Deutsche Boerse aims to offer trading, clearing and other services across the Asian timezone under its new brand Eurex Asia.
Reuters/Frankfurt
German stock exchange operator Deutsche Boerse aims to conclude a wide-ranging co-operation agreement with the Shanghai Stock Exchange (SSE) soon, completing a key element to its Asian expansion plans, Deputy CEO Andreas Preuss said. The deal would give Chinese investors direct access to the German and European financial markets, while German-Chinese financial market infrastructure would be strengthened to build co-operation between the two countries and aid the internationalisation of China’s currency, the renminbi.
“The project is very much alive and is going according to plan,” Preuss told journalists at a media briefing, confirming a Reuters report from October.
The group aims to double revenues from its Asian activities from just over €100mn now to around €200mn by 2017, the company said yesterday, one day after publishing its quarterly results. Deutsche Boerse aims to offer trading, clearing and other services across the Asian time zone under its new brand Eurex Asia. Lack of growth in its European business has forced the company to seek business opportunities abroad.
In January, the company received regulatory clearance in principle from the Monetary Authority of Singapore to set up a clearing house there.
The new clearing house, Eurex Clearing Asia, is one of the most important elements in the company’s strategy to expand in Asia and is expected to begin operating in 2016, one year later than originally envisaged.
Deutsche Boerse hopes its newly named chief executive, Carsten Kengeter, who takes office in June, will accelerate this initiative. Kengeter speaks Chinese and worked for several years in Asia for investment bank Goldman Sachs.
