- online brokerage subsidiary flatex executed three times as many trades as usual
- reduced leverage limits remain in place until Monday evening
- flatex certificate “EU Referendum” was one of most heavily traded securities
- #BREFUGEES Welcome: FinTech Group expects new business through financial institutions migrating from London
In addition to sharp market fluctuations, the surprising outcome of the Brexit Referendum on Friday also led to record trading volumes. The online broker flatex, a member company of the FinTech Group AG (WKN 524 960, ISIN: DE0005249601, abb.: FLA.GR), executed about 80,000 trades on Friday on their perfectly performing IT platform – more than three average trading days combined. This is a record in flatex’s ten year history.
flatex established extensive safeguards before the Brexit Referendum that will remain in place until at least Monday evening. These include dropping the maximum selectable leverage for most CFD (contracts for differences) products from 100 to 20 to protect clients from being forced to make supplementary payments. In addition, market experts are monitoring the situation very closely, and client service was reinforced so it could handle requests from its 160,000 clients in Germany and Austria as quickly as possible.
The flatex index certificate “EU REFERENDUM” was the second most traded underlying security after the DAX, at the Stuttgart Exchange among knockout products on Friday. This certificate was issued by Morgan Stanley and sold under the flatex brand. The underlying is an index of 15 German companies. It is one of the first exchange traded products issued under the strategic partnership with Morgan Stanley signed in February.
For B2B business, FinTech Group AG expects significant demand from financial institutions that are currently based in London and will likely relocate to Germany.
“We regret the decision of the British people to leave the EU. However, this is also an opportunity for Germany, and specifically for the Frankfurt financial market. Many London-based financial institutions will have to re-orient themselves. This will generate new jobs in continental Europe, from which Frankfurt will also benefit. FinTech Group AG is expecting an increase in demand for their IT infrastructure and financial technology to result from this,” commented Frank Niehage, CEO of FinTech Group AG.
About FinTech Group AG
FinTech Group AG (WKN: 524 960, ISIN: DE0005249601, Ticker Symbol: FLA:GR) is one of the most significant innovative financial technology companies in Europe. Our B2C brands service a total of 200,000 private clients. Likewise, our B2B business lines are important technology partners for German and international banks and financial institutions.
Our wholly owned subsidiary flatex GmbH has been one of the innovation leaders in the German online brokerage market for years. More than 155,000 private clients both in Germany and internationally have chosen flatex’ clear and transparent pricing model.
XCOM AG, in which we hold a majority interest, was founded in 1988 and is a German pioneer in the area of financial technology. Today, XCOM AG is one of the most successful software and technology providers for banks and financial institutions.
biw Bank für Investments und Wertpapiere AG, which is also belongs to FinTech Group, has a full-service banking license and is the group wide backbone of our banking services. It also serves as outsourcing partner for other well-known banks (“white label banking services”) and is one of the most modern online banks in Europe.
FinTech Group AG is also an important partner for many young fintech companies in the up-and-coming German start-up scene, who benefit from our innovative profile.