Deutsche Boerse Ag · XETR:DB1
Deutsche Boerse — Deutsche Börse — Investor Day (June 2010)
90 slides from Deutsche Boerse's investor day presentation, Jun 24, 2010
Slide 1: Investor Day 2010
Investor Day 2010 Frankfurt/Main, 24 June 2010
Slide 2: Agenda
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Agenda 10.00 Opening 12.00 Lunch Break Eric Müller Head of Investor Relations & Treasury 13.00 Post Trade – Clearstream Jeffrey Tessler 10.05 Group Strategy Member of the Executive Board Reto Francioni Chief Executive Officer 13.30 Information Te
Slide 3: Group Strategy
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Group Strategy Group Financials Cash Market – Xetra Derivatives Market – Eurex Market Data & Analytics Post Trade – Clearstream Information Technology 2
Slide 4: Milestones In The Development Of Deutsche Börse Group
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Milestones In The Development Of Deutsche Börse Group 1990 Launch of fully electronic German derivatives market (DTB) 1992 Deutsche Börse AG is established 1997 Launch of fully electronic cash market (Xetra) 1998 Merger of DTB and
Slide 5: Overview Of Deutsche Börse Group
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Overview Of Deutsche Börse Group Shareholders1 32% US 20% UK 19% Germany 29% ROW Supervisory Board Chairman: Dr. Manfred Gentz 12 shareholder representatives 6 employee representatives Executive Board CEO Reto Francioni CFO Gregor
Slide 6: Deutsche Börse Group Well Positioned In The Global Exchange Sector
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Deutsche Börse Group Well Positioned In The Global Exchange Sector Sales revenue and EBIT 2009 (€m)1 Market capitalization (€bn)6 Deutsche Börse 2 1,053 2,159 10.5 CME 1,146 1,854 16.4 NYSE Euronext 3 570 1,759 6.3 Nasdaq OMX4 428
Slide 7: Scalable Business Model Positions Deutsche Börse Well For Growth
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Scalable Business Model Positions Deutsche Börse Well For Growth In Capital Markets Activity Revenues (€bn)1 Costs (€bn)2 Earnings per share (€) 7% CAGR 3% CAGR3 26% CAGR3 2.7 5.42 2.4 4.70 2.2 2.0 3 3.77 1.7 3.36 1.5 1.6 1.3 2.67
Slide 8: Deutsche Börse's Response To Developments In The Context Of The Financial Crisis
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Deutsche Börse’s Response To Developments In The Context Of The Financial Crisis Developments Deutsche Börse’s response n Lehman failure tested the stability/ n Near-/real-time risk monitoring proved robust and functioning of clear
Slide 9: Structural Growth Drivers Remain Intact
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Structural Growth Drivers Remain Intact And Will Continue To Support Volume Development In All Segments Cyclical factors Structural growth drivers n Economic development influences n Trading volume that originates from cash market
Slide 10: Continued Focus On Growth Initiatives And Operating Efficiency
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Continued Focus On Growth Initiatives And Operating Efficiency While Maintaining Strong Financial Position n Deutsche Börse increases the annual expenses for growth initiatives and advancements of technology by more than 50% to aro
Slide 11: Investment Program Is Geared To Support Structural Growth Drivers
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Investment Program Is Geared To Support Structural Growth Drivers And Build On The Company’s Strength In Technology Investment program 2010 Segment Main initiatives n New trading segment for European blue-chips launched in November
Slide 12: Business Development – Strong Sequential Growth In Q2/2010
Group Strategy Deutsche Börse Group, Investor Day 2010, 24 June 2010 Business Development – Strong Sequential Growth In Q2/2010 Cash Market (daily average in €bn)1 Post Trade (assets under custody in €tr)2 10.5 10.6 10.3 10.7 10.9 10.1 8.8 7.0 2007 2008 2009 Q1/10 Q2/10 4.4 5.0 Post Trade (settlemen
Slide 13: Group Financials
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Group Strategy Group Financials Cash Market – Xetra Derivatives Market – Eurex Market Data & Analytics Post Trade – Clearstream Information Technology 12
Slide 14: Q1/2010 – Sequential Increase Of Sales Revenue And Earnings
