Deutsche Boerse set to cut fees

DEUTSCHE Boerse could kick off a winter price war among trading platforms later this year after saying it will cut trading fees on its Xetra platform to counter the entry into the market of rival platforms.<br /><br />The Frankfurt-based exchange said it would cut the fees it charges high-frequency traders by 25 per cent to 0.36 basis points, while its minimum transaction fee will fall from &euro;0.60 (&pound;0.51p) to zero. <br /><br />The move is designed to attract algorithmic traders, who account for more than 40 per cent of Xetra&rsquo;s volume.<br /><br />A spokesman for the exchange said the cuts were also a response to the plethora of new platforms competing for market share in cash equities, including Nomura&rsquo;s Chi-X and Turquoise, the platform backed by a consortium of investment banks.<br /><br />Deutsche Boerse&rsquo;s fee cut, which will be effective from 2 November, will see the average trader&rsquo;s bill fall by around 13 per cent the exchange claimed, adding that clearing costs would fall by around 28 per cent.