Deutsche Börse to take EUR200 write-down against under-performing ISE

Deutsche Börse is to take a write-down of EUR200 million on its 2009 earnings following a poor showing in US equity options trading by the International Securities Exchange.

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Deutsche Börse to take EUR200 write-down against under-performing ISE

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The German exchange operators says it will book a non-cash impairment charge of around €420 million in 2009, which will be partially offset by a €180 million tax credit.

In a statement, the Börse says: "The impairment reflects stagnation in the US equity options market in 2009 and a revenue decline at ISE during the course of the year."

The ISE has struggled to retain momentum in the US options market, which has been subject to difficult trading conditions and the arrival of cost-cutting competition from Nyse and Nasdaq.

Deutsche Börse says the charge should not eat into dividend pay-outs for investors, despite subdued trading volumes in cash and derivatives markets in 2009, due to strong cash flow generation from operations.

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