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Q1/2010 – Sequential Increase Of Sales Revenue And Earnings Before Restructuring Expenses Sales revenue (€m) Total costs (€m)1 Earnings per share (€) 539.8 515.6 519.2 500.9 505.4 2 329.8 1.11 311.7 301.5 3 288.5 3 0.92 2 0.95 27
Slide 15: Changes To The Financial Reporting Structure In Q1/2010
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Changes To The Financial Reporting Structure In Q1/2010 n The segment structure has been simplified by merging the IT and Corporate Services 1. New segment segments into the Xetra, Eurex, Clearstream and Market Data & Analytics s
Slide 16: Operating Efficiency – Strong Track Record For Cost Management
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Operating Efficiency – Deutsche Börse With A Strong Track Record For Cost Management Over The Last Years Development of revenues1 and costs2 (€bn) n Despite the market’s expectation for 6% average 6% CAGR annual revenue growth in
Slide 17: Operating Efficiency – Program To Optimize Processes And Costs
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Operating Efficiency – Program To Optimize Processes And Costs On Track To Deliver Expected Savings Ramp-up cost measures (€m) Breakdown cost savings Cost savings % of ~150 Type total Main components ~115 n Staff measures in all
Slide 18: Operating Efficiency – Effective Group Tax Rate Reduced
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Operating Efficiency – Effective Group Tax Rate Reduced By Some 10 Percentage Points Within 5 Years Tax guidance (effective Group tax rate) 2007 Effective Group tax rate 35.6%1 2008 Effective Group tax rate 28.5% (guidance <30%)
Slide 19: Capital Management – Strong Credit And Rating Profile
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Capital Management – Deutsche Börse Group Is Focused On Maintaining Its Strong Credit And Rating Profile n Continuing past practice, Deutsche Börse AG distributes funds not required for the Group’s operating business and further
Slide 20: Capital Management – Overview Key Metrics
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Capital Management – Overview Key Metrics Capital management metrics Minimum requirements Actuals (31 December 2009) Interest coverage (Group level) 16.0x 15.8x2 EBITDA to interest expenses from financing activities1 Tangible equ
Slide 21: Capital Management – Interest Coverage Ratio
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Capital Management – The Interest Coverage Ratio Excluding Restructuring Expenses Stood At 16.6x In Q1/2010 EBITDA Q1/2010 EBITDA €276.6m + Restructuring expenses €27.8m EBITDA excl. restructuring expenses €304.4m Interest covera
Slide 22: Capital Management – Clearstream International's Capital Requirements
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Capital Management – Clearstream International’s Capital Requirements Are Well Below The Company’s Regulatory Equity Regulatory capital requirements Composition of capital requirements 31 December 2009, €m 31 December 2009 Solven
Slide 23: Capital Management – Stable Dividend Of €2.10 For 2009
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Capital Management – Stable Dividend Of €2.10 For 2009 Paid In May 2010 Dividend payout ratio and dividend n Capital management policy foresees dividend payout Dividend payout ratio ratio of 40% to 60% 18% 21% 25% 28% 49% 50% 51%
Slide 24: Risk Management – Low Risk Profile
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Risk Management – Deutsche Börse Maintains Low Risk Profile Through Vigorous Risk Management Approach Deutsche Börse Group Risk characterization Mitigation Operational risk § Integrated IT function and extensive track record for
Slide 25: Risk Management – Counterparty Risk In The Clearing House
Group Financials Deutsche Börse Group, Investor Day 2010, 24 June 2010 Risk Management – Counterparty Risk In The Clearing House Effectively Managed By Collateralization And Lines Of Defense Lines of defense clearing house Risk management position (€bn) 1. Liquidation of open positions Close-out of
Slide 26: Cash Market – Xetra
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Group Strategy Group Financials Cash Market – Xetra Derivatives Market – Eurex Market Data & Analytics Post Trade – Clearstream Information Technology 25
Slide 27: Xetra Revenues Mainly Driven By The Level Of Trading Activity
