The adoption of the Stuttgart model as a replacement for Baader Wertpapierhandelsbank AG's lead broker operations means that all asset classes are now available in QLP service quality. As we previously announced, Börse Stuttgart and Baader Wertpapierhandelsbank AG agreed on 23 November 2007 that they would continue to collaborate in the trading of international equities and participation certificates using the new market model. As anticipated, Baader began to offer QLP services for electronic trading in these asset classes from 3 March 2008. As a result, Stuttgart is now the only stock exchange in Germany to have phased out trading through lead brokers.
The Stuttgart market model combines the advantages of electronic trading, such as automation and extremely rapid execution, with the strengths offered by a trading system run by experts in terms of ensuring sufficient liquidity, greater trading and price quality, risk control and risk transfer. Investors consequently benefit from the best of both worlds. Under the new market model, prices are determined by the exchange's electronic trading system rather than the lead broker.

There are also plans to extend Börse Stuttgart's proven trading quality standards covering participation certificates and the equities of international issuers in 4-X (Foreign Equities Exchange), the trading segment for international equities operated by Baader. The best price and best size principles still apply taking account of the corresponding reference markets. Prices will still be determined by auction even for electronic trading.
Electronic trading in participation certificates and international equities will of course continue to be monitored for compliance with public law by Börse Stuttgart's legally established bodies. This neutral and independent surveillance of exchange trading ensures the high quality and reliability our customers have grown to expect.