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai, and Singapore. For more information on General Atlantic, please visit the website: www.generalatlantic.com Media contacts: Deutsche Börse: Martin Halusa: +49-172-283-7216 Axioma: Molly McGregor: +1-646-612-7683 General Atlantic: Mary Armstrong: +1-646-710-5626 Investor contacts: Deutsche Börse: Jan Strecker +49-69-211-15474 Deutsche Börse analyst and investor conference call: Theodor Weimer, CEO, Gregor Pottmeyer, CFO, and Stephan Leithner, Member of the Executive Board, responsible for Post-Trading, Data & Index, will hold a conference call for institutional investors and financial analysts on 10 April 2019 at 2pm CET (1pm GMT, 8am ET). A presentation will be made available on the website of Deutsche Börse AG before the call (www.deutsche-boerse.com/ir). For those analysts and investors who wish to dial in to the event, the following lines have been set up. Germany: +49 30 232531428 United Kingdom: +44 20 3872 0882 United States: +1 516-269-8983 You can also follow the call live or listen to the replay via an audiocast using the following link: https://webcast.meetyoo.de/reg/tvu1YxCBCznV Cautionary note with regard to forward-looking statements: This document contains forward-looking statements and statements of future expectations that reflect management's current views and assumptions with respect to future events. Such statements are subject to known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied and that are beyond Deutsche Börse AG's ability to control or estimate precisely. In addition to statements which are forward-looking by reason of context, the words "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those statements due to, without limitation, (i) general economic conditions, (ii) future performance of financial markets, (iii) interest rate levels (iv) currency exchange rates (v) the behavior of other market participants (vi) general competitive factors (vii) changes in laws and regulations (viii) changes in the policies of central banks, governmental regulators and/or (foreign) governments (ix) the ability to successfully integrate acquired and merged businesses and achieve anticipated synergies (x) reorganisation measures, in each case on a local, national, regional and/or global basis. Deutsche Börse AG does not assume any obligation and does not intend to update any forward-looking statements to reflect events or circumstances after the date of these materials. No obligation to update information: Deutsche Börse AG does not assume any obligation and does not intend to update any information contained herein. No investment advice: This press release is for information only and shall not constitute investment advice. It is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this release are for illustrative purposes only.
Deutsche Börse Group has launched the new market data product Eurex Order by Order Futures + Options. This data product makes available the entire visible Eurex order book for both futures and options for the first time. Previously, this depth of market data was available for futures only. Eurex, owned by Deutsche Börse, is a leading international derivatives marketplace that offers about 2,200 products across a comprehensive range of asset classes. “Eurex Order by Order Futures + Options provides customers with a full trading picture by making information on all individual orders immediately available. This is important input, particularly for clients using computerised processes,“ said Hartmut Graf, Head of Data Services, Deutsche Börse. Eurex Order by Order Futures + Options includes side, price, timestamp and displayed quantity of each visible order and quote, trade price and traded quantity for each executed on-exchange trade, as well as trading status of each product and corresponding series. Eurex Order by Order Futures + Options is disseminated via the high-speed multicast data feed CEF Ultra+ Eurex Order by Order Futures + Options and via vendors. About Deutsche Börse – Market Data + Services In the area of data, Deutsche Börse Group is one of the world’s leading service providers for the securities industry with products and services for issuers, investors, intermediaries, and data vendors. The Group’s portfolio covers the entire value chain in the financial business. The business unit Market Data + Services is part of Deutsche Börse’s Post-Trading, Data & Index division and encompasses the Group’s extensive market data and index offering as well as regulatory services. The product and service range includes real-time and historical data from the Group’s trading venues Eurex and Xetra as well as from cooperation partners. It also spans more than 10,000 indices including the STOXX® and DAX® index families, the Regulatory Reporting Hub offering as well as reference data for more than 1,700,000 securities.