Cash Market – Xetra Deutsche Börse Group, Investor Day 2010, 24 June 2010 Xetra Revenues Mainly Driven By The Level Of Trading Activity – Segment Accounted For 12 Percent Of Group EBIT In Q1/20101 Sales revenue and EBIT development (€m) Breakdown of sales revenue by activity Sales revenue Q1/2010: €
Slide 28: Noticeable Recovery Of Trading Activity On Xetra In 2010
Cash Market – Xetra Deutsche Börse Group, Investor Day 2010, 24 June 2010 Noticeable Recovery Of Trading Activity On Xetra In 2010 Development of cash market volumes1 Number of Xetra trades (m) n Order book volume increased 28% year-to-date (monthly average) compared to 2009 due to the increased mar
Slide 29: Customers Outside Of Germany Generate 73 Percent Of Xetra Volume
Cash Market – Xetra Deutsche Börse Group, Investor Day 2010, 24 June 2010 Customers Outside Of Germany Generate 73 Percent Of Xetra Volume – Customer Concentration Slightly Decreasing Xetra trading volume by member country1 Xetra membership volume breakdown1 Others 2% Switzerland 2% Market share Ire
Slide 30: Dependency Of Xetra Sales Revenue On DAX Trading Further Decreased
Cash Market – Xetra Deutsche Börse Group, Investor Day 2010, 24 June 2010 Dependency Of Xetra Sales Revenue On DAX Trading And Clearing Further Decreased Sales revenue per product line1 Sales revenue Q1/2010: €65.0 million n Due to the diversified sales revenue structure, only moderate dependency of
Slide 31: Regulatory Developments Influence Future Positioning Of The Cash Market
Cash Market – Xetra Deutsche Börse Group, Investor Day 2010, 24 June 2010 Regulatory Developments Influence Future Positioning Of The Cash Market Regulatory measure Objective/impact Markets in Financial Increase competition and customer protection in investment services Instruments Directive n Aboli
Slide 32: Xetra Maintains Strong Position For German Blue Chips
Cash Market – Xetra Deutsche Börse Group, Investor Day 2010, 24 June 2010 Xetra Maintains Strong Position As Most Attractive Venue For German Blue Chips In A Fragmented Environment Distribution of German blue chip trading volume Description and outlook n Large portion of trading activity Exchange an
Slide 33: Xetra International Market (XIM)
Cash Market – Xetra Deutsche Börse Group, Investor Day 2010, 24 June 2010 Xetra International Market (XIM) To Sustainably Position Xetra In A Pan-European Context Cornerstones of XIM offering Status quo and next steps n Trading segment enables plug-and-play solution for Xetra n Approximately 30 trad
Slide 34: Xetra Strategy Based On Three Core Measures
Cash Market – Xetra Deutsche Börse Group, Investor Day 2010, 24 June 2010 Xetra Strategy Based On Three Core Measures Extend Xetra’s position in order to create superior value in the European cash market landscape based on three core measures: Offering of efficient price discovery process for all pr
Slide 35: Derivatives Market – Eurex
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Group Strategy Group Financials Cash Market – Xetra Derivatives Market – Eurex Market Data & Analytics Post Trade – Clearstream Information Technology 34
Slide 36: Eurex Sales Revenue Mainly Driven By Index And Equity Products
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 Eurex Sales Revenue Mainly Driven By Index And Equity Products Breakdown of sales revenue by activity Sales revenue Q1/2010: €213.8m European Index n Futures and options on a range of global, European Other and national
Slide 37: Secular Trends Driving Long Term Surge In Demand At Eurex And ISE
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 Secular Trends Mainly Responsible For Long Term Surge In Demand At Eurex And ISE Development of traded contracts (m)1 15% CAGR Cyclical growth drivers Including US Options n Level and direction of indices, equity volati
Slide 38: Scalable Model Drives Profitability
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 Scalable Model Drives Profitability Sales revenue and EBIT development (€m)1 n Revenues in the Eurex segment driven by level of trading and clearing activity and business mix Sales revenue: 13% CAGR EBIT: 13% CAGR n Fee
Slide 39: Diversification Along Geographies, Customers And Products
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 Diversification Along Geographies, Customers And Products Eurex (incl. ISE) traded Eurex (incl. ISE) membership Eurex (incl. ISE) traded contracts by geography1, 2 volume breakdown1 contracts by product category1 Other
