latexDEGIRO would presumably benefit from an alleged EU ban on payment for order flow (PFOF)

flatexDEGIRO would presumably benefit from an alleged EU ban on payment for order flow (PFOF)

- flatexDEGIRO with only marginal revenue share of just 3% related to inducements from trading venues (PFOF)

- Adjustments in pricing of peer companies with business models based mainly or solely on PFOF would further strengthen flatexDEGIRO's leading market position in Europe

- flatexDEGIRO highly welcomes all initiatives by the legislator and or regulators to improve pricing transparency and settlement quality for retail investors

During the first nine months 2021, inducements received by various trading venues, often referred to as "payment for order flow" or "PFOF", accounted for a mere 3.2 percent of flatexDEGIRO's total revenues. flatexDEGIRO therefore does not expect that a potential ban of PFOF by the EU, as conjectured by recent media articles, would have any negative impact on the Group's operational or financial performance.

Instead, flatexDEGIRO would rather expect such a decision to have a substantially positive effect on its business development, driven by presumably necessary price adjustments of peer companies that mainly or solely rely on payment for order flows in order to offer allegedly low trading fees - an assessment shared by several covering analysts in a series of updates yesterday.

The share of revenues resulting from product partnerships for structured products (ETP) amounted to 8.4 percent in the first nine months of 2021. Such revenues from product partners have so far not been the main focus of the political discussion in the context of banning PFOF. However, even if this was to change, it would presumably not have a significant impact on the revenue development of flatexDEGIRO due to already prepared alternative revenue strategies.

flatexDEGIRO thereby also explicitly dispel false market rumours according to which the combined revenue share of PFOF and ETP partnerships could amount to 20-25 percent of the Group's revenues.

Contact:

Achim Schreck
Head of IR & Corporate Communications 
flatexDEGIRO AG
Rotfeder-Ring 7
D-60327 Frankfurt/Main
Tel. +49 (0) 69 450001 0
achim.schreck@flatexdegiro.com

About flatexDEGIRO AG

flatexDEGIRO AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR) operates one of the leading and fastest growing online brokerage businesses in Europe, executing millions of paperless securities transactions per annum. B2C customers in 18 European countries are serviced via the flatex and DEGIRO brands and offered a wide range of independent products at competitive pricing, based on a modern, in-house state-of-the-art technology.

With more than 1.25 million customers and over 75 million securities transactions in 2020, flatexDEGIRO is the largest retail online broker in Europe. In a time of bank consolidation, low interest rates and digitalization, the flatexDEGIRO Group is ideally positioned for further growth. Within the next five years, flatexDEGIRO aims to grow its customer base to 7-8 million customers, settling 250-350 million transactions per year - even in years with low volatility.

More information via https://www.flatexdegiro.com/en