Deutsche Börse has agreed to buy a 75% stake in Tradegate, a Berlin-based MTF catering to the retail market that is set to become a regulated exchange early next year.
Tradegate has been operating as an off-exchange trading platform since 2001 but early next year it will become a "regulated market within the meaning of MiFID".
On 8 January Deutsche Börse will acquire a 75% holding plus one share in the Tradegate Exchange. The German giant is also buying a five per cent share in Tradegate AG Wertpapierhandelsbank, one of the market makers in the platform, with the option to up this to 20%.
For the 75% stake in the exchange and five per cent in Tradegate AG Wertpapierhandelsbank, Deutsche Börse says it will pay in the "single-figure million euro range".
The exchange says the investment will help expand its offering for private investors and strengthen its position in the European retail market, providing, particularly for online brokers, new trading functions, longer hours and innovative order types at attractive prices.
Frank Gerstenschläger, member of executive board, Deutsche Börse, says: "The transition of the successful MTF Tradegate into a regulated trading venue as Tradegate Exchange is an opportunity for Deutsche Börse to employ its core competency and to operate an additional stock exchange in Germany. Our common objective is to expand retail business across Europe."