Slide 40: Scorecard 2009 – Eurex With Solid Business Model
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 Scorecard 2009 – Eurex With Solid Business Model In Changing Market Environment And Difficult Capital Markets Conditions Scorecard 2009 Key facts Customers § Extended member base in existing and new markets § Membership
Slide 41: International Securities Exchange (ISE) – Business Update
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 International Securities Exchange (ISE) – Business Update U.S. equity options market with high volumes and attractive market growth, characterized by highly competitive market structure and regulatory changes ISE well p
Slide 42: Eurex – Business Update On New Trading And Clearing Products
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 Eurex – Business Update On New Trading And Clearing Products Business update – listed trading products Business update – clearing products New products (examples) Eurex Credit Clear – European OTC clearing solution for
Slide 43: Business Update On Regulation
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 Business Update On Regulation – Framework Changes Likely With Impact Potential On Market Structure; Outcome & Timeline Volatile White Paper – Derivates market blueprint Regulatory projects and policy initiatives guideli
Slide 44: Management Agenda – Eurex Business Model Development
Derivatives Market – Eurex Deutsche Börse Group, Investor Day 2010, 24 June 2010 Management Agenda – Eurex To Develop Its Business Model Continuously With The Ambition For Global Leadership Management agenda Key elements Customers n Expand distribution reach across geographies n Membership Incentive
Slide 45: Market Data & Analytics
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Group Strategy Group Financials Cash Market – Xetra Derivatives Market – Eurex Market Data & Analytics Post Trade – Clearstream Information Technology 44
Slide 46: Breakdown Of Sales Revenue Q1/2010 – Market Data & Analytics
Market Data & Analytics Deutsche Börse Group, Investor Day 2010, 24 June 2010 Breakdown Of Sales Revenue Q1/2010 – Diversified Revenue Stream In Market Data & Analytics Breakdown sales revenue by activity Sales revenue Q1/2010: €52.5 million Issuer data & analytics incl. STOXX n Products: >5,500 ind
Slide 47: Sales Revenue And EBIT Development Underscore Growth Profile
Market Data & Analytics Deutsche Börse Group, Investor Day 2010, 24 June 2010 Sales Revenue And EBIT Development Underscore Growth Profile Of The Segment Sales revenue and EBIT development (€m) n MD&A based on less volatile revenue drivers compared to the trading businesses of Deutsche Börse: Sales
Slide 48: STOXX Acquisition Enables Global Index Activities
Market Data & Analytics Deutsche Börse Group, Investor Day 2010, 24 June 2010 STOXX Acquisition Enables Deutsche Börse Group To Lift Its Index Activities To A Global Scale Transaction rationale and market potential Value generation n Enable STOXX to build out global product suite n Get privileged ac
Slide 49: Management Agenda 2010/2011 For MD&A Focuses On Four Pillars
Market Data & Analytics Deutsche Börse Group, Investor Day 2010, 24 June 2010 Management Agenda 2010/2011 For MD&A Focuses On Four Pillars 1 n Build out global index family Globalize STOXX n Establish global distribution n Ramp up factory for global customized indices 2 n Establish benchmark suite E
Slide 50: Post Trade – Clearstream
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Group Strategy Group Financials Cash Market – Xetra Derivatives Market – Eurex Market Data & Analytics Post Trade – Clearstream Information Technology 49
Slide 51: Clearstream Is A Truly Global Market Infrastructure Provider
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Clearstream Is A Truly Global Market Infrastructure Provider Clearstream offers services to 2,500 top banks, global investment banks and over 50 leading Central Banks from over 110 countries worldwide and covers over 700,
Slide 52: Clearstream Covers A Substantial Portion Of The Securities Processing Value Chain
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Clearstream Covers A Substantial Portion Of The Securities Processing Value Chain Market infrastructure providers (CSD/ICSD) Clearstream ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ Euroclear ¢ z ¢ ¢ ¢ ¢ ¢ ¢ SIS ¢ ¢ ¢ ¢ ¢ z DTCC ¢ z ¢ ¢ ¢ ¢ z Ban
