Deutsche Börse is preparing to extend its trading system to stocks and derivatives from other European countries, in an effort to challenge the region's low-cost systems that have emerged to erode its market share, and to compete directly with its largest rivals, including NYSE Euronext and the London Stock Exchange.

The German exchange will launch Xetra International Market in the fourth quarter, according to a statement published today. The system will offer trading and settlement for the most liquid stocks in 19 European countries and their corresponding derivatives.