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.
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 €0.60 (£0.51p) to zero.
The move is designed to attract algorithmic traders, who account for more than 40 per cent of Xetra’s volume.
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’s Chi-X and Turquoise, the platform backed by a consortium of investment banks.
Deutsche Boerse’s fee cut, which will be effective from 2 November, will see the average trader’s bill fall by around 13 per cent the exchange claimed, adding that clearing costs would fall by around 28 per cent.