Slide 53: Sustained Profitability Since Full Integration Of Clearstream In 2002
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Sustained Profitability Since Full Integration Of Clearstream In 2002; International Business Accounts For More Than 80% Sales revenue and EBIT development (€m) Breakdown of sales revenue by activity Sales revenue Q1/2010
Slide 54: Resilient Revenues Paired With Strict Cost Management
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Resilient Revenues In Core Activities Paired With Strict Cost Management As Foundation For Future Growth Revenues and EBIT development (€m) Sales revenue less costs (€m)1 231 237 150 97 112 76 768 769 700 733 631 243 223
Slide 55: Domestic Custody Revenues Showed Resilient Development In 2009
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 1) Domestic Custody Revenues Showed Resilient Development In 2009 Domestic assets under custody (€tr)1 n Germany accounts for 17% of all EU and EEA debt issuance and 12% of all EU and EEA equity 2.2 2.2 capitalization 2.2
Slide 56: Domestic Settlement Business Characterized By Changing Market Environment
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 1) Domestic Settlement Business Characterized By Changing Market Environment Domestic settlement transactions (m)1 n German Equity market turnover recovered since 2.4 2.4 second half of 2009 2.3 2.3 1.9 2.2 n Sales revenu
Slide 57: Asset Growth In The International Custody Business
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 2) Asset Growth In The International Custody Business Has Exceeded Expectations In A Challenging Environment International assets under custody (€tr) n The long term growth trend reflects the globalization of the debt mar
Slide 58: ICSD OTC Settlement Volumes Have Remained Buoyant
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 2) ICSD OTC Settlement Volumes Have Remained Buoyant As The Money Markets Moved To Collateralised Exposures International settlement transactions (m)1 n Reduction in ICSD volumes in the period 2007 – 2.4 2009 related to l
Slide 59: Global Securities Financing: Strong Growth Proves Liquidity Hub
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 3) Global Securities Financing: Strong Growth Proves The Value Of Deutsche Börse’s Liquidity Hub GSF volumes outstanding (€bn)1 400 n Volumes outstanding exceeded €500 billion in Q2/10 300 n The higher margin Triparty rep
Slide 60: A Liquidity Hub Building Block – GC Pooling
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 3) A “Liquidity Hub” Building Block Changing The World Of Money Markets – GC Pooling Advantages of GC Pooling GC Pooling particularly during the Trading Eurex Repo Trade Financial crisis confirmation § Electronic Trading
Slide 61: Development of GC Pooling Outstandings
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 3) A “Liquidity Hub” Building Block Changing The World Of Money Markets – GC Pooling Development of GC Pooling outstandings (March 2005 – March 2010) ~€104 bn 90 (May 2010) 80 Daily average in € billion 70 60 50 40 30 20
Slide 62: Weaker Net Interest Income As A Temporary Consequence Of Central Bank Policies
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 4) Weaker Net Interest Income As A Temporary Consequence Of Unprecedented Central Bank Policies Customer cash balances (€bn)1 3 n Customer cash balances increased during the financial crisis and again during the time of t
Slide 63: Clearstream's Strong Service Quality Is Recognised By The Market
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Clearstream’s Strong Service Quality Is Recognised By The Market n Global Custodian Magazine - Agent Bank Survey Clearstream has been awarded the rank of top ICSD for six consecutive years (2004 to 2009) n Global Custodia
Slide 64: Clearstream's Strategy Is Based On Four Main Objectives
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Clearstream’s Strategy Is Based On Four Main Objectives The objective of Clearstream’s strategy is to: 1 Diversify from infrastructure services to a broad palette of securities services 2 Develop value-added, premium serv
Slide 65: Interaction Of Private And Public Sector Integration Initiatives
