Deutsche Börse is to start trading US stocks in euros on 14 September. The new segment will contain all of the US stocks in the Dow Jones Industrial Average, S&P 100, Nasdaq 100 and Dow Jones Global Titans 50, the so-called 'Xetra US Stars'.
Up to 200 US stocks will be traded on Xetra just as easily, quickly and cost-effectively as German blue chips, reducing costs to the level of a domestic securities transaction, says Deutsche Börse.
Goldman Sachs and Morgan Stanley have been signed up as market makers to guarantee liquidity. They will continuously quote binding bid and ask prices at a minimum of 50,000 euros per quote. Baader Wertpapierhandelsbank, Finacor Rabe and Wertpapierhandelsbank Seydler will also function in this capacity.
Clearstream Banking will clear and settle the transactions; by 7 September, all Xetra US Stars will be put into collective safe custody for this purpose.
The US segment is the first building block in the Global Markets Concept, says the Borse, which is to be expanded by further segments along the lines of the Dow Jones STOXX 50 and Dow Jones Euro STOXX 50 indexes as well as for the Asia-Pacific region.
Dow Jones Indexes will use the Xetra prices of the US stocks for its calculation of the Dow Jones Industrial Average and Dow Jones Global Titans 50 before the US markets open. The Dow Jones Global Titans 50 index calculation will also incorporate the Xetra prices for the US stocks before the markets open in the United States.