Deutsche Börse’s cash markets generated a turnover of €130.3 billion in March (previous year: €165.1 billion). €117.8 billion were attributable to Xetra (previous year: €152.2 billion), bringing the average daily volume to €5.6 billion. Trading volume on Börse Frankfurt was €2.9 billion (previous year: €3.7 billion) and on Tradegate Exchange €9.6 billion (previous year: €9.2 billion). Split by asset classes, equities amounted to €116.7 billion in the entire cash market. Trading in ETFs/ETCs/ETNs generated a turnover of €12.0 billion. Turnover in bonds was €0.4 billion, in certificates €1.0 billion and in funds €0.1 billion. The DAX share with the highest turnover on Xetra in March was Bayer AG with €6.3 billion. Commerzbank AG led the MDAX equities with €1.5 billion, while Aixtron SE topped the SDAX equity index with €246 million. In the ETF segment, the iShares Core DAX UCITS ETF generated the largest volume with €1.5 billion. Trading volumes March 2019 in billion euros: Xetra Frankfurt Tradegate In total Bonds - 0.3 0.1 0.4 Equities 106.5 1.4 8.9 116.7 ETFs/ETCs/ETNs 11.3 0.1 0.6 12.0 Funds - 0.1 <0.1 0.1 Certificates - 1.0 - 1.0 Mar 2019 in total 117.8 2.9 9.6 130.3 Mar 2018 in total 152.2 3.7 9.2 165.1 Further details are available in Deutsche Börse’s cash market statistics. For a pan-European comparison of trading locations, see the statistics provided by the Federation of European Securities Exchanges (FESE) at www.fese.eu.
”Welcome to the German Capital Market“ – new video lecture for capital market professionals from abroad
Deutsche Börse’s Capital Markets Academy is offering a new video lecture for bankers and other capital market professionals from abroad. In 150 minutes, the participants are made familiar with the market structures and the legal framework of the German capital market. The international markets share many similarities, nevertheless each domestic market has its own special characteristics. The Capital Markets Academy's new e-learning programme takes this up and is aimed at capital market professionals who are experienced in their home country but not familiar with the specific German conditions and regulations. "Our video lecture offers a compact but precise introduction to bankers who are new to Germany and want to gain a good overview of the market structure as well as its rules and regulations," explains Ulf Mayer, Head of Capital Markets Academy at Deutsche Börse. The video lecture in English can be watched flexibly and independently of time and place. The content is divided into two parts: 1) market structure in Germany and 2) capital market law and regulation. The lecture lasts about two and a half hours and consists of ten chapters. The corresponding handouts can be downloaded. A certificate of attendance will be provided in the end. Further information on the video lecture is available at www.academy.deutsche-boerse.com/e01. The Capital Markets Academy is the training provider of Deutsche Börse Group. It offers first-hand stock market knowledge in interactive classroom events with a high practical relevance and digital learning formats. With a focus on trading, clearing and settlement, it is geared to the products and services offered by Deutsche Börse Group. Other financial market topics, such as the functioning of capital markets and new technologies such as blockchain, round off the offering.
Deutsche Börse and its subsidiary for post-trading services, Clearstream Banking S.A., enhanced their credit line with a “positive incentive loan”. The financing takes the form of a €750 million consortium credit with a special feature: The development of the credit terms depends on the achievement of specific sustainability targets of the company. The extension by ESG criteria (environmental, social and governance) is a clear commitment of Deutsche Börse Group to establish sustainable finance in all business sectors as well as in its own financing. The transaction was concluded with a bank consortium led by BNP Paribas and Commerzbank. The sustainability performance of Deutsche Börse Group is verified annually by Sustainalytics, a leading sustainability rating agency. Based on this independent analysis and depending on the development of the ESG rating issued by Sustainalytics, conditions and financing costs of the credit are reaffirmed. The decision to complement the existing credit with a positive incentive element underlines the company’s engagement as co-founder of the “Green and Sustainable Finance Cluster Germany” to establish sustainable infrastructures in the financial economy. Essential sustainability targets of Deutsche Börse Group include good corporate governance and the promotion of a stable financial system. “The new ESG dimension which we added to the credit agreements reflects how comprehensively sustainability management is viewed within Deutsche Börse Group. This is an additional incentive to further integrate the own business activity in particular with corporate governance and ecological aspects,” said Kristina Jeromin, Head of Group Sustainability, Deutsche Börse and Co-Head of the Green and Sustainable Finance Cluster Germany. “With BNP Paribas and Commerzbank, we have found the right partners for this project.” Torsten Murke, CEO Corporate & Institutional Banking, BNP Paribas Germany, added: “We are delighted to have advised Deutsche Börse in our role as sustainability coordinator. This successful transaction is the outcome of close cooperation based on the shared understanding of both our companies that sustainable finance is instrumental to an ecologically and socially sustainable economy. Deutsche Börse’s transaction comes just a few days after the German Government’s announcement to make Germany a leading location for sustainable financing. This underlines the determination to help proactively shape a broad economic agenda to promote sustainable finance.” The credit agreement was syndicated by a group of 20 German and international banks. About Deutsche Börse Deutsche Börse Group is one of the largest exchange organisations worldwide. It organises markets characterised by integrity, transparency and safety for investors who invest capital and for companies that raise capital – markets on which professional traders buy and sell equities, derivatives and other financial instruments according to clear rules and under strict supervision. Deutsche Börse Group, with its services and systems, ensures the functioning of these markets and a level playing field for all participants – worldwide.
