In the wake of the global financial crisis, the push for more transparency led to expectations that more financial instruments would move from over the counter (OTC) to trading on-exchange. However, in the trading of retail derivatives such as warrants, knockouts and certificates, the reverse has occurred.
The banks that provide these structured products are under pressure to reduce costs, and exchange trading fees are an obvious target. German retail investors trade online via their accounts with brokerages such as DAB Bank, Cortal Consors or Comdirect, and can choose to execute trades on-exchange or OTC.
