Press

Deutsche Börse AG, SWX Swiss Exchanges and their joint subsidiary Eurex on the one hand, SBF - Paris Bourse, Matif S.A. and Monep S.A. on the other hand signed a memorandum of understanding to form EURO Alliance. This memorandum will serve as a basis for a contractual agreement to be signed in the coming months.

The common goal and basis of the EURO Alliance is the full convergence of today's different platforms to a joint architecture allowing a decentralised, equal and standardised access for all members by January 2002. This will be achieved by setting up one single trading system, one single clearing system, one single international network and front end. Furthermore, the partners plan to extend the alliance to the cash markets in a similar way.

Prior to that, the first step in 1998 will be to jointly develop and promote Euro products. New fixed income and index products to be launched in this step will be traded only electronically, in parallel on Eurex and on the French platform NSC-VF. A cross-membership concept will be established which enables a direct access to the order books of the electronic trading systems. As of April 3, 1998, MATIF existing products will be traded both by open outcry and on NSC-VF.

The second step will be started with a cross clearing link probably in mid-1999. This link will allow significatly reduce margin requirements for the positions taken by members on markets of the alliance. At this time, each of these products will be allocated to either NSC-VF or Eurex. The alliance will also set up a joint unit for marketing, pricing, sales, product development and customer service.

In a joint statement, the partners of Euro Alliance confirmed their objective to become the preeminent European exchange for fixed income and equity derivatives in order to "win the Euro". The EURO Alliance will create the largest derivatives market in Europe.

The first joint activity will be to calculate and publish a group of European equity indices by the partners in cooperation with Dow Jones Inc from end of February on. The composition of these indices will be announced today at 5.30 p.m. (cet).