Deutsche Börse's T7 trading technology was introduced today on the Malta Stock Exchange. This enables market participants in Malta to benefit from a state-of-the-art technology that is already in use at various stock exchanges around the world. To date, the exchange has used Deutsche Börse's Xetra trading system. With the introduction of T7, latency in trading, meaning the duration of an order within the system, is again being reduced. In addition, international trading participants, using T7 for several markets, benefit from synergies through lower development and maintenance costs. “Deutsche Börse stands for high-performance capital market technologies. By migrating to T7, our trading participants will benefit from a sustainable and reliable system that has proven itself internationally in numerous markets,” says Simon Zammit, CEO of Malta Stock Exchange. “We offer our customers access to a significantly larger network of international market participants.” Stephan Schwandt, Head of Digitisation and Platforms in Deutsche Börse's Cash Market, says: “The launch of T7 on the Malta Stock Exchange shows once again that our technology solutions are highly valued internationally. T7 stands for low latency, enormous reliability and high flexibility. This is demonstrated by the wide range of usage on cash, derivatives and energy markets worldwide”. Various other exchanges in Europe and around the world also use Deutsche Börse's trading infrastructure. In addition to the Eurex Exchange, the Xetra venue in Frankfurt and the European Energy Exchange (EEX), which all use T7, cash market trading on the Vienna Stock Exchange and the Shanghai Stock Exchange is based on technologies from Deutsche Börse. The exchanges in Prague, Budapest and Sofia have been using the infrastructure for several years.
Eurex Clearing, one of the world’s leading central counterparties (CCP) and part of Deutsche Börse Group, extends the transparency of its real-time risk management Prisma based on cloud technology. As of 25 March, clients can simulate margin requirements for both exchange-traded derivatives (ETD) and over-the-counter (OTC) contracts, including cross-margining using Eurex’s Prisma Margin Estimator in Cloud (Cloud PME). “For a CCP, it is crucial to ensure transparency,” says Eurex Clearing’s Chief Risk Officer Thomas Laux. “We help our clients to better understand and simulate initial margin requirements for their existing as well as for hypothetical positions. This helps them to better assess potential impacts already before an order execution takes place.” Cloud PME is a cloud-based service that is free of charge and accessible via any web browser’s Graphical User Interface (GUI) or via an application programming interface (API). Users can enter individual positions or portfolios directly into the GUI or upload them as a simple CSV file. The resulting margin can then be viewed directly in the GUI. The service is part of Deutsche Börse Group’s strategic roadmap that fosters the use of new technologies to further enhance efficiency in the existing businesses.
