Deutsche Boerse to Close Europe Market With No Business

Deutsche Boerse AG (DB1), owner of Germany’s main stock exchange and the Eurex derivatives system, is shutting its pan-European equity market after failing to persuade investors to use it.

The Xetra International Market, which opened for business in November 2009, will close on Dec. 13 because Frankfurt-based Deutsche Boerse wants to “concentrate liquidity in European blue chips,” the exchange said in a statement yesterday.

Deutsche Boerse, the biggest European exchange owner by market value, said in 2009 that it was shooting for 5 percent of the region’s equity trading. Instead, it has almost no market share, according to Bats Global Markets Inc., a rival bourse owner that provides closely watched data on European trading.

Bats Global Markets runs its own pan-European stock market, Bats Chi-X Europe, that handled about 23 percent of the region’s trading in the past five days, according to data compiled by Bats. That’s more than any other exchange owner.

The conventional exchanges owned by Deutsche Boerse, London Stock Exchange Group Plc (LSE) and NYSE Euronext (NYX) have lost business to markets known as multilateral trading facilities, which have succeeded in part by offering lower fees. While Deutsche Boerse’s attempt to branch out with Xetra International Market failed, LSE has found some success through its majority stake in Turquoise, which handled about 7.5 percent of European stock trading during the past five days, data compiled by Bats show.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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