* Readying plans in case FTT hits derivatives - sources
* Clients could shift trading to Singapore, Zurich
* Deutsche Boerse says tax considerations play no role
FRANKFURT, June 30 Deutsche Boerse
plans to expand operations outside the euro area to give
non-European clients an opportunity to avoid the bloc's proposed
financial transaction tax, four people familiar with the
exchange operator's thinking told Reuters.
"The group has to be ready to offer its clients something
outside the euro zone if domestic trading is no longer
attractive because of the financial transaction tax," one of the
Deutsche Boerse's new derivatives clearing house in
Singapore, due to come on line in 2015, is expected to play a
significant role in the plans, the sources said.
In addition, Eurex Zuerich, a unit of the derivatives
trading arm Eurex, has applied for a trading licence from the
U.S. derivatives regulator, the Commodity Futures Trading
A Deutsche Boerse spokesman said Eurex was permanently
looking at possibilities to expand its client base and its
application to the CFTC was due to the implementation of the
Dodd-Frank Act in the United States.
"Tax considerations play no role," the spokesman said,
declining further comment.
Subdued trading activity on European markets has prompted
Deutsche Boerse to pin its hopes for future growth on developing
markets. Chief Executive Reto Francioni last year created a task
force to seek out opportunities in Asia.
The financial transaction tax (FTT) is expected to create
additional headwinds in Europe. Germany, France and other euro
area countries plan to introduce the tax to make the financial
sector pay back money received from taxpayers in the crisis and
dampen speculative trading that may fuel future crises.
However, the scope of the tax is not yet clear. Lawmakers
originally wanted to tax equity trades at a 0.1 percent rate and
derivatives at 0.01 percent but some types of business may be
Deutsche Boerse has said so far its main expectation is for
a tax focused on equities, which make up about 8 percent of its
revenue and which would have a negligible impact on its
A tax on derivatives would be a different matter, as they
make up nearly 40 percent of revenue at Deutsche Boerse.
"It's important to have back up solutions in place for the
long term," said another source close to the company, adding it
was not clear yet how much derivatives business customers would
shift out of the euro zone.
"You can never be sure what the politicians in Berlin and
Brussels might come up with," the person said.
(Reporting by Andreas Kroener, Edward Taylor and Jonathan Gould
in Frankfurt and Douwe Miedema in Washington; Editing by Mark