Welcome, ladies and gentlemen, and thank you for joining us today for the 2018 Investor Day of Deutsche Börse Group. I would also like to welcome all participants that are following today's event via the live video webcast. With me today are Theodor Weimer, Chief Executive Officer of Deutsche Börse, and Gregor Pottmeyer, Chief Financial Officer. Theodor and Gregor will present the first three parts of today's presentation. Afterwards, the heads of the new nine business segments of Deutsche Börse will present their area of responsibility. At around 12:00 P.M., we will commence the question and answer session, and after the Q&A session, we invite you to lunch, which will be served just outside of this room. With this, let me hand over to you, Theodor.
Thank you, Jan. Good morning, everybody. Warm welcome from my side as well. Ladies and gentlemen, it is my pleasure to be here today and for the first time at the annual investor conference of Deutsche Börse. As you are perfectly aware, I took up my role only at the beginning of the year 2018, and I met with some of you, and it was great meeting with you. I would like to share with you my initial thoughts, what I figured out over the first couple of months, and to share with you the so-called Roadmap 2020. I spent the first 100 days or so to understand the situation of Deutsche Börse, the competitive environment, and our opportunities and avenues going forward. What is our strategy position at the beginning, and then we developed the so-called Roadmap 2020.
Let me start by saying, in a very candid way, what our position is. We are the number one capital markets infrastructure provider in Europe, which is, per se, a good positioning. We are a strong and a very resilient company. What I figured out is that we are extremely robust in our business model against challenges from various sides, and it's my job today to explain this to you in more detail. Point number 3, we are a technology leader in our industry, both from the perception side as well as from the side that we say by ourselves. We think we are a true technological leader. Over the last couple of years, our share price developed fairly nicely, and I'm proud to say that since the beginning of the year 2018, this continued, which made me feel quite positive.
Ladies and gentlemen, right from the beginning, I've challenged my dear colleagues here, my managers, and asked questions like: Where are we good at? Where do we have deficiencies? How can we reduce the multiple gap, which is still existing to other top players in the market? Where can we grow structurally? Where can we grow structurally beyond the cyclical growth? How feasible is the secular growth, which we have identified in the past, and which strategic and technological avenues shall we pursue? I launched a strategic review and developed jointly with our senior team, which is sitting here in the first row. We launched this strategic review and then developed this Roadmap 2020. It was my explicit wish today that my dear business segment heads are present because I strongly feel you should not only know the CEO, the CFO, and Jan Strecker.
We are obliged to show to you that we have a very strong second-line management team, the so-called business segment heads, therefore, they will stand up and present their individual businesses today respectively. I am sure they will do a great job, and you will like them, and you will understand that we have a great management team with deep and broad knowledge of our exchange business. Let me now start with the so-called point of departure, what I have figured out and where we stand before we come to the Roadmap 2020. You are all aware Deutsche Börse operates in an environment with very high dynamics. These dynamics can be characterized as follows: We have multiple strong secular growth opportunities.
We are in a business, in an industry where ongoing consolidation of the industry happens, we see a high level of M&A activity, though, I must admit, with very high multiples paid. Very high multiples paid. We have uncertainty in the market, not coming only from the Brexit or from Italy over the last couple of days. Strongly, we have the feeling that cyclical growth opportunities, on the other side, are increasing because the market volatility arises, which is good for us, together with a higher interest rate. Last but not least, at the bottom of the chart, you can see that technology opportunities and new entrants in the industry are both a challenge and an opportunity. We are operating, as you are perfectly aware, in a very broad value chain with the pre-trading, trading, and clearing business, and the post-trading business. It's fairly well-balanced.
We have more than 50% on the trading and clearing side, and in the post-trading side, 36%, and our stocks and data business on the pre-trading side, 18% counts for roughly 11% of our business. We are number four exchange globally. You are all aware of this. I can move quickly on here. Over the past four years, we have shown solid financials, proving the scalability of our business model. Since 2014 until end of 2017, we grew by 9% on the top line, CAGR up to EUR 2.5 billion. If you look deeper into this growth of the net revenues, you can see two-thirds of our 9% CAGR growth is coming from organic growth. One-third is stemming from M&A and inorganic growth, and out of the organic growth, another two-thirds is secular growth.
With the past, just to recall this important message, we have grown 4% on the secular side, on the structural side, we have given you guidance already given the very complex ad hoc process. We have given you guidance that we will grow in future at least 5% on the secular side, which is a 20% increase. On the cyclical side, we grew by 2% and given the market environment, I think you can do your own calculations. We come to that later on. On the net profit side, we increased our net profit by 11% year by year, simply because we managed our cost fairly solid. In terms of the changes of the environment, we see fundamental changes coming from the business side, from the regulatory side, also from the market side.
What we did here, we simply try to cluster changes in the market on the regulatory side to our value chain. It's quite obvious on the market side, you see both on the pre-trading side as well as on trading side. You see the increasing importance of the buy side and passive investments. We see it for many years already. We see the consolidation of the assets under T2S over the last couple of years on the post-trading side. Brexit provides an opportunity for us on the Euro clearing side and on the regulatory side, we see that the OTC to on-exchange opportunities are really very interesting for us. Also, a growing demand for collateral management and for collateral mobilization is a strong part, important part of our post-trade business.
On the cyclical side, as I mentioned before, increased interest rates and higher structural market volatility is helping us right now in 2018. You saw the numbers of the first quarter. We think despite a certain dip in April, we think it is structurally coming back. What I have done with the story, and you participated nicely, many thanks for that. We conducted a survey among the buy side and sell side firms with you and asked you for your input for me. What shall be my CEO priorities? How do you see us as a stock? What are the major findings out of this survey? Firstly, Deutsche Börse is primarily seen as a growth stock. 61% of you want us that we further grow and that we increasingly grow.
We are being perceived as a company which is a little bit too much dependent on cyclical growth. You want to see us more coming up with secular growth initiatives. That's why I have focused a lot to challenge existing secular growth opportunities and why I want to stress this today in a discussion with you. The third pie here is a very important one. 73% of you told us that our existing strategy, even prior to me showing up here, has been perceived as a fairly credible or even highly credible strategy. Therefore, the whole strategy, what I am presenting today during my Roadmap 2020 exercise, is not a revolutionary strategy. Why should we simply change the strategy just because I'm the new CEO? I think it wouldn't have been a professional behavior. My very candid view about the Deutsche Börse can be summarized as follows.
We have strategic assets. The assets are we are the number one European player. In our business, size simply matters. We have a technologically technology leadership. We have, third, a very diversified portfolio covering the entire value chain. We have a robust business model in times of cyclical headwinds, and we have very solid secular growth opportunities. I'd also like to mention, ladies and gentlemen, where are our points of attentions, where are our weak spots and weaknesses. You guys are smart enough to identify them by yourself, but I think it's also important that you realize that we have identified the following ones. Firstly, we have still a certain valuation multiple disadvantages. While we have managed to be pretty good on the sum of the parts versus the market cap. On the valuation multiple side, we have still an existing disadvantage.
We are slightly more cyclical in our business than others, we have some white spot areas. Indeed, on the fixed income side, we are fairly poor on the way as an asset class, on the buy side, we could have done better in the past. These are two white spots which we have to address. The last point is we have certain subscale businesses, especially on the commodity side, but even more on the foreign exchange side, it's our job to further grow the subscale businesses. Taking all this into account, my top three priorities for the new CEO, so to speak, are I want and I need to grow the company. I need to maintain technology leadership, and I think we should, and we will, demonstrate execution discipline.
It's pretty clear if you're in a business which has so high margins, such a great EBITDA position, it's always very important to also focus on consequence management and this kind of stuff. Why? I have two financial targets here. One is to reduce the evaluation multiple discount, the other one is we need to grow massively our subscale business segments. Let me now come to the Roadmap 2020. What are the key pillars? We have three major pillars. One is we need to continually focus on our organic portfolio, which is, by the way, a very strong portfolio. We need to become better on the M&A side. We need to do a very programmatic M&A approach, we need to focus on new technologies.
Because we want to grow so fast, because we want to invest in new technologies, which is of paramount importance for our business, we need to reduce structural cost. I think it's also important that we reduce structural cost. A, because for each and every EUR 100 million I can save on the structural cost side, it also applies a 20 times multiple. Therefore, reduction of structural cost is necessary in order to drive the technology investment also to fund our growth. Let me go through briefly, let me start with a chart which is a little bit consulting like here on the x-axis. You can see the secular growth. On the y-axis, the cyclical growth. The good news and the first observation is we have no businesses which are not growing.
We are running a company with a portfolio where we have only growing businesses. Point number one. Observation number two, we've got businesses which have a very high growth opportunity, namely STOXX, 360T, or our Investment Fund Services business, where we have really very high secular growth businesses. Observation number three, our biggest business is the Eurex business, which has also a very fundamental high secular growth opportunity. Our EEX business is growing nicely right now even more than high, our data business is per se a secular growth business, as you perfectly know. Then we have a couple of other businesses which are more dependent on the cyclical side. First of all, our Clearstream business, which is our second largest business, where we are more dependent on market volatility and especially more dependent on industry growth.