Deutsche Börse is further developing its FinTech Hub: in cooperation with TechQuartier, it is now bringing new start-ups to the Hub in Frankfurt's Ostend district. The focus is on technologies for the capital market that will shape the function of the financial markets today and in the future. The first fintech to move in is transaction factory, a software and consulting start-up for financial service providers, banks and stock exchanges. Further start-ups will follow in the coming months. The expanded cooperation between TechQuartier and Deutsche Börse will contribute directly to the master plan of the Hessian state government. “The specialisation in our Hub shows that the fintech community in Frankfurt has developed further. This makes the region more attractive to founders and investors overall,” explains Peter Fricke, head of Deutsche Börse Venture Network. “At the same time, the individual initiatives from politics and business are growing even closer together,” says Fricke. The new fintechs, who are also part of the TechQuartier community, benefit from the new cooperation in several ways: in addition to plenty of space for networking, the Deutsche Börse Venture Network team is available to the founders at the FinTech Hub to answer questions and to provide targeted contacts to market experts and investors. “We bring fintechs from the region Frankfurt Rhine-Main together with national and international investors via the Deutsche Börse Venture Network and provide targeted support in their search for growth capital,” adds Fricke. Workshops and community events such as the established “Rooftop Talks” complement the offerings at the FinTech Hub. “We have also developed the German Equity Forum, which takes place annually in Frankfurt and is one of the leading European capital market conferences, into a platform for venture capital investors and start-ups,” explains Fricke. For TechQuartier, the new cooperation is a further expansion of its physical presence in Frankfurt. “Our role in the ecosystem is both to awaken entrepreneurial ambitions and to pave the way for the most promising founders and powerful companies to succeed,” says Sebastian Schäfer, Managing Director of TechQuartier. “The deepened cooperation with a key player in the financial industry such as Deutsche Börse and the integration of their venture expertise represents an enormous added value for our community and represent another promising step forward for our rapidly growing start-up scene here in Frankfurt.” Start-ups from the financial sector have been able to work at the Deutsche Börse FinTech Hub in Frankfurt since May 2016, offering a total of 450 square metres of individual offices and coworking spaces. The founders are supported by the Deutsche Börse Venture Network, which improves the financing situation of start-ups, for example through worldwide investor events or training for founders.
European Trade Repository REGIS-TR has announced the incorporation of its new UK trade repository (TR), REGIS-TR UK Ltd in London. The new TR has its operational infrastructure firmly in place and is ready to provide full UK EMIR regulatory reporting services from the first business day after Brexit, currently foreseen for 1 April. The British regulator, the Financial Conduct Authority (FCA) requires a meaningful presence for trade repositories in the UK in a post-Brexit world. “The UK will continue to be a major player in European and global finance. It is therefore key to maintain a continuous service for UK clients and to maintain the UK market,“ said Elena Carnicero, CEO of REGIS-TR. “Our overriding aim is for UK participants falling under EMIR requirements to receive seamless continuity of service when supervision is transferred to the UK. The FCA has been very helpful throughout the registration process, and we are looking forward to this new collaboration.” With the focus on both Brexit and an anticipated 2020 start date for Securities Financing Transactions Regulation (SFTR) reporting, REGIS-TR is bringing in new senior regulatory staff to strengthen and expand its existing UK TR team. The new company is based at the London offices of Clearstream, one of REGIS-TR’s parent companies. UK entities with a reporting obligation and those that report on their behalf are invited to contact REGIS-TR UK Ltd to discuss account models and to test its regulatory reporting solutions in its free, no-obligation user test environment. About REGIS-TR REGIS-TR is a leading European trade repository offering reporting services covering all the major European trade repository obligations. In accordance with legislation promoting market transparency, the detail of the trades reported is aggregated to present a composite view of current positions for the benefit of regulatory authorities and market participants. REGIS-TR is open to financial and non-financial companies and institutions.
Based on three new MSCI Dividend Point Indexes – the MSCI EM Dividend Point Index, the MSCI EAFE Dividend Point Index and the MSCI World Dividend Point Index –, Eurex will launch derivatives that enable market participants to hedge their dividend exposure around the globe. As a first step, Eurex will introduce futures contracts in the second quarter of 2019. The launch of these new products is another important milestone in a very successful working relationship between Eurex and MSCI. Eurex’s MSCI product suite is one of the exchange’s strategic pillars with an open interest of 2.3 million contracts (end of February 2019). “Eurex opens a new chapter in dividend trading by going global,” says Michael Peters, Member of the Eurex Board. “We are very pleased to utilize MSCI’s capabilities as an index provider to further serve our clients.” George Harrington, Global Head of Futures and Options Licensing at MSCI, comments, “From our conversations with the global investment community we know there is increasing demand from investors and traders alike to segregate the dividend cash flow of the underlying MSCI Index to have a simple way of calculating and benchmarking dividend income. We are pleased to continue working with Eurex as they expand their offering.” The new products complement Eurex’s existing suite of dividend derivatives and are a major new milestone to build on the exchange’s strong global market share in the segment. About MSCI Inc. MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visitt www.msci.com.
