PREPOX is TRADEGATE®'s new tool for checking the mood of the retail market on new issues.

With immediate effect, the off-exchange information and trading platform TRADEGATE® offers trading in all German new issues made during the so called pre-IPO phase of a public offering. Selected foreign IPO's are also tradable. This is called trading on a when-issued-basis, referring to the first day of listing on the stock exchange.

The prices of new issues published by various financial service companies are known as "grey market" prices. This notional description bears a certain amount of truth because, up until now, it has not been possible to tell whether the prices are based on real turnover or demand from private investors.

Transparent trading on a when-issued-basis on TRADEGATE® is an effective way for private investors to indicate to the capital markets their interest in new issues (IPOs).

In the run up to the first listing, the percentage change in price of a new issue is measured against the average rate of the respective book-building spread and shown separately. Subsequently, all current German new issues flow into PREPOX volume weighted, based on the number of shares actually traded on TRADEGATE®.

Since well over 1 million private investors have access to TRADEGATE® this gives a reliable picture of the current estimation of new issues.

If the book-building spread is changed in the course of a new issue, the original average rate is still kept as the reference point because such a change made by the consortium banks already represents a reaction to the strength or weakness of the public's interest in a new issue.

By introducing PREPOX TRADEGATE® is providing a unique instrument for observing the attractive market segment of new issues. The range of services includes:

• Overview of all current new issues
• Display of the book-building spread
• Provision of currently tradable bid and ask prices
• Publication of the number of transactions
• Indication of current trends
• Illustration of the new issues market in a separate index