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Wednesday, March 10, 2010

Deutsche Boerse Developing New Trading Platform

By Jacob Bunge

Dow Jones Newswires

Of DOW JONES NEWSWIRES

BOCA RATON, Fla. -(Dow Jones)- Frankfurt-based exchange operator Deutche Boerse AG (DB1.XE) is developing a new trading technology platform that will reduce execution times across its equities and derivatives markets on both sides of the Atlantic, executives said Wednesday.

The new platform will support trading on Deutche Boerse's equities markets as well as its derivatives platform Eurex and the International Securities Exchange, the company's U.S. options market.

Gary Katz, chief executive of the ISE, said at a press event Wednesday that early tests of the technology have been "very encouraging." Execution times in the microseconds are being targeted.

Katz said the new trading platform would allow each individual exchange to maintain its current market structure, easing implementation. The new platform is expected to be rolled out by the end of the year at the ISE, with other markets to follow, according to officials.

The platform could also be marketed to other exchanges, they said. The new Deutsche Boerse-backed technology comes amid a fresh push by exchanges to develop and market trading services.

CME Group Inc. (CME) in recent weeks announced a new technology platform venture in conjunction with Brazilian exchange operator BM&FBovespa SA, which will underlie Brazilian markets and could be sold to international operators.

NYSE Euronext (NYX) last month saw its technology division tapped to build a new technology link for a group of Asian exchanges.