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Interaction Of Private And Public Sector Integration Initiatives Drives Evolution Of The Post-trade Landscape Public sector initiatives Risk of market Private sector initiatives dominance increased users’ support for T2S
Slide 66: The Emerging Environment Will Require New Differentiators
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 The Emerging Environment Will Require New Differentiators Successful providers will need to offer the market: 1 2 3 4 Value-added Multi-venue Pan-European Price/cost services support settlement leadership n Excellence in
Slide 67: Four Strategic Streams Will Differentiate Clearstream
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Four Strategic Streams Will Differentiate Clearstream Effectively In The Future Market Environment Cross-border services Market Customer Global value-added services Positions Clearstream as the central European hub covera
Slide 68: Clearstream To Offer A Single Window And Operational Interface
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Clearstream To Offer A Single Window and Operational Interface To The Future European Post-Trade Landscape Full CSD asset class coverage for all major European markets n Cross-border Services - access new markets for all
Slide 69: Clearstream's Strategy To Increase Coverage Of The Value Chain
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Clearstream’s Strategy To Increase Its Coverage Of The Securities Processing Value Chain/Extend Its Value Added Service Portfolio Market infrastructure providers (CSD/ICSD) 1 Clearstream ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ Euroclear
Slide 70: Clearstream Acts As An ICSD For Asia Pacific
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Clearstream Acts As An ICSD For Asia Pacific Singapore operating branch opened in 2009 Key facts n In 2009, Clearstream opened a full operating n 680 accounts located in 19 countries branch in Singapore to provide a full
Slide 71: Clearstream Is Well Positioned To Master The Future
Post Trade – Clearstream Deutsche Börse Group, Investor Day 2010, 24 June 2010 Clearstream Is Well Positioned To Master The Future Global leader in driving market standards þ Leading growth in custody market share þ Global leader in securities financing products þ Global leader in interoperability s
Slide 72: Information Technology
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Group Strategy Group Financials Cash Market – Xetra Derivatives Market – Eurex Market Data & Analytics Post Trade – Clearstream Information Technology 71
Slide 73: Deutsche Börse IT Is The Business Enabler For The Group
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Deutsche Börse IT Is The Business Enabler For The Group Along The Full Process Chain And For External Customers Process Information Trading Clearing Settlement Custody Xetra Clearstream Banking Luxembourg (ICSD) Business Ma
Slide 74: Trading Services – Addressing Ever Increasing Market Requirements
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Deutsche Börse Group Trading Services – Addressing The Ever Increasing Market Requirements Technical demands on the IT systems are continuously growing in several dimensions n In recent years, and still today, electronic tr
Slide 75: Continuous Enhancement Of Eurex And Xetra Trading Services
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Continuous Enhancement Of Eurex And Xetra Trading Services – Performance Measures Since Last Year For Deutsche Börse Group IT trading systems, performance improvements are not only part of the annual software releases, howe
Slide 76: Recent Performance Improvements – Eurex Release 12
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Recent Performance Improvements – Example 1: Eurex Release 12 With the introduction of Eurex Release 12 in November 2009, the processing times of non-persistent orders for futures have been reduced by more than 70% Eurex Fu
Slide 77: Recent Performance Improvements – Order Number Blocking For Xetra
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Recent Performance Improvements – Example 2: Order Number Blocking For Xetra With the introduction of order number blocking for Xetra in February 2010, the processing times have been reduced from ~3ms to ~2ms 6 n Order numb
Slide 78: Exchange Trading: Increasing Volumes Combined With Demand For Lower Latency