Deutsche Börse, Swisscom and Sygnum enter into strategic partnership to build a trusted digital asset ecosystem
Deutsche Börse Group, one of the world’s largest market infrastructure providers, Swisscom, the leading Swiss Information and Communication Technology (ICT) company and one of its leading IT service providers, and Sygnum, a Swiss and Singapore-based financial technology company in the regulatory process to obtain a Swiss banking and securities dealer license, have entered into a strategic partnership. The aim of this cooperation is to jointly build out and grow a trusted and regulatory compliant financial market infrastructure for digital assets. The tokenization of assets, the next major phase of asset digitization, has the potential to reshape global financial markets. In order to fully unfold its potential, the emerging tokenized economy needs a trusted, comprehensive and regulatory compliant ecosystem. This integrated ecosystem around digital assets, developed by strong and experienced partners, will enable investors to tap into these new asset classes and accommodate to future client needs. The core elements of the solution will include issuance, custody, access to liquidity, and banking services – all leveraging Distributed-Ledger-Technology (DLT) in a regulatory compliant environment. The strategic partners will jointly grow and enhance these foundational elements of the digital asset ecosystem in alignment with the requirements of market participants. The strategic partnership includes an investment by Deutsche Börse in Custodigit AG. The company was founded in 2018 as a joint venture by Swisscom and Sygnum. Custodigit AG provides a technical solution for the custody of digital assets for regulated financial services institutions. The integrated platform allows bank customers to manage the entire life cycle of their digital assets. As one of the main shareholders, Deutsche Börse will actively support the growth journey of Custodigit AG and its service offering. Furthermore, Deutsche Börse and Sygnum will become shareholders of daura AG. The company has developed a platform that uses Distributed Ledger Technologies to issue, securely transfer and register Swiss SME-shares, enabling non-listed companies to access the capital markets. As investors, Deutsche Börse and Sygnum will be actively involved in the companies’ future development. Moreover, Deutsche Börse and Sygnum are currently conceptualizing the establishment of a further building block of the ecosystem – a listing and trading venue for digital assets in the Swiss market. Access to liquidity via an open, regulatory compliant marketplace is considered a critical element for building a scalable digital assets ecosystem. Following obtaining a Swiss banking and securities dealer license from the Swiss regulator FINMA, Sygnum will provide comprehensive banking services such as custody, deposits, credit & lending, capital issuance via tokenization, brokerage and asset management within the digital asset ecosystem. The ecosystem established by the partners is based on Decentralized Ledger Infrastructure developed and operated by Swisscom, meeting security requirements of financial services institutions and allowing for scalability. The first products and services provided by the new ecosystem for digital assets are expected to be launched in the course of 2019. The transaction is subject to merger control clearance. Quotes Jens Hachmeister, Managing Director, DLT, Crypto Assets and New Market Structure, Deutsche Börse highlights: “This cooperation, the complementary infrastructure and expertise of the parties involved, is a great opportunity for creating a comprehensive and market leading ecosystem for digital assets. With Swisscom and Sygnum we have two highly recognized partners on board and we are looking forward to bundle forces. Continuing our investments in new technologies and driving the development around DLT forward is a key focus of Deutsche Börse Group. Switzerland, known to be a nucleus for financial markets innovation, is the ideal starting point for Deutsche Börse to drive this evolution forward.” Roger Wüthrich-Hasenböhler, Chief Digital Officer of Swisscom explains: "The collaboration with Deutsche Börse and Sygnum is the perfect step for the development of a comprehensive digital asset ecosystem. The cooperation allows to advance our vision of an extensive solution for the registration, safekeeping and transfer of digital assets. The partnership combines unique know-how in the fields of digital assets, banking, compliance and technology. Thus, we are in the perfect condition to create solutions for regulated financial service providers that are based on