Deutsche Boerse to profit from turmoil
Deutsche Boerse AG Chief Financial Officer Thomas Eichelmann said that he expects a "good" third quarter as market volatility stemming from the global credit crunch and the US subprime fallout boosts trading.
"We're always happy about volatility," Eichelmann, who was hired from German consulting firm Roland Berger in April, said in an interview.
"The higher the volatility, the bigger the trading volume," said Eichelmann.
Exchanges worldwide have benefited as investors hedge themselves against turmoil spurred by an increase in credit costs amid rising defaults on home loans to US buyers with patchy credit histories.
Deutsche Boerse's electronic and floor trading more than doubled in July and August to 503.5 billion euros, while its Eurex derivatives exchange handled 58 percent more contracts, the company said.
Eichelmann said "everything is possible" when asked whether the company would be interested in buying the New York Mercantile Exchange, the world's largest energy market. Nymex has held acquisition talks with Deutsche Boerse, NYSE Euronext and CME Group Inc, two people familiar with the discussions said in June. Nymex last month confirmed it had held talks without naming the parties.
Bloomberg News
(China Daily 09/25/2007 page16)