GSF business and Xetra businesses are lower on the secular growth side, but have very nice upsides as Philippe will demonstrate later on. On the GSF side, very nice cyclical growth opportunities, but also some secular opportunities. The last observation is we have some interdependencies between some of the businesses and high growth businesses. Take the example of Clearstream. Clearstream is a pretty large organization on the post-trade side, we were able to spin off a business, the IFS business. This IFS business which we did spin off, is now a very high secular growth business. This is the model. We have a broad value chain where we are active in. We need to identify across the value chain those opportunities where we can derive smaller parts, where we can create new secular business, and then make money and revenue out of it.
I'm getting quite excited and enthusiastic about it, but this is the way we will work in the future. Contrary to the perception of some, also some of you maybe, we already have a solid track record at the small or mid-sized M&A activity. Some of the more recent transactions are shown here on the chart. We have already delivered the expected ROIC levels or like on [AX] or STOXX, others are still in the delivery phase like Nodal or 360T.
As you can see from the very recent announcement, we announced at the beginning of the year, the Swisscanto Funds Centre in London, which we have acquired a couple of weeks ago, fresh from the kitchen, so to speak, we announced this morning, we signed last night, another business, 360T acquired, basically last night, the acquisition of the electronic communication network business from GAIN Capital Holdings. We bought a business in the range of EUR 100 million, which is very nicely, is complimenting our own 360T business. Congratulations to you. I think we have done on the 360T side, a great job. Now we can demonstrate it. We can grow further. We can do cross-selling in our existing database. We can potentially enter into this more, if you want, during the Q&A session. We try to deliver.
It's a string of pearls, what we are doing, I tell you, I promise you, that's not the last M&A add-on transaction, what we are doing. Carlo, congrats again for a great add-on M&A activity. On the M&A side, we have identified those areas where we want to invest inorganically. Five areas. One is the data area, the commodities, the foreign exchange side, the fixed income side, where we are pretty point-blank, the investment funds side. Investment funds we delivered this year with Swisscanto Funds Centre. On the foreign exchange, we did this transaction, as I said last night, others we are looking at. We will do a very systematic opportunity screening. I personally spend a lot of time on the M&A side, I do not exclude partnership models, partnership formats as an option, especially in regions where we are not active.
I can exclude, as of today, organic regional strategies. We will not do primarily organic strategies in Asia or in the States. We have proven that we can't do it. Right. We need to enter into new formats. We need to go via M&A activities. The financial guidelines for our M&A approach is not surprisingly, we want to see a return on invested capital of more than 10% after three to five years, and it needs to be cash accretive. By the way, before you come up with the question, this applies, of course, for the last two and most recent transactions we have done. Let me now come to the technology side of the equation. We are a perceived technology and we think we are a true technology leader in our industry, and we are determined to keep four transformational technological trends, which we think to embrace.
One is DLT, blockchain area. The second one is big data, advanced analytics. Third is the cloud technology, robotics and automation and AI. From those technology trends, we obviously are not expecting immediate substantial change to the way we are operating today. We think it is important to prepare ourselves for the future and also reduce the likelihood of being disrupted by these trends, and I'd be very explicit, even if we do consider this likelihood to be very small. We take our position very seriously. We are a hybrid of a technology company and a financial company, and we are perceived as the strongest in the market on the technology side. Therefore, it's our damned obligation that we keep our technological edge here. Therefore, we will work hard in order to stay close to the most advanced technological aspects of our industry.
What we will be doing is the following. We will enter from the phase 1, which is the use case phase of blockchain and technology, we'll enter the next phase. The next phase is a very systemic exploitation of the possibilities in this market. Right. One of our best guys, the former head of staff of Carsten and myself, Jens Hachmeister, will take personal responsibility with quite a sizable team, yeah, to move the DLT blockchain business forward in order to create revenues out of it, and in order to stay ahead of the curve. On a big data advanced analytics side, we also need to do a systematic monetization of existing data pools. Currently, quite frankly, we are pretty good of exploiting existing data pools in the various silos of the value chain.
We need to become better across the value chain and even across our own and beyond our own value chain. Cloud. Cloud is a huge topic, and I think we need to see clearly that we need to systematically explore how we can benefit most from the mature cloud offerings. We think there's too much debate in our industry that we are talking about public cloud and securities issue, but we know there's so much a time to market opportunity in this cloud area that we consciously hired somebody as our Chief Information Officer and the Chief Technology Officer, Chief Operating Officer, who has a strong cloud background. Time to market is key, therefore, cloud is a big topic for us and for me. Robotics, automation, artificial intelligence, it is a bespoken topic for years.
When I worked in my former position last year and the year before in a bank, we simply did a lot of AI. We went through, together with our team here, and we've identified easily double-digit million EUR savings potentially coming from automation of AI. We are in a business, and we are an IT giant, and we need to play on this robotics and AI stuff. I mentioned the three pillars, organic growth, M&A growth, and the technology side. Now I'd like to share with you the basic beliefs. The basic beliefs are twofold on the structural cost side. Firstly, the allowed cost in our organization is simply 50% of the revenue increase is allowed for the growth increase. That is the model, how we run the company from a bird's eye perspective.
We additionally say, since we want to grow so strongly, since we want to invest into technology, we want to shift the cost base. We want to save EUR 100 million by the end of 2020 through a reducing of the workforce of roughly 350 FTE. Ladies and gentlemen, let me be very clear. I am not steering the company together with Gregor and my dear ex-colleagues. I'm not steering the business based upon the number of FTE. I'm steering the business on the cost side based on EUR cost. Cost savings. Whether it's at the end of the day, a little bit more than 350 or a little bit less, it's not decisive. Decisive is that we get the EUR 100 million. We are working hard. We've really worked hard yesterday, a couple of hours, in order to develop measures and means how we can save EUR 100 million.
It both covers HR cost and non-HR cost. We will certainly get rid of the managers. Quite frankly, we are pretty well underway there. We will reinvest in growth. Deutsche Börse will strengthen its execution discipline through four main levers, says the chart. Consequence management is heavily undervalued. Normally, in this kind of events, what we are doing here. But what I am completely convinced of is you need to have segment heads. You need to identify strong segment heads, and then you need to create full transparency about the segment results, and then you need to give the business segment heads full P&L responsibility. That is the model. It's pretty clear you've got ExCo members. They are responsible for more than one segment. You've got segment heads, these guys in front row here. They do run the business. Their job is grow the company.
We make sure to manage the cost. We will make sure to create shared values and this kind of stuff. On the ExCo side, on the management board side, we have developed, I think a little bit clearer responsibility, more business focus also on the ExCo side, and a stronger technology focus. I come to that in a second. We have professionalized some of the key processes, we'll continue to do. We had Christoph Hansmeyer , former colleague of mine of Goldman's. 12 years at Goldman's, where we simply want to professionalize our whole M&A stuff. We also need to professionalize our steering process. As you can imagine, if you're sitting on a 50% plus margin, some levels of policy is inherent in such a company, and we need to overcome this. This goes further to the consequence management.
At the end of the day, consequence management means investment allowance, but also, if necessary, compensation cuts. We also need to dare to get rid of managers who are not creating enough value for our company. Let me now come to this fancy slide where you see the pictures of the existing board. I'm glad to report that I was able to complete the executive changes. Let me lead you through. Basically, we have strengthened our Executive Board by adding three new ExCo members. They are replacing Jeffrey Tessler and Andreas Preuss, who are retiring, did a great job. Andreas is going to retire next year. Jeffrey is going to retire this year. If you go through, Gregor Pottmeyer, very well known to you, will of course keep his role as CFO. Hauke.
Hauke was responsible for the cash business, and she will assume, as of now, additional responsibility for the HR function, which is becoming increasingly important, especially if you do restructuring stuff. She was also appointed the Director of Labor, which is a legal requirement. Thomas Book. Thomas Book will be responsible for the trading and the clearing, excluding the cash market, which stays with Hauke. Thomas has been with Deutsche Börse for many years. He's a highly respected manager, internally as well as externally, has a deep and a broad expertise. We call him internally our professor. Whenever you need to get truly deep in the stuff, you go to seek input from Thomas. Stephan Leithner, the first row. He is here today. Thanks for that, Stephan. Will be responsible for the post-trade business and our data and index business. It's a big business on your shoulders.
He is a proven financial markets expert with an excellent national, international network. He knows our company for years, worked at Eurex and the Frankfurter Wertpapierbörse on the council. I think it's finally fair to say he has a broad and deep management expertise on very high level in large financial institutions. Christoph Böhm, who couldn't make it today, is the new guy who will join in late fall. It's not finally clear when he's going to join, but officially, he's been appointed as of 1st of November, as Chief Information Officer and Chief Operating Officer. He's a highly regarded IT expert with a background on the cloud side. He has a proven track record in major, big institutions. I personally look forward to work together with all our new ExCo members. I'm convinced we will have fun and hopefully good results.
Now, ExCo has been supported by strong business segment heads. They will come on stage after Gregor's presentation. They will introduce themselves, but I can assure you, these are strong guys with a deep and broad expertise, with us for many years. If I may go through briefly because they don't dare to say what I dare to say. Erik Müller is a roche de bronze of our organization. A strong guy, worked with us for many years in various, different positions. He is leading our efforts right now with massive time spent on the clearing side. Euro clearing is a potential big business for us. On the commodity side, Peter Reitz, who has contributed in various functions over the years, is completely dedicated on the commodity side. It's hard to talk with him about different stuff. You can talk with him about his family and about commodity.
