E*TRADE Financial sells German and Nordic trading operations
E*TRADE Financial commented on its international business strategy, that it currently engages in two international lines of business:
- Cross-border trading, where customers residing outside of the U.S. trade in U.S. securities.
- Local market trading, where customers residing outside of the U.S. trade in non-U.S. securities.
Cross-border trading represents the key strategic component of E*TRADE’s global investing offering and is a competitive differentiator for the Company. The Company intends to operationally restructure its cross-border trading line of business to obtain efficiencies and higher margins. Additionally, following a careful review and assessment of competitiveness and profitability, the Company is also pursuing an exit of local market trading. E*TRADE has recently entered into agreements to sell its local market trading operations in Germany and the Nordic region.
“Given our recapitalization and the positioning of the Company for a return to long-term growth and profitability, we continue to sharpen our focus on products and markets where our business has strong margins and competitive advantage. This international restructuring is designed to improve profitability in our offshore operations and reinforces that we expect our future growth to come from our U.S. online brokerage franchise,” said Donald H. Layton, Chairman and CEO, E*TRADE FINANCIAL Corporation.
The Company also offers a global trading product to its U.S. customers, enabling equity trading in six international markets and five currencies. This product offering is not affected by the restructuring of the Company’s international cross-border and local market trading operations.
Weiterführende Links:
