Deutsche Boerse CEO Targets 25% Euro Clearing Market Share in 2019

The transcript discusses a failed merger with LSE and a shift to a 'string of pearls' strategy focusing on investments in fixed income, Forex, and investment fund services. It highlights growth plans in Asia, particularly in Singapore, and the use of existing systems. The discussion moves to Brexit, emphasizing opportunities in euro clearing and the potential for increased market share with political support. Finally, it debates liquidity centralization and market dynamics, considering the costs for pension funds.

What was the alternative strategy proposed after the failed merger with LSE?

• A complete withdrawal from mergers and acquisitions

• A strategy called 'string of pearls'

• A focus on organic growth

• A new merger with a different exchange

Which business areas are targeted for investment under the 'string of pearls' strategy?

• Healthcare and pharmaceuticals

• Real estate and technology

• Retail and consumer goods

• Fixed income, Forex, and investment fund services

Why were plans for a derivatives venue in Singapore scrapped?

• Ability to conduct business from Germany

• High operational costs

• Regulatory challenges

• Lack of interest from investors

What is the target market share for euro-denominated clearing post-Brexit?

• 50%

• 25%

• 75%

• 10%

What dual strategy is being applied to increase market share in euro clearing?

• Expanding into new markets and cutting costs

• Partnerships with banks and lobbying politicians

• Reducing fees and increasing marketing

• Merging with other clearing houses and increasing staff

How could political support affect the euro clearing market share?

• It would have no impact

• It would decrease the market share

• It would lead to market instability

• It could potentially increase the market share

What is a key consideration for pension funds regarding euro clearing?

• The cost of rerouting transactions

• The speed of transactions

• The geographical location of the clearing house

• The reputation of the clearing house