He is burning for it. Peter, I hope you will continue in playing a great role there. We have our entrepreneur. I'm really glad that he wears a tie, which is normally not the case, which is Carlo Kölzer. Carlo is our entrepreneur. He founded 360T, and he is tremendously well, at least from my point of view, integrated in our company. We've got Philip Brown. Philip Brown is London-based. He's our superstar sales and client guy who knows the post-trade business on the core product side extremely well. And he works together with Phil Seyll, who is a rather business builder type, who came up with the idea of IFS, who jumped on it and who built it up. He's responsible for the GSF and the IFS business.
Last but not least, we have our analytical brain, which is Holger Wohlenberg, who is deeply in the business of data and stocks. I'm really glad working together with you guys and let's move ahead. With this, I would like to hand over to you, Gregor, and we go to the segment heads.
Thank you, Theodor. I would also like to welcome all of you. I want to walk you through our details of our growth strategy and obviously, also into details of our cost initiatives. We have three cornerstones of our midterm financial targets. First and most importantly, growth. We want to grow organically with a secular basis of more than 5% every year until 2020. That's our commitment. On top, we expect cyclical tailwind over the next three years, we do not guide for that. You all have your own models. You will do your assumptions. We do not give guidance, but we are convinced that there are positive cyclical elements over the next three years. As a consequence, our net earnings will grow by 10%-15% every year for the next three years.
That also means from a cost management perspective, we want to make sure to show you the scalability of our business model. If net revenue grow by 10%, operating expenses can grow up to 5%. If net revenue grow by 5%, costs have to be flattish. That's our strong commitment. To enable us here, we decided to structurally reduce our cost base by EUR 100 million over the next three years. We want to reinvest that in growth and in technology. With regard to our capital management policy, basically unchanged. Dividend payout ratio of 40%-60% with a targeted range of 50%. We want to keep the AA rating to ensure and to fulfill the Clearstream business requirements. Here, Theodor already mentioned that over the last three years, we were shown the scalability of our business model.
Net revenue grew by 9%, net profit grew by 11%. Specifically in 2016 and 2017, we were able to do very proactive cost management to ensure scalability. As you are aware, that's my favorite slide as it nicely summarizes the composition of the secular growth opportunities and the cyclical growth opportunities. Secular growth opportunities are in the range of EUR 400 million-EUR 600 million, or taking the midpoint of EUR 500 million. That translates in a CAGR of 6.4%. If we are successful in all of these areas, then we are above this minimum of 5% secular growth we want to achieve. What are the main targets here? We want to grow our STOXX business by EUR 50 million-EUR 70 million, benefiting specifically from the trend to passive investment.
We want to grow our data and regulatory service by EUR 30 million-EUR 50 million, specifically benefiting from our new offered in the beginning of the year, regulatory reporting services. In the trading and clearing part, OTC interest rate swap opportunity, we expect a growth of EUR 50 million-EUR 70 million, until 2020. EEX commodity business, we will win additional market shares from the OTC market. We want to grow in the next three years in the range of EUR 70 million-EUR 90 million. FX business, we want to grow and also benefiting from the trend from OTC to on-exchange. We want to grow by EUR 50 million-EUR 80 million. Here you see a little bit bigger bandwidth. The OTC part, there's no regulatory requirement to use a CCP here, so it's on a voluntary basis. It's different compared to the interest rates swaps.
New Eurex products in the range of EUR 60 million-EUR 80 million. Pricing, as we intensively discuss in all our meetings, we see also some opportunities here to grow roughly EUR 30 million over the next three years. Even on our cash equity business, we currently win some market shares from the OTC, so we expect some growth here. Post-trading in the range of EUR 100 million-EUR 150 million. We still believe that we are good positioned to win structurally business out of our T2S opportunities. I think Phil will explain to you later on a little bit on that. Investment Fund Services, nicely growing business. More than 10% revenue growth, EUR 60 million-EUR 80 million over the next years. GSF collateral management, there are, with regard to securities lending, some structural growth opportunities. Cyclical opportunities, I think we come to that on the next pages.
I will cover it here. If you go through the nine business segments we have here. In five business segments, we expect growth of more than 10%, including secular and structural opportunities. That's DAX, that's Eurex, that's EEX, that's 360T, and Investment Fund Services. In three areas, we expect 5%-10%, Clearstream Post-trading, and the GSF business. For our cash equity business, we expect to grow roughly by 5% over the next three years. What are our cyclical growth opportunities? We see them specifically in the Eurex and in the Clearstream segment. It's primarily driven by interest rates and to a lesser degree by volatility. Overall for Eurex, we see some EUR 100 million-EUR 200 million cyclical opportunities, and for Clearstream some EUR 100 million-EUR 250 million cyclical growth opportunities.
Eurex is well-positioned to capture cyclical effects in terms of volatility and interest rate changes. Our revenue upside expectation is based on the conservative assumption that we will reach the former level of activities we have already seen 2007, 2008, and we expect to come back at least on the level of 2020. There are also good reasons to believe that our activity levels will exceed historical peaks. Clearstream is also well positioned to capture cyclical effects from tighter monetary policies. The net interest income you see currently also already a meaningful uplift due to the higher Fed fund rates in the U.S. market. In 2018, we achieved EUR 237 million NII, with EUR 5.5 billion customer cash balances. Today, we have EUR 12.5 billion customer cash balances, 55% is U.S. dollar based, 30% is EUR based, and 15% relates to other currencies.
Basically, the sensitivity is if interest rates increase by 1%, that would translate in EUR 125 million additional EBIT. Higher interest rates are also beneficial to the debt issuance activity of the financial institutions. Banks are currently well-funded by ECB. There's a strong decline here in this bond issuance activity. We expect if monetary policy changes from the ECB, we will see also increased issuance activity. Let me now come to our plans to reduce our structural cost base. On the one hand side, we want to maintain the scalability of our business model. On the same time, we want to increase our investments in technology and growth segments. To balance that, we decided to structurally reduce the cost base by EUR 100 million over the next three years, and reinvest them into growth and technology.
The EUR 100 million cost savings are equally divided over staff and non-staff costs. What are the most important levers to reduce the cost by EUR 100 million? On the staff base, you see, and already mentioned, the management delayering. We are talking about 50 managers. We want to improve our processes via process automation and digitization. Robotics, artificial intelligence as a basis. We want to reduce our staff cost structurally by doing more of near-shoring or young-shoring. We already have more than 800 people in Prague. We build up here, and that's a very strong basis for our operational basis. We have another strong basis in Cork, where we have more than 350 people, and where we expect to grow by roughly 200 people over the next three years. Obviously, we want to cut some positions to improve our efficiency.
With regard to the non-staff costs, obviously, IT costs is a very big basis. We want to reduce that via IT simplification and legacy replacements. We want to enhance our IT sourcing strategy. Using more of offshoring. We want to optimize procurement. We will do spend reduction across all cost categories, like renting, like marketing, like travel, and so on. The savings of EUR 100 million are equally split over the next three years. We will achieve one third of the savings in 2019, two thirds of the savings in 2020, and 100% in 2021. Again, the savings will be reinvested into growth and new technologies under the assumption that the net revenue growth allows for that. Means if we are able to grow by 10%.
The cost to achieve are roughly EUR 200 million, and they're mainly related to staff costs such as severance packages and early retirements. The reinvestments of the EUR 200 million will be deployed on segment growth and the new technologies. In addition, the staff cost to achieve of the EUR 70 million will be directly reinvested into technologies to improve our operation efficiency. Overall, the total investment of EUR 270 million goes roughly by two thirds into growth and one third into efficiency increase. Our capital management policy is basically unchanged. Our capital allocation approach is very well-balanced between distribution and growth. With regard to the regular dividend payout ratio, we target a ratio of roughly 50%. We plan to use excess cash for external growth opportunities, such as the two recent acquisition of Swisscanto Funds Centre and the GTX ECN businesses.
If there still remain some excess cash, we would also consider further share buybacks, but this is not our base case. With this, I want to hand over to Thomas Book, who will kick off the presentation for the business segments with Eurex.
Ladies and gentlemen, also from me, a warm welcome to everyone. It's great to be with you here today and have the opportunity to introduce myself to those who don't know me yet. I started a little over 20 years ago with Deutsche Börse, being part of the team initially that rolled out DTB's electronic platform and attacked the Bund future. Right from start, I saw the importance of technology in our sector. For some years, I then led clearing before I was appointed CEO of Eurex two years ago. I have experience in both fields, which is sort of the perfect match for the new position. I'm very excited then to take on, in July, responsibility for clearing and trading of Deutsche Börse Group, which is approximately 44% of our revenue base.
I will go into briefly to explain how we want to grow this on a secular basis. I really look forward to also the dialogue with you later on and being challenged by you. That is a good thing. I take over the role for trading and clearing in times of great change for the derivatives industry. There are three core game changes that we believe will drive our business. That is changing investment behavior, regulation, and technology. Technology, we covered already as a key pillar of the Roadmap 2020, I will really focus on investment behavior and regulation. And I'm convinced if we address the undergoing fundamental change in the right way, we have strong opportunity to structurally grow our business. I know that many of you look at it as a very cyclical business, I will focus on our structural growth opportunities.
Before going into there, let me start with where do we come from. We have a very strong starting position. As Eurex, we are the leading venue for the euro yield curve and for the international benchmark indices with approximately 65% in international index business. More importantly, we have a very strong track record of innovation at Eurex, a legacy that is to be continued. I'm very proud that we have an exceptionally strong team that stands ready to further focus on growing our product base. Already now you see the product mix on this slide. We have approximately 10% coming from new products and services in our revenue base, something we want to further grow. The financial crisis has put clearing and risk management into spotlight.
