Deutsche Börse has announced plans to extend the central counterparty clearing service of Clearstream to the over-the-counter government bond market.
News of the initiative came as the Exchange reported a 29% rise in 2003 earnings before interest and taxes (EBIT) to €453 million. Including net interest income from banking business, the company's revenue increased by 28% to €1.51 billion.
Chief financial officer Mathias Hlubek says that the integration of Clearstream into Deutsche Börse and the introduction of a cash market CCP have provided "new opportunities for growth".
Hlubek also warned that the cost of setting up Eurex US may run as high as €60 million, and hit 2004 earnings, although profits are still expected to reach at least €450 million.
The Börse is also understood to be weighing the opportunities for entering the reference data business, in an extension of an ongoing programme to develop a single source supply of corporate actions and new issues data for third party vendors.