security, reliability and compliance, and enable them to enter a new financial services era." Mathias Imbach, Founding Partner & CEO Singapore of Sygnum adds: “Sygnum’s banking expertise and ability to innovate rapidly using Distributed Ledger Technologies, combined with Deutsche Börse and Swisscom’s experience in building and operating scalable financial services infrastructure, is a winning formula. We are thrilled to embark on this journey with two such strong partners to unlock the potential of the digital asset universe for institutional market participants – and ultimately spearhead digital assets’ transition from mainstream awareness to mainstream adoption. The establishment of a trusted digital asset ecosystem is also another strong example of Switzerland and Singapore’s continued leading role in global financial markets innovation.” Here you can find an overview of the digital asset ecosystem. About Deutsche Börse Group Deutsche Börse Group is one of the largest exchange organisations worldwide. It organises markets characterised by integrity, transparency and safety for investors who invest capital and for companies that raise capital – markets on which professional traders buy and sell equities, derivatives and other financial instruments according to clear rules and under strict supervision. Deutsche Börse Group, with its services and systems, ensures the functioning of these markets and a level playing field for all participants – worldwide. About Swisscom Swisscom, Switzerland’s leading ICT company is headquartered in Ittigen, Berne. About 20,000 employees generated sales of CHF 11.7 billion in 2018. Swisscom supports regulated financial institutions in digitization. One of the central fields are digital asset services. About Sygnum Sygnum is a financial technology company in the regulatory process to obtain a Swiss banking license. Sygnum empowers financial services for the digital asset economy. It develops an integrated solution to securely issue, store, trade and manage digital assets. The company was founded by an experienced, interdisciplinary team of experts and is backed by a distinguished group of individuals and institutions. Sygnum is rooted in two of the world’s leading financial hubs – Singapore and Switzerland. Media contacts: Deutsche Börse Leticia Adam, Tel. +49 69 211 12 766, email@example.com Swisscom Team Media Relations, Tel. +41 58 221 98 04, firstname.lastname@example.org Sygnum Switzerland: Rico Müller, Tel. +41 79 563 0601, email@example.com Singapore: Seah Wan Zhen, Tel. +65 96 182 046, firstname.lastname@example.org
The Supervisory Board of Deutsche Börse AG has proposed two new shareholder representatives for the company's control committee. This was preceded by a corresponding recommendation of the Nomination Committee of the Supervisory Board. The new members are to be appointed at the Annual General Meeting on 8 May 2019. The Supervisory Board of Deutsche Börse AG has a total of 16 members. Chairman is Dr Joachim Faber. The current members Prof Dr Dr Ann-Kristin Achleitner and Richard Berliand, will resign from the Supervisory Board at the Annual General Meeting. Therefore, a new election is necessary. The Supervisory Board proposes capital markets expert Charles Stonehill to succeed Richard Berliand. Ann-Kristin Achleitner will be succeeded on the board by management consultant Clara-Christina Streit. "On behalf of the entire Supervisory Board, I would like to thank Ann-Kristin Achleitner and Richard Berliand for their valuable work over many years and their consistently constructive contributions to the Supervisory Board of Deutsche Börse. With Charles Stonehill and Clara-Christina Streit, we have found two competent and professional successors with whom we will definitely cooperate very well," says Dr Joachim Faber. Charles Stonehill (*1958) has more than 30 years of experience in investment banking, capital markets and energy markets. He held various senior management positions at JP Morgan, Morgan Stanley, CS First Boston and Lazard Frères. Stonehill has various supervisory mandates and is currently Vice Chairman of Julius Baer Group Ltd. in Zurich where he has been a Board Member since 2006. Stonehill, who holds a degree in history, has British and American citizenship. Clara-Christina Streit (*1968) is independent management consultant and member of various national and international board of directors. After her studies in St. Gallen, she started her career at McKinsey, where she advised banks, exchange organisations, insurance companies and supervisory authorities until 2014. From 2013 to 2015, the German-American was a lecturer in the MBA programme at Nova and Catόlica Universities in Lisbon.