Eurex stands out as being the one provider that is able to offer a full portfolio margining across all its asset classes of listed OTC and also repo, something that does allow us to offer unmatched capital efficiencies, very important. Also very important is our leadership in facilitating direct buy-side access. We can build there on the strong collateral capabilities of our Clearstream colleagues that you will hear later. Lastly, we have a very strong asset with T7 as our core trading engine. With that, let me go over into the secular growth drivers and our opportunities for exploiting transformational shift in the markets. The first game changer that I mentioned is investment behavior. We believe that the buy side will be a driving force shaping our business in the years to come.
Buy side will offer us the opportunity to complement the traditional role of the sell side on the derivatives side for us. It does allow also an opportunity to diversify our revenue base with more recurring flow, it is highly valuable flow for a market to trade on. The key driver for buy side is the growth of passive investments. Moody's already now projects that in 2024, passively managed investments will overtake actively managed assets, something that is an opportunity for us. It will drive the demand for international benchmarks. It will also drive demand for international benchmark derivatives. We can use the EURO STOXX product suite, which is a flagship global benchmark index, to exploit that opportunity.
We have pursued a strategy of building an ecosystem around that product, introducing volatility and dividend products, just lately, adding factor index products as well to that, something we will further drive. Also very important is the growing MSCI index family, as mentioned here as an example. We are very focused on having a strong position in that product. We have managed, over the past two years, to grow open interest by 700% to more than 2 million contracts, Eurex is now the leading venue and the number one in terms of open interest and product range for the MSCI index family. The second game changer that is crucial is regulation. Regulation drives the need for standardization and transparency and, most importantly, for efficiency. Balance sheet and cost pressure is affecting the buy and the sell side and drives demand also for listed derivatives.
You all have heard a lot about futurization, I'm sure, as a buzzword. Actually, Eurex was the first to successfully deliver an example with migrating the dividend swap space to being now a listed product suite. We have, a little over a year ago, delivered another example with launching a total return future that addresses the total return swaps market. That is something that we will further focus to build out into an entire product segment of single name and also collateral basket futures. Something that does give us the opportunity to attract OTC flow to our trading and clearing engine. Regulation also allows us to further diversify our market models. Eurex has launched, a while ago, an RFQ segment to complement the traditional order book called EnLight.
This is something that we will further drive, that will also open up opportunities for price and service differentiation, and addresses the need of electronification coming out from MiFID and other market reforms. Lastly on this slide here, regulation, of course, opens a significant opportunity in CCP clearing of OTC derivatives, and building a second liquidity pool in the wake of Brexit. For that topic, I would like to hand over to my colleague, Erik, to cover that. I thank you all for your attention, and I'm keen to have later on dialogue with all of you. Thank you very much.
Thank you very much, Thomas, and welcome from my side as well. I'm very glad to see many familiar faces. As many of you know, I'm with the group also for around 20 years, and I really like this company a lot. I think it's one of the strongest companies not only in Germany, but well beyond. When I started, there were roughly 1,000 people at Deutsche Börse, and it was very much a cash market-oriented business. I think what Theodor and Gregor presented today is a very different company than that I joined. Two years ago, I was asked to run the clearing business. I've been knowing Thomas for 20 years now, and I look forward to working with him, also in the future and making the derivatives part a real success. I think you've heard where we are strong, in derivatives.
Running the benchmarks for Europe on the equity and on the fixed income side in the listed derivatives, puts us in a very unique position. I think where we've been weaker is in the OTC derivatives field, and that's where the regulatory change is most imminent because the G20 decided after the Lehman event and the financial crisis, that it's a good idea to give CCPs a greater role. The mission is we need to build a strong OTC derivatives business. The question that occurs is, well, there is a guy who does OTC derivatives, and if you look at Dodd-Frank in the U.S. and EMIR in Europe, there seems to be just one guy where essentially all the activity in interest rate swaps is located today. There is a debate in the market, is two better than one?
Is it possible to establish a second liquidity pool and alternative liquidity pool? That's our strong belief at Deutsche Börse, and I think the ingredients you see on this page. Number one, Thomas, in his previous roles together with Andreas Preuss and our IT people, have built great technology. If you ask any client to compare what the U.S. CCPs have versus the European or the Asian CCPs, I think you will hear that the technology stack and the risk management systems are second to none and best in class. I think that's a great basis, but it's only a prerequisite. It's not a sufficient condition, but it's good to have that. Second, the market is used to be in control of these CCPs, of the CCP, that is established in the OTC market.
We had to sit down and say, "Are we prepared to let the clients participate in the economic success but also in the governance?" That's the term that you see on this page here, the partnership program. It's something we've launched just early in this year, which gives the market participants exactly that, economic participation in the success of what we will make in interest rate swaps on the one hand. Secondary governance participation. The top 5 participants will get a seat on the supervisory board of the CCP. The top 10 participants will be constituents of what we call the FICC Advisory Committee. All of that will be in place by mid-year, as far as the governance is concerned. Give it another 4 weeks or so.
Third ingredient and very important is we need to enable the middlemen to stand in between the fixed payers and the fixed receivers with a netted, with an efficient portfolio. It's no good if you have only clients from one end, i.e., asset managers. You also need the other side as a dealer to run a balanced portfolio. Our focus in connecting end clients is really on building that healthy ecosystem, and we think Europe has that healthy ecosystem because the largest issuers of euro-denominated debt would be the governments, these countries like Germany, the Netherlands, Italy, Spain, and others. On the other hand, you have people who can absorb these risks and who like to have those exposures.
That's why we believe there is a case to be made to have a second pool of liquidity, and I went through why we think we have the right ingredients in place. The second point I want to cover before going into then the commodity space with my colleague Peter, is where did we get to since January? Where we got to since January is we signed up 27 very international group of organizations to participate in the program. These will be the guys competing for the top 10 spots under the partnership program. Economic participation is available to whoever the top 10 are, and we will share the revenues on a monthly basis. We determine the ranking every month. After year 4, there will be a look back and we will perpetuate the economic participation.
It is virtual equity in a way that you are getting the economics and the governance, and it's available to the top 10 participants. Looking at the top 10 today, very pleased to see that there are large U.S. dealers in there. We've got a U.K. bank in there. We've got a French bank in there. We got German banks in there. It's a very well-diversified field that we see in just the first five months on who is active. Second point on this chart is we need to win share in the dealer-to-dealer space. If you look at the interest rate swap segment, there are three components. There is the FRAs, which is the short-dated business, three to six months. There is the overnight business, which is driven mostly by hedge funds. And then there is the traditional IRS, long-dated swaps, 10-year swaps.
We were successful in winning dealer-to-dealer business. Our market share stands at anywhere between 5% and 10% now with EUR 6.6 trillion in notional outstanding. The next stage will be to really connect the buy side to get that long-dated business. That's what we are working on. Finally, that we think the industry will foster competition and innovation through this step because then all of a sudden people will talk about how can I actually switch risk from one CCP to the other. Expect more to come on the innovation front from Deutsche Börse Group. To sum it up, we think two is better than one. It's better for the industry, it's better for clients, and of course, it's where regulators would like to go. Second, we are well on track on delivery.
We have seen revenues of EUR 5 million in Q1, EUR 20 million to EUR 25 million out of IRS clearing is a very realistic number for this year. With that, I'd like to stop. Thank you, and hand over to you, Peter.
Thank you very much, Erik. Good morning, everybody. My name is Peter Reitz, and I have about 25 years of experience in this company with some interruption. Started my first job, actually, with Deutsche Börse as an index guru, so to speak, developing new indexes, and worked on the data side, and then after an interruption, came back on the derivative side. I've been working on Eurex part for the last 15 years, and then the last six years, I was responsible for the commodity business, which we have summed up in the EEX Group of companies. I would like to introduce to you the growth opportunities that we see in the commodity business. Many of you may be familiar with the fact that commodities is a growth business, not only for Deutsche Börse Group, but globally.
We've been able to benefit from that by growing our commodity business in double-digit rates over the last 6 years. Maybe with the exception of last year. I'll come back to that in a minute. It's partly through acquisitions. There's been a consolidation going on in Europe and partly through organic growth. It's true for the various parts of commodities that we're active in today. If you look at the breakdown on the chart here, you see the 3 big business segments that contribute to our revenue being power spot, power derivatives, and the gas markets. Everything else we have covered here in other, the emissions being the biggest part of that. EEX started as a German-only power exchange, there have been 2 dimensions of growth. 1, diversification into new asset classes.
We added the gas business, we added the emissions business, and we have some smaller segments that we're currently growing as well. Secondly, regional growth. As I said, when I started to take over this business, we were mainly focused on Germany. Since then, we've expanded all across Europe and now also entered the U.S. market, the biggest energy market in the world, through our acquisition of Nodal Exchange. Our biggest segment, the power derivatives market, has 2 drivers of growth. 1 is a shift from the OTC market to the exchange and cleared world. Very similar to what Thomas described earlier on the Eurex side, we benefit from these trends. They're happening in all of the markets that we're active in, and they're happening at different speeds.
If we take our biggest market, the German power derivatives, we've seen an increase of sort of 5 percentage points per year over the last 5 years, a very consistent trend. There are other markets where this trend has been much faster. Italian power market, for example, we were at almost 0% in 2013, now we clear more than 80% of that market. That's one of the key drivers for growth. There's still a lot of growth opportunity in this because even today, more than 50% of all the trading happening in this market is still uncleared. The second dimension, as I said earlier, is regional expansion. We are now the market leader in Germany, France, Italy, Spain, and a couple of other smaller European markets. There are some other markets that we still grow into, like for example, the Dutch market.
