Deutsche Börse Profile
Deutsche Börse AG operates as an international exchange organisation and market infrastructure provider. The company offers its customers a range of products, services and technologies covering the value chain of financial markets. Its business areas include pre-trading, such as the provision of indices and dissemination of market data, services for trading and clearing (settlement) of investment instruments, and post-trading, such as custody of securities and other financial instruments, as well as services for collateral management and liquidity management. In addition, the company develops IT solutions and offers IT systems worldwide.
Pre-Trading
The company assists its clients worldwide in their investment decisions by providing a range of data-driven products and index families. This includes offerings that facilitate proactive sustainable investment.
Index Business: Indices provide information on trends in companies’ share prices within specific sectors, countries or regions, offering an indicator of their business success. They also serve as a benchmark for assessing investment strategies. The company’s indices are designed and calculated by its subsidiary STOXX Ltd. The company’s offering gives investors a range of opportunities to analyse the situation on the international capital markets and invest in specific strategies. Issuers could build on this assortment to launch financial products for various investment approaches. STOXX provides them with smart data and enables them to customise indices to meet individual needs. The company’s brands are DAX and STOXX.
Data Business: The company turns raw data, such as the large volumes generated continuously by its trading and clearing platforms – into smart data streams. The core products here are order book data from the cash and futures markets. The company’s Data (Data Business) segment combines marketing of licences for real-time and historical trading data and providing analytics. Regulatory reporting services round off its market information offering. The company’s brand includes Deutsche Börse.
Trading and Clearing
The company organises and operates regulated markets for securities, derivatives, commodities, currencies and other asset classes. Once transactions have closed, the company’s clearing houses ensure they are fulfilled.
Financial Derivatives: Derivatives could be used to mitigate market and price risk. The company’s brands include Eurex, Eurex Clearing, and Eurex Repo.
Commodities: The company’s European Energy Exchange AG (EEX) Group operates European marketplaces for electricity and gas products and a regulated, transparent market for emissions trading certificates. Greenhouse gas emitters could trade these certificates to buy or sell insufficient or surplus emissions rights, while at the same time regulators could fix the total volume of greenhouse gas emissions. In the area of electricity trading, EEX’s markets help increase the proportion of renewable energies. The company’s brands include European Commodity Clearing, European Energy Exchange, Nodal Clear, Nodal Exchange, PEGAS, and Powernext.
Currency Trading: The company’s 360T platform is expanding its trading systems’ functionality, opening up a stream of new opportunities for clients that were previously unavailable in foreign exchange trading, such as an electronic trading book and central clearing. The company’s brand includes 360T.
Securities trading: The company’s Xetra is the global reference market for German stocks and the European trading exchange traded funds. The company also operates the Frankfurter Wertpapierbörse (FWB, the Frankfurt Stock Exchange), which offers various segments and transparency standards for the admission and listing of securities of large and small enterprises operating on a national or international level. Its services in this area are rounded off by various pre-market initiatives. The company’s brands include Börse Frankfurt, Deutsche Börse, Deutsche Börse Cash Market, Deutsche Börse Venture Network, FWB, Tradegate, and Xetra.
Post-Trading
Once securities have changed hands and have been assigned to the correct account, they have to be held in custody and managed. Within the company, this is the responsibility of post-trade services provider Clearstream. Additional services, such as securities lending, collateral management and fund services ensure liquidity management and compliance with regulatory requirements. Securities held in custody fulfil a range of functions and increase liquidity, so that post-trade services make a decisive contribution to capital market transactions’ stability and efficiency.
Post-Trading (settlement and custody): Technologies, such as blockchain are playing important role in the custody business, and the company operates in this area. The company’s brands include Clearstream, LuxCSD, and REGIS-TR.
Investment Fund Services: The company’s fund processing platform, Vestima, provides settlement and custody services for clients. The company’s brands include Clearstream and Vestima.
Collateral Management: Collateral management and securities lending are growth areas for the company's post-trading operations alongside Global Securities Financing. The company has established a service designed to improve integration of client order books. This offering, which would be further expanded going forward, focuses on ensuring the fluidity of, and optimising, assets held in custody. The company’s brands include Clearstream, Eurex Clearing, and Eurex Repo.
