FRANKFURT Jan 23 German stock and derivatives
exchange operator Deutsche Boerse is mulling another
round of cost cuts to offset a slump in trading volumes, four
sources familiar with the company's thinking said on Wednesday.
"The scale of cuts has yet to be formally decided," one of
the sources said.
Lower market volatility and a structural shift in the
industry have dented trading volumes. Higher capital
requirements for bank trading operations have led to a fall in
Deutsche Boerse declined to comment.
A formal discussion between the management board and
supervisory board about the need for further cost savings is
expected to occur in mid February, the source said.
Once the scale of cost cuts is clear, Deutsche Boerse can
decide what steps are needed, the source said. It is not yet
clear whether staff cuts or moving jobs to cheaper locations
will be considered, the source said.
"Something needs to be done but we are still working on how
to get there," another second source said.
In January, Deutsche Boerse said derivatives trading volumes
fell 18 percent and turnover on cash markets dropped 23 percent
In 2012, turnover on derivatives markets at subsidiary Eurex
Group fell to approximately 2.3 billion contracts, compared with
2.8 billion contracts in 2011.
The exchange operator said that there were 1.16 trillion
euros ($1.54 trillion) of contracts on its cash markets in 2012,
down from 1.51 trillion euros in the previous year.
In October, Deutsche Boerse was forced to abandon its 2012
revenue and profit targets because lower euro zone market
turbulence hit trading volumes.
(Reporting By Edward Taylor and Andreas Kroener; editing by