As I said, with our acquisition of Nodal Exchange, we are now active in the biggest derivatives markets for power. The U.S. market, Nodal is the number 2 with about 20% market share in traded volume and about 30% of the open interest in power derivatives in the U.S. Our strategic imperative, as you see on this chart, is winning market share from the OTC market like we have done in the last couple of years and entering into new markets, applying what we're good at also in other parts of the world. On that journey, we're benefiting from synergies within Deutsche Börse Group because we're using the same technology that both Thomas and Erik talked about also for our commodity markets. We strongly believe that we can grow this commodity business within Deutsche Börse by more than 10% also over the next coming years.
I want to focus on five points where we see that growth coming from. If we look at the power market, OTC towards cleared will continue. We would just have an increased acknowledgement of risk. The counterparty risk, which didn't play a big role in the past, is more center stage these days. It will also come back to the German market once the split of the German-Austrian price zone, which will happen on the 1st of October this year, is over. Secondly, the same is true for the gas market. The value there in straight-through processing is helping us to win market share at the very short end of that market because what we do in both power and gas includes physical delivery, which is a big asset for those who want to hedge their positions.
We do have a very strong position in this very short end of the gas market. Third element in emissions, if we look at that, we are the auctioning platform for 27 European member states, and the market leader that we're challenging in the secondary trading is actually losing market share at the moment. We have a strong sales partnership with IncubEx, who is helping us to win market share also in the secondary market in emissions. In the first quarter this year, we have reached a market share of over 10% for the first time. Fourth element, Nodal, our U.S. subsidiary, is benefiting also from T7, our major trading system, which we're rolling out currently to build an order book market in the U.S.
Fifth, we're going to continue to nurture our smaller markets like the freight market and the agriculture markets, and are looking for new ones, like the trucking freight market we just announced. We want to continue our growth path that we have been able to accomplish in the last couple of years, also through acquisitions where they fit into our strategy. We're very ambitious growth targets, and we're confident that we can deliver on those. Thank you very much. Now I hand over to Carlo.
Thank you, Peter, for the introduction. Hello, everybody. It's a great pleasure for me today to share my enthusiasm about the FX market with you and what we are doing here. It's a particular day for us, as you heard, not only because I wear a tie, but because of the transaction that has just been announced, but let me come to that in a minute. My name is Carlo Kölzer. I'm running the FX business for Deutsche Börse Group. I'm with the company for two and a half years. I came here not by application, but by acquisition. This happened by Deutsche Börse buying 360T, a company that I founded in 2000 and was bought by Deutsche Börse in 2015, which is now the nucleus, I would say, of the FX activity of Deutsche Börse.
In the moment that Deutsche Börse bought 360T was a company with 220 people, EUR 63 million in revenues, people in 26 countries, customers in over 50 countries, 1,700 of them, and a daily trading volume of EUR 55 billion. From this nucleus, we had the clear goal to build more within other parts of Deutsche Börse, particularly Eurex. I would structure this now in a standalone development and the development what we did with Eurex. Some of you might ask, okay, what did these guys do for two and a half years? I have to admit one thing, to be integrated into a bigger organization comes with a certain effort that I've underestimated, I have to admit. For 2017, I can say it's a four, five, six year, 360T grew in revenues by 4%, in EBITDA by 5%, and ADV by 6%.
The opportunities for the standalone case are still very good because the market ethics in general is still growing. The electronification is still increasing or driven by regulatory changes, by transparency requirements and scale. Within that, there's even a flight from single bank systems to multi-dealer systems. Within the multi-dealer systems, we're even more competitive than some of our competitors. Overall, 360T is on a good track. We are, as we saw, on an ambition to double-digit grow, and we are in a good way. Far, we are on a nine-plus % growth trajectory for the year. Now, for the overall story in FX, together with Deutsche Börse, we founded a strategy at the point of acquisition that is very holistic, and we are executing that strategy ever since.
Part of it has to do that we complete the offering in the OTC market, which is part of 360T, namely an ECN offering and a central limit order book that we didn't have. On top of it, also adding FX futures, particularly also rolling spot futures, the EFP business, exchange for physical, and below that, an OTC clearing offering to also not only having the trading layer, but also the credit mitigation. We are working on that for two and a half years now, and 2018 is, let's say, also the year of the delivery. The ECN went live early this year. The CLOB went live two weeks ago. The futures, hopefully, the first trophy trade happens today. The OTC clearing offering for FX spot forwards swaps and cross-currency swaps is anticipated to go live in a couple of weeks.
We had really two and a half years of preparation and development, and now it's going live and execution. The overarching goal is to become a one-stop shop for this industry, where no matter what you trade in terms of instrument and in terms of geography or trading style, you can trade over the combination of Deutsche Börse/360T's offerings on an RFQ basis for very illiquid stuff or over futures for the very liquid stuff, plus supported this by the credit mitigation. Overall, our growth strategy is obviously based on growth with our customer base because the equation's obviously customer base times trading activity times brokerage. The clear goal is always to grow with our customer base. This is a structural growth. This is a secular growth component of our business, and this is doing also very well.
We add about 200 customers per year into that. The markets that we consider as growth markets are still the geographical growth into Asia, into the Americas, is the customer segmental growth into the institutional business, into the asset management business, and is obviously the product growth. As one component of this, I would also call the acquisition of GTX as a 100% fit and complementary acquisition to what we do in all these aspects. Number one, it's geographically more America-focused. 80% of the revenues are derived in the Americas. Our composition is different. In our composition, 15% of the revenues are derived from Americas. It's also in terms of the customer segments, we are a client-to-dealer platform. This is a more active markets, we call it, inter-dealer professionals amongst each other platform.
It's purely having spot business, so it's also from the product focus, a complementary acquisition. Overall, what you will see at the end of 2018 is a fully fledged FX offering in trading and clearing for this market. I think with this, we are industry leader. You also saw that the industry logic of the combination of an OTC platform and listed has been followed, has seen followers, Euronext, FastMatch, Cboe Hotspot, and now also lately CME NEX . I think we are very much and well prepared to become the market leader in FX in the future. Thank you very much. With this, I hand over to Hauke.
Welcome also from my side. Thank you very much, Carlo. My name is Hauke Stars. I'm member of the Executive Board of Deutsche Börse Group. Theodor also already introduced me. I've been on the board for five years now, and I'm responsible for our cash market business. I'm glad that I will also take over the HR responsibility and a special function as we have it in Germany called labor director. Let me give you today an overview of our cash market business. We're already there. In this business segment, we operate regulated markets for equities, ETFs, certificates, and many other products via three trading venues. Number one, Xetra, very well known. Number two, Börse Frankfurt, and number three, Tradegate Exchange.
Xetra is the most liquid place to trade German equities with a market share of 69% in DAX equities at the moment, and thus Xetra is the reference market for German equities globally. We have also with our Xetra trading place, the number one position in ETF trading in Europe. With our three trading venues, we have in Germany a very strong retail position, which makes us particularly unique and attractive for institutional clients. It was mentioned today already by Erik. He has been with the company for 20 years, and he said he started with this company when it was a cash business. That was the starting point of our company. From that business, many other businesses developed. Still today, the cash business is the starting point of our Deutsche Börse Group value chain, as I would call it.
Listing and trading of German equities and other securities trigger other businesses, other revenues in our company, like settlement and custody in the Clearstream segment or our index and data businesses. We work very closely together with my colleagues who are presenting here today as well to ensure that we provide a seamless service across our value chain to our customers. Then there's another component about this special business cash market, and that is the fact that this business plays a role that goes beyond revenue recognition, sorry, not recognition, revenue contribution. The cash market is somehow the face of Deutsche Börse, which we saw many times in the past. It is our market integrity, our way we act in this business that shapes public perception and the public reputation of our company.
The media use pictures of our trading floor and our logo, that gives an icon of the German economy as a total. To develop our business further and also to capture structural business opportunities, we implemented a number of initiatives over the past 2 years. Number 1, we migrated our technology to the already mentioned leading-edge next generation T7 trading technology. With this, we share synergies with Eurex that we can see also in customer acquisitions. We implemented a liquidity provider program, which incentivizes participants to provide liquidity, meaning passive orders at the top of the book, improving the order book size and quality. With our technology migration, we also implemented a number of functional improvements, which make us more attractive for our members. In addition, we developed our pre-IPO ecosystem further. We started the so-called Deutsche Börse Venture Network.
It's a platform where we bring together investors and growth companies. We prepare these companies for an IPO and lead them to us. We also renewed our market segmentation with a special segment scale focusing the German Mittelstand. These initiatives were instrumental to achieving the current market share in DAX equities of 69%. We recovered this position from below 60% in 2016, at the same time improved our best price probability from around 60% to now 83%, which makes us in a MiFID II environment, especially attractive to our members. On the common platform with Eurex, as I mentioned before, we share the technology, with this, we were able to acquire a number of new customers. In addition, our IPO initiatives are increasingly contributing to our IPO pipeline, which has nicely developed over the past 2 years, 2017 and now 2018.
