The Deutsche Börse says it is adopting a cost-cutting effort that aims to trim€100 million in annual expenses, and resuming its stock buyback.

The exchange announced that the planned efficiency program is “focused on optimizing operational costs while retaining planned investments in future growth.” The program is expected to generate €50 million in savings on operational costs in 2008. The full potential of the program will be realized from 2010 onwards, it projects. Total restructuring charges to achieve the cost savings will amount to €50 million, which will be fully provisioned in 2007.

As a result, Deutsche Börse has set a guidance for total costs in 2008 of €1.13 billion. The cost guidance for 2008 compares to an estimated total cost base for 2007 of €1.2 billion, before the restructuring charges.

Deutsche Börse also announced that it plans to issue €1.5 billion in long-term debt and hybrid bonds to fund its acquisition of the International Securities Exchange. It initially planned a €1.3 billion issue. “Given the higher amount of long-term debt/hybrid financing for ISE under the revised financing concept, a significant amount of the accumulated earnings in the current year are no longer necessary to finance the ISE acquisition,” it says.

This will enable the company to resume its share-buyback program immediately. For the remainder of financial year 2007, Deutsche Börse plans a share buyback volume of around €300 million.