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Exchange Trading Is Characterized By An Increase In Transaction Volumes Combined With Demand For Lower Latency Eurex: Long-term evolution of peak volumes and transaction latencies 12 350 Relative Volume of Peak Day (2000 =
Slide 79: Performance Measures For US Options – New Trading Platform
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Performance Measures For US Options – A New Trading Platform To Be Deployed In Deutsche Börse Group’s Markets New trading platform – motivation The future technical requirements in US options trading are very demanding: n T
Slide 80: US Options Industry – Continued Transaction Growth
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 US Options Industry – Continued Transaction Growth Total US market price update messages and ISE quote throughput 2000/2003 – 20101 n In a competitive market environment, the number of ISE quotes grew by a factor of 55 in t
Slide 81: Deploying The New Trading Platform At ISE
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Addressing Market Requirements – Deploying The New Trading Platform At ISE The new trading architecture developed by Deutsche Börse Group IT will cope with the mentioned requirements – the new solution should serve as the t
Slide 82: New Trading Platform – Deployment Of New Technologies
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 New Trading Platform – Deployment Of New Technologies After launch at ISE, the New Trading Platform will be deployed to other markets of Deutsche Börse Group Objectives Benefits n Provide ultra-low latency trading using the
Slide 83: New Trading Platform – Benefits Beyond Performance Gains (I/II)
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 New Trading Platform – Benefits Beyond Performance Gains1 (I/II) Innovation Improvements n The new trading platform will be n Each exchange will have a choice of Operating platform independent so that it can hardware to mee
Slide 84: New Trading Platform – Benefits Beyond Performance Gains (II/II)
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 New Trading Platform – Benefits Beyond Performance Gains1 (II/II) Innovation Improvements Release roll-out with low customer impact Savings in release migration effort on Customer effort – through backwards compatibility an
Slide 85: Efficiency Improvement Efforts At Deutsche Börse Group IT
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Efficiency Improvement Efforts At Deutsche Börse Group IT The delivery of the new trading platform to other Deutsche Börse Group markets is a major contribution to the initiatives of Deutsche Börse Group IT to further incre
Slide 86: Efficiency Improvement Efforts – Standardization Of The IT Inventory
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Efficiency Improvement Efforts – Standardization Of The IT Inventory Deutsche Börse Group IT has started to adopt concepts of a “Private Cloud”, i.e. performing “Cloud Computing” within the computing environment in order to
Slide 87: Efficiency Improvement Efforts – Rationalization Of IT Sourcing
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Efficiency Improvement Efforts – Rationalization Of IT Sourcing n In 2004, Deutsche Börse Group IT started the Utilization of sourcing alternatives for IT Development1: implementation of a new sourcing strategy for Share of
Slide 88: Efficiency Improvement Efforts – Stable Operating Expenses
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Efficiency Improvement Efforts – Stable Operating Expenses Despite Significant Increase Of Business Activity Across The Group Business activity Operating expenses IT (indexed)2 2000 – 2009 1.2 Xetra Trades +330% 1.0 Transac
Slide 89: Summary Information Technology
Information Technology Deutsche Börse Group, Investor Day 2010, 24 June 2010 Summary Information Technology n Deutsche Börse Group IT is addressing the increasing requirements of current securities markets through continued investment in performance improvements. As a consequence, processing times h
Slide 90: Disclaimer
Deutsche Börse Group, Investor Day 2010, 24 June 2010 Disclaimer Cautionary note with regard to forward-looking statements This document contains forward-looking statements and statements of future expectations that reflect management's current views and assumptions with respect to future events. Su