In terms of revenue growth, we achieved in 2017, a 7% growth progressed nicely with 16% in Q1 2018. As I explained, the main drivers for this growth were gained market shares and DAX equities, new customers, on the other side, also increased volatility in the secondary market. On the primary market, we made progress with a very active IPO market, with IPOs from Siemens Healthineers, Deutsche Asset and Wealth Management, also members of our Deutsche Börse Venture Network and new exchange members from the German Mittelstand. When you look at the growth that we achieved, it's a combination of structural and cyclical components. According to most reports that many of you read and also talk about, the cash business is mostly driven by cyclical effects. That's right, there is an important cyclical component to this business.
We believe with the initiatives that we implemented and that we will further develop, we will achieve a 5% growth CAGR over the next years and in a combination of structural and cyclical components. The structural initiatives that we will drive over the coming years is, number 1, we will further develop our liquidity provider program. Currently, we apply this successful program only to DAX equities. We will extend this program or planning to extend this program to MDAX equities. We are expecting to be able to attract OTC trading volumes. As you all know, MiFID II became active beginning of this year, and with this, the trading obligation. After the first month, we believe that we will benefit further on from this regulation, especially on the equity side.
To benefit from this regulation on the ETF side, we will implement or launch a block trading functionality focusing on large and scale trading in the ETF market. Third initiative is, again, using our technology, the shared opportunity with Eurex together, winning new customers. We have a good pipeline and we can build on that. We will further nurture our IPO environment and our IPO business. New listings trigger additional trading volume, make our trading place even more attractive, and we have a very good pipeline of IPOs, potential IPOs with potential blue-chip spinoffs, companies from our Venture Network or from the German Mittelstand. With this, I would like to close and hand over to Phil.
Good morning, ladies and gentlemen. I'm Philip Brown. I'm with the company a mere 13 years. I have 25 years experience in the post-trade business. I'm glad for the opportunity to speak to you all today, and I want to try and shine some light into the Clearstream business for you. What I'm going to do is introduce the core custody and settlement business of Clearstream, and then my colleague Philippe will discuss the securities finance and investment funds business that we also have, which is very closely connected to the business I'm going to talk about. We're one of the largest securities depositories in the world. We hold around EUR 14 trillion of assets on behalf of our customers, and we transact millions of transactions each year on their behalf also. What we do is we manage industrial-scale, technology-dependent market infrastructure.
For the majority of the business we do, we are also exposed to very fierce competition and have been for our history. We operate two principal businesses. We have an international business, which we call Clearstream Bank Luxembourg. That's the business you'll know for the Eurobond business. In there, we hold about 40% of all Eurobonds in issue. We also run a business in Germany called Clearstream Bank Frankfurt, and that business holds 100% of all securities issued in Germany. It's also the largest CSD in Europe, measured by transaction turnover, and I think that's important when we talk about T2S in a moment. As you'll see from the chart, our business is primarily driven by custody fees. That's important because that's a stable base from which we can build wider client relationships. Typically, in the industry, custody relationships are long-term in nature.
They have an average life of about seven years, they enable you to upsell and cross-sell other services to those institutional clients. As you'll hear shortly from my colleague Philippe, when he presents our investment funds and GSF business, that's a very important feature of our growth story. In fact, if we look at our top 20 clients, 16 of them take all three of the post-trade services that Deutsche Börse offers. You'll also be aware of the strong banking business we operate which stands to benefit positively, as Gregor said, from the expected rising interest rate environment. Cash balances, which we hold on behalf of our customers, which are very well diversified across the customer base, are more than double the level we experienced before the Lehman crisis. The Clearstream business is a very international business.
We look after more or less 2,500 clients who operate in more than 110 countries around the world, they're serviced by expert staff who are local to the clients, who are culturally and linguistically aligned with them. It's very important in our business, which is exposed to competition, because it's very much a service-driven business. When we look at the various industry surveys or customer satisfaction and engagement surveys that we engage in, we are consistently ranking higher than our competition in that measure. As you're all aware, the post-financial crisis environment has focused very much on the benefits that can be brought to the financial system by greater use of market infrastructures, the CSD businesses we run are a case in point. We're not immune from the regulation.
We've had impacts from it, and our clients certainly have had impacts from it, from regulation like EMIR and Dodd-Frank, from TARGET2-Securities, and from now, the new CSD regulation. What we've done is invested significantly in developing services to help our clients comply with and continue to function profitably within these new regulations. They also enable our clients to use us as a one-stop shop for a variety of services that they need. Our aim is to grow the business through a combination of the acquisition of new markets for new mandates from existing clients and via business from totally new clients, whilst leveraging our global footprint to benefit from some of the growth in the emerging economies around the world. To give you an example of that, by way of example, our North Asian business grew by more than 20% in 2017.
We have a very strong franchise in Asia. With that, let me share with you some of our planned secular growth initiatives. The most significant project in the post-trade world in the last decade has been a project called TARGET2-Securities, or what we call T2S. It's a project owned and operated by the ECB and the Eurosystem of central banks. The concept of the project is the takeover or the taking in of the settlement infrastructure of the CSDs of Europe by the Eurosystem. It creates, critically, a single settlement environment for European security settlement. Now, we embraced T2S quite early on because we saw it as a very useful tool to unlock some of the market's inertia in terms of its decisions to change supplier.
We were the first company to recognize that there's a direct connection between T2S and the ability to create a regional custody platform using T2S, then an ability to also mobilize collateral and create a single point of liquidity and funding for banks. All of which is extraordinarily relevant in the post-crisis environment where capital and collateral are much more important. We went live on the platform in February of last year, and we went live with our first cross-border links in quarter one of this year. Right now, we can offer 80% of Eurozone custody and settlement markets through the platform, and we'll be rolling out the service further in the course of this year and next. We expect growth to come from clients deciding to centralize their assets that they already hold in the T2S markets on their Clearstream accounts.
Our first client win, which is a global broker-dealer with whom we're currently in implementation mode, will transfer more or less EUR 100 billion of assets to us over the course of the next 12-18 months. Even in our traditional Eurobond custody business, which is not typically aligned with T2S and has lost ground, in fact, to the domestic bond markets since the crisis because governments have been the main issuers and governments do not issue in the Euro markets typically. We expect quite some change due to some recently clarified rules around T2S. Principally, that the Eurosystem will require the T2S platform to be used for Eurosystem financing operations irrespective of the asset that's used. That means we think there's going to be a drag of Eurobonds into the T2S platform.
Thankfully, when we designed our model, we designed it with the Eurosystem and with the Bundesbank and the ECB so that it could accommodate Eurobonds. Finally, the CSDR changes will change the credit provision from the CSDs and ICSDs in Europe towards the banks. Because T2S uses credit in a different way and also uses credit from the central banks, it's more beneficial in many senses. Therefore, we expect CSDR to also have a positive impact on the T2S utilization by the banks. That was T2S, but of course, we're also working with our colleagues in Deutsche Börse to support mutual clients who wish to use their Clearstream custody accounts to pledge collateral to Eurex's new OTC IRS service. Clients tell us they really appreciate their ability to internalize these two functions in a single operational flow within Deutsche Börse.
What most people don't know is that we also operate from our ICSD connections into more than 50 global marketplaces. Our clients really value the ability to access those global markets through us, and we hold hundreds of billions of assets in markets like the U.S. and Japan, Australia, France, Italy, Germany, et cetera, which are not Eurobonds. We're constantly seeking opportunity to expand this network. We've recently added Georgia and Armenia, and we'll soon add Ukraine and Kazakhstan to this. We developed these latest links in close cooperation with the central banks and ministries of finance of these countries. They really appreciate our help in bringing our 2,500 international investors into their bond markets. It creates a lot of opportunities for us to work with those economies also. We're also working closely on opening up the Chinese bond market.
As many of you will know, it's a EUR 10 trillion bond market, but it has less than 2% international investors in it today. We're looking at an all-weather solution to get clients into that market as the Chinese bonds start to enter some of the global bond indices, which will happen in the next 12 months. With these initiatives and with a relentless drive to win wallet share from our client base, we expect our net revenues to grow in the 5%-10% range, as we said. This compares with an industry-projected growth rate of 3%, according to McKinsey Research, which was published in March of this year. In 2008 so far, we're currently slightly above the middle of our projected growth range. With that's the Clearstream business.
I'd now like to hand over to my colleague Philippe, who will walk you through the IFS and GSF businesses. Thank you.
Good morning, ladies and gentlemen. Thank you, Phil, for the Clearstream presentation. I'm Philippe Seyll. I've been short of 14 years at Deutsche Börse Clearstream. In terms of relationship, the relationship with Phil has more than 14 years since Phil and I have been working for the best part of 20 years together. We used to work at a large global custodian here in London together. I'm Philippe Seyll. I joined the company 14 years ago, as I said. What I've been doing since then is that I've been building, as you heard from my colleagues on the left-hand side here, that I've been building IFS. That is something that I've been doing for the best part of 14 years.
One thing that I've been as well doing is that I was asked three years ago to take over GSF, and that's what I plan to talk to you about now, both GSF and IFS. GSF first. GSF stands for Global Securities Financing. It has two business lines. The first one is global collateral management, where we collateralize exposures created among financial institutions, and we provide securities lending services to financial institutions. First, collateral management. We do provide collateral management services for over 700 worldwide financial institutions. We mainly cover exposures that arise from uncleared and cleared repo business. Of course, those businesses, the repo business, is correlated to the, especially in Europe, to the European Central Bank monetary policy. Which means that if interest rates get low or get depressed by the European Central Bank, the repo business get depressed.
