FinTech Group expects new business through financial institutions migrating from London
June 27, 2016: 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, 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.