Commerzbank and Deutsche Börse execute legally binding securities settlement using distributed ledger technology
Commerzbank and Deutsche Börse have for the first time successfully used distributed ledger technology to execute a legally binding settlement of a repo transaction. The prototype transaction based on delivery versus payment was executed as part of a joint proof of concept examining the possible use of blockchain technology in securities settlement. For the transaction, digital tokens were generated for both commercial bank money (cash tokens) and securities (securities tokens). Distributed ledger technology was then used to execute the simultaneous swap of the tokens as a legally binding transaction. Deutsche Börse acted as the cash provider, Commerzbank as the borrower and main incubator, Commerzbank’s research and development unit, acted as the blockchain platform operator. The technology used and the underlying legal concept were developed jointly by the partners. The successful transaction shows that a legally-binding, efficient and transparent movement of tokenised securities and cash on blockchain based on a ‘delivery versus payment’ principle is feasible. Distributed ledger technology creates an immediate and simultaneous transfer of assets so that the transaction can be settled in real time. The key benefits of this shortened execution time are the reduced counterparty risk and the corresponding reduction of capital costs. This technology also permits the direct and transparent involvement of regulators and oversight authorities. The repo transaction is based on a public note of KfW Bank Group (ISIN DE000A2LQSP7) amounting to EUR 10 million and a seven-day term with a negative interest rate of -0.5%. Repos are collateralised money market instruments, which banks use to cover their short-term liquidity requirement by depositing securities. “Through the systematic development of blockchain technology, DLT is increasingly gaining in importance for a growing market. In past pilots we have focused on new issue projects; with the transaction between Deutsche Börse and Commerzbank we were now for the first time able to convert existing securities into digital tokens. We are delighted to support the transaction as a platform operator and, together with Deutsche Börse, to have reached such an important milestone in the adaptation of this future technology for the capital market”, said Michael F. Spitz, CEO of main incubator, the R&D unit of the Commerzbank Group. “The successful execution as part of the joint project motivates us to explore the efficiency of distributed ledger technology further. Our particular focus here is on the integrated payment function - cash on ledger - which we have successfully demonstrated. The development of different blockchain applications and setting new standards is a high priority for Deutsche Börse Group, and we will push ahead with this process in close exchange with partners, supervisory authorities and central banks”, stated Jens Hachmeister, Head of DLT, Crypto Assets and New Market Structures at Deutsche Börse. The results of the prototype settlement can serve as the basis for further developments. The next steps are linked closely to the creation of underlying legal conditions which are a requirement for a binding assessment of contractual relationships. The parties involved see themselves as trailblazers in this young technology and seek to create cornerstones for the financial market infrastructure. About Commerzbank Commerzbank is a leading international commercial bank with locations in just under 50 countries. In the two business segments Private and Small Business Customers, as well as Corporate Clients, the Bank offers a comprehensive portfolio of financial services which is precisely aligned to the needs of its clients. Commerzbank finances around 30% of Germany’s foreign trade and is leading in financing for corporate clients in Germany. Due to its in-depth sector know-how in the German business world, the Bank is also a leading provider of capital market products. Its subsidiaries comdirect in Germany and mBank in Poland are two of the world’s most innovative online banks. With approximately 1,000 branches, Commerzbank has one of the densest branch networks among German private banks. In total, the Bank serves more than 18 million private and small business customers, as well as more than 70,000 corporate clients, multinationals, financial service providers and institutional clients worldwide. In 2018, it generated gross revenues of €8.6 billion with approximately 49,000 employees. About Deutsche Börse Deutsche Börse Group is one of the largest exchanges worldwide. It operates markets characterised by integrity, transparency and security for investors wishing to invest capital and for companies wishing to raise capital. On these markets, professional traders buy and sell shares, derivatives and other financial instruments in accordance with clear rules and under strict supervision. Deutsche Börse Group’s services and systems ensure that these markets can operate and all participants have equal opportunities – worldwide.