Of course, we are correlated to that market, and that is what we're facing today. We keep the revenue afloat by innovative solutions, but growing that business presently is rather hard. We believe, and I think that Gregor covered that in his presentation, that we believe that when interest rates do come back in the, I would say, the normal zone, the possibility for us to reap this or to accompany that growth and growing the business is high. The securities landscape is totally different here. Although we are correlated to market, obviously, but we are positively correlated to the European Central Bank decisions, namely the quantitative easing business. So quantitative easing withdraw assets from the market, and those that actually have these assets to lend out can actually benefit from a quantitative easing, and that's what our clients have been benefiting from on our books and record.
This business is definitely going in the right direction. It's definitely growing. Strategy for these two products. We believe that on the collateral management side, as my colleagues, Erik and Thomas, have already alluded to, the EMIR is wind in our sail. That piece of regulation forces financial institution active in OTC derivative to segregate assets and put initial margin and variation margin on a segregated basis. We are a collateral manager. We have developed that feature. We're going to benefit from those trends. We will focus on buy-side institution, because buy-sides, more and more firms, more and more go to the capital market directly and need to cover their exposures. We have a collateral management system. When the conditions get better, we are sure that we will benefit from that. And last but not least, we recently invested in a fintech company called HQLAX.
We announced that a couple of weeks ago. The aim there is to try to come up with a blockchain-based solution to support one of the major issue that the market is facing, collateral dispersion. I can come back to that in the question section if you want. On the Investment Fund Services side, we are a growing business in a growing market. We've seen, as Gregor has showed in his presentation, a 15% CAGR growth in the past five years, and we believe that the business in 2018 will follow the same pattern. What do we do? We provide fund execution, fund custody, and we do provide fund execution and custody to some 600 clients on the worldwide basis. We execute trades in mutual funds and ETFs, and as Hauke already mentioned and some others in the presentation, there is a big move from actively managing to passively manage.
We've built a solution to cater for ETFs, and we are seeing now the benefit of it. This side of the business is growing fast. Another thing that we have done four years ago is to acquire the business of the hedge fund trading business, or the trading business into hedge fund of Citco. The business is now converted into the business. If you put into our business, if you put mutual fund, hedge funds, and ETFs on the shelf, you have a full shop that distributors on a worldwide basis benefit from. And we see now the trend that keeps on continuing, as in we keep on winning new business based on this new service provision. The strategy. Going forward, how are we going to grow this business at the IFS business?
You've seen that Gregor has put on his slide that we have some ambitious growth for that business. Frankly, I stand before you here, I don't think that I see any issue with that ambitious growth. We have a solid pipeline of business that we are busy in converting, and we believe that the trend that we've seen in financial institutions of not taking care of themselves anymore of those businesses, i.e., the fund execution. The execution in the fund business continue and probably accelerate. It's becoming more and more non-core business, and we see that going forward, we'll keep on benefiting from that trend that is happening on the market. Strategically, what we need to do is to keep on increasing the funds on the platform, namely in two areas, ETFs, where we don't have yet the full ETF scope, and secondly, in some regions.
i.e., if since we sell more and more to the Asian market, we need to develop further in providing access to the Asian funds, and that's what we are busy doing. Last but not least, as you've seen in the slide of Gregor, we announced that four weeks ago that we have acquired the business of Swisscanto Fund Centre. What we are trying to do there is to replicate, to position ourselves in the same way we've been positioning ourselves on the fund execution side, but for the fund intermediation, which is another word for what we call trailer fee or computation of trailer fees in the fund distribution business. We see a similar trend in that business as the one we see for the fund trade execution, I'm sure that we'll benefit from those trends.
With that, I leave it now to Holger, who's the last one of the business head presentation segment. Holger, the floor is yours.
Good morning, or almost good lunchtime, I have to say so. Thank you, Philippe, and thank you for all of the preceding speakers for providing me with great data assets to monetize and commercialize. You're the basis of my businesses. I represent the pre-trade businesses of Deutsche Börse. My name is Holger Wohlenberg. I joined, as Philippe, 14 years ago. In these businesses, we deliver data to the increasingly automated and digital workflows of our capital market participants. The first segment, data, caters more to the trading workflows, whereas the index business is more in the investor sphere. Both are very attractive businesses. They address non-traditional exchange clients as the buy side, and also they are highly recurring revenues.
In both businesses, we enjoy our recurring revenue rates of north of 90%, and the EBITDA margins are the usual ones that you know from our rest of the exchange businesses, so highly scalable businesses. Let me begin with the data business. In the data business, and you all know that, typically it all starts with streaming order book data to vendor terminals. In the meantime, our data business has grown into becoming more of a global production and distribution network, which connects to more than 4,500 institutions. We do that directly or indirectly through about 550 connected vendors. We're not limited to put our data into terminals, but we are catering directly to the workflow. We are embedded. We feed the engines of our clients with digital, so to speak, food.
That could be pricing engines, that could be trading algos, that could be risk engines or whatever. We also do not only have our own data sets, Deutsche Börse assets on that platform, but we also have pre to post trade data assets being present on that platform. Which could be index data, the market indices, iBoxx, et cetera, could be data from other exchanges, our partner exchanges mainly, Irish Stock Exchange, Bulgarian Stock Exchange, et cetera, or the local exchanges in Germany, to post-trade data. You can also find the WM data sets, ICE, IBA data , and Reuters data sets on that platform.
These data assets combined with the data sets, so from clients and from the partners, enable us with basically entering a lot of new opportunities to go up the value basically by adding advanced analytics on top of that data lake or even data-driven or analytical services. In case we're not able to broadcast them to a broader public, we can make that intelligence available in a one-to-one setting to our clients. First service example is our regulatory reporting service that we launched in January with MiFID and MiFIR services. You see already, we have a nice 11% of the data revenues already come from that regulatory service branch. I have to say that the external data sets that we basically sell also account for like 22% of that stuff already. We start using our data footprint to go more into analytics and services.
Therefore, we see, basically we're confident that we can deliver into the secular growth rates that Theodor and Gregor have mentioned. If you look at basically our growth rates there, last years were not very shiny because we had to basically get rid of a couple of underperforming businesses like MNI, our news business. Now we are ready to reignite growth. We will do that basically, A, to monetize yet untapped assets. We will start putting telemetric data out like timestamps, or we will put out post-trade data. We will, as said, get into more advanced analytics, combining our data sets with the data sets of external guys and clients. We have about 14 data scientists permanently browsing for new opportunities and use cases in that analytics sphere, liquidity, volatility predictions, all that kind of nice stuff.
We will obviously complement our interactive services footprint by adding additional regulations and additional services to the regulatory reporting hub and other services based on the analytics. Let me now turn to the index side of the equation. On the index side, we are a provider of rules-based quantitative investment strategies to issuers and investors. We focus on investment solutions rather than broader benchmarking families. That's why we calculate 12,700 indices, not six-digit number of indices. We do have global and multi-asset coverage. We have collected about EUR 140 billion in assets from institutional clients, of which 117 are ETFs. The biggest contributor of this is obviously our EURO STOXX 50, which is the number 1 tradable index in Europe also thanks to obviously Eurex as a tremendous platform for that product. By revenue, we are number 2 in Europe, and number 4 globally.
Despite that, I would say medium-sized because the top three are a bit bigger than us. We nevertheless have similar margins and similar profitability, and we think we're fully competitive. Why is that? A, our products are designed for tradability, so we can basically monetize them across multiple use cases and licenses. You can monetize them as exchange licenses, ETF licenses, structure products, trading licenses, data licenses. That enables you to actually tap a lot of different revenue streams, which you can see on the upper right, and are fairly well balanced across these different licenses. Two, our business greatly profits and benefits from the partnership to in-house listing venues like Xetra, but also to Eurex. It's enormously powerful if you can launch a future together with an index. That basically made the EURO STOXX 50 what it is.
We can see that with the new stuff, too, like with the factor futures that Thomas already mentioned. Three, we are an award-winning innovator. We always are very ahead, basically, in the curve to come up with new themes, strategies and stuff, which normally is priced at a higher price point or a premium. As a solution provider STOXX is very flexible. We can take the methodology and the data source, which is basically the best for the purpose of investing in that specific domain. Our clients get the best solution for that purpose. Which puts us in the perfect position to basically capture that growth from active to passive. What do we do in order to deliver our double-digit secular growth rates and continue on that path that you can see down there?
We will install new dedicated coverage teams on the buy side, where we are underrepresented. Two, we will place ourselves in the investment decision process by providing tools that connect us directly or connect the investment decision-makers directly to index design and the factory that we have. We will also use partnerships for that. Three, we will increase our development capacity to come up with all these nice little nifty themes and strategies, where we have a lot of mega themes out there, like impact investing, ESG, et cetera. We will also work with data partners and external data sources to help us to cover that broad sphere, as we did with Amenity Analytics on artificial intelligence indices or RiskFirst on the LDI index family we just launched.
Finally, we also will cater to the need of self-indexes by increasing our offshore capacities so we can deliver bulk issuing of indices at competitive prices. With all that, we're confident to basically deliver the growth that we promised here. That concludes our deep dives. Now I have to hand back to Theodor, I guess.
