German financial services company Deutsche Boerse has launched an improved offering for German retail investors in the hope of seizing ETF flow from regional exchanges, which have proved to be the go-to venues for private investors to date.
The new service, introduced in March, seeks price improvements for private investors versus the existing best bid and offer for ETFs on the order book with a new market-making function providing dedicated liquidity for retail.
The exchange has also reduced transaction fees for individual investors subject to their bank or broker participating in the service. Additionally, a real-time market data service that provides best bid and offer prices as well as order book depth data has been made available free of charge.
“German regional exchanges” have commanded much of the flow arising from booming retail demand for ETFs in Germany to date. As the chart below illustrates, their share of Europe-wide ETF value traded has risen to 14% in April month to date from 8% in January 2024, according to figures from data and analytics firm big xyt.
Source: big xyt
Included within the classification is Tradegate, an exchange that facilitates much of the volume from neobrokers—the digital platforms who offer the hugely popular ETF savings plans in Germany. Tradegate is 43% owned by Deutsche Boerse.
The rise of Germany’s regional exchanges has coincided with a falling market share for the London Stock Exchange (LSE) rather than the country’s principal bourse. Its share of European ETF value traded has slipped to 22% from 28% over the last 12 months, according to data from big xyt.
As ETF Stream reported in November, the LSE has been losing ground to Europe’s other leading ETF venues in the last two years.
This article was originally published at etf.com sister publication ETF Stream.
