The main idea is to phase out the Automated Trading Program (ATP) discount model, which has been applicable since 2004. In future, pricing incentives will be extended to all participants trading on the basis of the new functionalities launched with Xetra release 10.0 in June 2009, such as the "Enhanced Transaction Solution" high-speed interface. Transaction fees for the execution of speed-optimized (non-persistent) orders in liquid instruments, in particular, will be reduced considerably. The new pricing model yields participants in Xetra trading an average of 13 percent lower transaction fees on the basis of this year's volumes.

Deutsche Börse had prepared for the increase of algorithmic trading early on. It has granted discounts on automatically generated orders since 2004 in addition to implementing measures to accelerate the reaction time of the Xetra system and to continuously increase capacity. The share of algorithmic trading volume on Xetra currently stands at around 45 percent. However, in addition to these orders, equities trading has become significantly more price-sensitive, demonstrated by the emergence of Smart Order Routers that optimize transaction costs and which are increasingly being used in Europe.

"Our new pricing model aims at all price-sensitive orders for securities tradable on Xetra. Thus, we create the basis for continued growth," said Frank Gerstenschläger, Deutsche Börse AG Executive Board member responsible for the Xetra segment (cash market).

For clearing, the existing ATP discount model will be extended to all Xetra orders, also as from 2 November 2009. Due to the strong decrease in average order size on Xetra from €30,000 (Q3/2008) to currently €19,000, the fixed clearing transaction fee will be halved to €0.09 per Xetra order as from 1 July 2009. This measure will have a positive effect especially on small, fragmented orders that are frequently generated in computer-supported trading. Transaction cost advantages to clearing customers will average 28 percent on the basis of this year's volumes.

Due to the stimulation in trading activity as a result of the new pricing model, Deutsche Börse expects a neutral effect on total cash market revenues.