Thank you, Holger. This is a perfect example of German discipline. We are exactly one minute ahead. Sorry for that. I'd like to conclude with a short statement from my side. You've seen now the three years roadmap, which we are going to pursue, I think I don't want to repeat the stuff here. You're smart enough to understand. I'd like to interlink this with my own CEO roadmap of the year 2018. Right? If I go through, I basically developed a plan of 10 issues which I wanted to address, these 10 issues are, in summary: firstly, I wanted to increase the transparency, we went out to go for the nine segments. It's more transparency for you. It's more pressure for those guys sitting in the first row. That was the first point. Second point on my list was appointing strong segment heads.
Do your own judgment after today's presentation and Q&A. Third, I wanted to create a new ExCo structure, new governance structure, with strong ExCo members. I also wanted to do quick wins on the governance side. I think we changed a couple of positions rightly so. Point number four, I reviewed the secular growth opportunities, which were already in Deutsche Börse when I arrived, I challenged them, we discussed it internally. We figured out that we have even more than I thought when I started at Deutsche Börse. I figured out that we have better secular opportunities than I thought we would have, therefore we increased from 4% to the famous 5%. In this regard, point number five, I changed the guidance. I went from an overall guidance concept to a secular growth guidance concept because this is in our hands.
In this regard, I also leave it up to you to do your own math and to run your own models on the cyclical side. Basically, we tell you we have two drivers, net interest rate development, and second, the VOLA. You should run your models. We have given you a certain bandwidth you can work with. Point number six, we launched a structural cost program in order to demonstrate that even if you are in a very nicely growing business, you should not forget to also address cost issues, which will not turn the needle from your point of view and from my point of view. It's rather a means that we demonstrate that we are good in managing a business. We've done our homeworks on progress, Euro clearing, what we have heard today, point number seven. Point number eight, we've done two add-on M&As.
Point number nine, I think we demonstrated a lot, or we worked a lot to demonstrate to you that technology might be in a three to five years horizon, a very big thing, but you cannot wait. You need to do it now. You need to save money now in order to invest in technology. Last but not least, point 10, I wanted to reestablish trust and confidence into our own team and in the senior team and for our employees after the failed merger with LSE, this was on my list. If you go through, I think it fits quite nicely. It's a lot to do, as you can imagine. We need to constantly grow. We need to demonstrate that we grow on the secular side. We need to deliver on the M&A side.
We need to deliver to increase the multiple delta, which is still existing, as you know. All I can say, this is on the last page, that I myself, the senior management, and as you mentioned, we are dedicated and focused to delivering what we have presented today. Targets are strengthened and confirmed, it's partly, of course, stemming from a hopefully continued nice development on the cyclical side. With that, I go to the very last presentation slide. More than 5% secular net revenue growth, 10%-15% net profit growth, the EUR 100 million structural cost. With this, I close the presentation and open the floor for your questions. Thank you very much.
If you would like to ask a question, please raise your hands. We have microphones in the room. For the benefit of the audience here in the room and on the internet, please do state your name and company. We also kindly ask you to limit your questions to one at a time to allow for broader participation. I saw a first question here, Owen Jones.
Hi. Thank you. Good afternoon. It's Owen Jones from Citigroup. The one question I'll kick off with. You mentioned the valuation discount that you're conscious of. I'd just be keen to understand maybe how you plan to achieve this. I guess your shareholders in the room will be very happy to hear you talk about this, maybe from a sell side perspective, you have to question how you plan to achieve this. Maybe if you could perhaps tailor it to one specific aspect within the strategy that you've laid out today. Thank you.
I think we are living with a certain rucksack, not a great track record on the M&A side. If you ask me to focus on one, I think we need to demonstrate successful M&A add-on additions. We need to demonstrate that we can integrate a business and can demonstrate improve the synergy cases.
Johannes Thormann on my left-hand side.
Johannes Thormann, HSBC. My question would be on TARGET2-Securities. You talked about the first broker-dealer is migrating. Could you elaborate a bit more on the pipeline? What are you seeing, how many other banks, broker-dealers, or whatever are in talks to migrate their assets? Could you comment on the volume and potential milestones which need to be achieved after T2S is now fully operational? What are the risks to this business if ECB decides in 2019 to change the pricing would this endanger further migration? Thank you.
It's rather a chance than a risk, I presume. Phil, please.
Is that on? I'll deal with the last question first on the pricing. The way we've structured our pricing is to treat the ECB pricing as an add-on to our fees. It's a variable number within our fees. I don't think that's going to change anything in the way that people do or don't buy the service, but it enables some transparency for our customers to understand what they're paying for to us for the services we add versus what they pay to the Eurosystem for the settlement service. In terms of the pipeline, the largest opportunity is the one I mentioned. We also have a German organization who's relatively large, that is not public yet, that we're close to closing on, and we've got about 10 or so smaller mid-market European banks who've committed to move to us.
The prerequisite for all of this is that we deliver all of the markets because people want to be able to use it as a one-stop shop. We expect the pipeline to ramp up into 2019 because that's when the markets all come on board. Brexit is a clear impact from two angles on this. For the first angle being, that people are very consumed with Brexit and a lot of the large-scale business is London-based, the London-based broker-dealers would be the big users of the service. They're trying to figure out what their Brexit strategy is. The reason we feel good about it is that Frankfurt is seemingly going to become a significant location for Brexit relocation for businesses that choose to relocate, and we think that plays well into our whole T2S story and our relationship with the Bundesbank.
Philip Middleton on my left-hand side.
Thank you. I wonder if you could say a little bit more about how you're approaching the sort of AI, RPA type agenda, because I think that's a very interesting one across finance. Maybe you could talk concretely about where you think that sort of technology set will impact your business.
I didn't get the first part of the question. I was understanding that you were trying to figure out a little bit more on the material side, on the technology. In which part was it?
AI.
AI. Sorry. Okay. On the AI side, support me and jump in, please, Gregor. The situation is that on the AI side, you apply certain processes, especially in the support functions, in the operational functions of our business. We are primarily, as I said, a technology-driven company, but nevertheless, we have huge operations where we work. It starts from the CFO side, if I may say so, and it ends up in the operation side of the post-trade business. We go through all the various processes, and there we apply, we figure out where is the best payback. Normally the payback is tremendously for all the AI stuff. In addition, it goes even into the data side where we are working with AI companies together in order to identify AI-driven partnerships for even indices. A very broad spectrum.
Arnaud Giblat, on my right-hand side.
Yeah, good afternoon. It's Arnaud Giblat from Exane. A quick question on M&A. It's good to hear that you've put in place harder financial hurdles for M&A. You're talking about 10% ROIC over three to five years. I'm wondering how that fits in with the current pipeline of potential deals. I mean, a lot of the deals are done at 20 times plus EBIT, so that implies necessary high synergies to be able to achieve those kinds of targets. How are you thinking, how are you seeing the pipeline there? Secondly, on M&A, it sounds like your AA rating is something that's going to hold. What sort of firepower do you have? I'm assuming here that you definitely want to keep your AA rating at the corporate level. Thank you.
Thank you for the question, Arnaud. There were effectively two questions. Firstly, on the M&A side, the pipeline and the ROIC. Firstly, I would like to mention that the most recent one, which we announced this morning, you can be assured that we didn't overpay. We didn't buy the full business of GTX. We bought the ECN businesses out of it, and it matched perfectly with our target. We need to be careful not to overpay. We know it. Having said so, historically, it was always dominant to buy when you see a strong strategic rationale for it. I know we need to be very careful not to overpay. There are some assets out there I would love to get, which are already now by far too expensive. It is a fine line which we have to march on here.
Quite frankly, in all the auction processes where somebody wants to sell it at a peak, it's probably difficult to enter into expensive auction processes if they go beyond a certain size. This goes directly together with your second question. Our firepower is in the range of EUR 1 billion-EUR 1.3 billion. That's the organic firepower, given our cash flow position.
Anil, on my right-hand side.
Anil. Thank you.
Oh, hi. Anil Sharma from Morgan Stanley. I've got a couple of questions on 360T. I'm just curious, given you mentioned you wanted to be a one-stop shop for the FX industry, a lot of your competitors have the same ambition, particularly CME and Blackstone with Thomson Reuters now. I'm curious as to what does 360T really have as a competitive advantage versus those guys? Secondly, why is it not just going to be a race to the bottom on prices in that industry?
Hello? Yeah, thanks for your question. Two questions again. Number one, I think we are the first ones two and a half years ago that started to work on that strategy. As I said, we come to life with all this, because we have the combination of the OTC platform, 360T, and Eurex. Eurex, I mean here the trading component of it that facilitate the futures, the rolling spot future and the EFP. On the other hand, the OTC clearing capability and listed clearing capability. The combination to offer listed and OTC trading in all aspects and the bridge, plus the clearing, I didn't see somebody else have that. This for the full product range. The race to the bottom in pricing.
In all fairness, I didn't feel that race to the bottom has continued much over the, I would say, last 24 months. I think there was a point coming where people realized that if you want to use reliable technology that is highly regulated and resilient, it has a certain price. If you Yeah.
On my right-hand side, third row.
Hello, my name's Angel from Blue Dragon Global Investors. Another question on T2S. You have guided to 5%-10% growth in the Clearstream business. You've also said that industry growth is 3%. What does that imply in your ICSD market share and CSD market share by 2020?
On the CSD side, we have 100% market share in Germany today. We will expect to pick up some of the cross-border business that goes into the European markets, but a lot of the European markets is domestic to domestic business. The T2S strategy for us is intrinsically linked with the rest of our strategy, which clients want to centralize more and more of their business on us. It's not just their T2S assets, but their other assets as well. Some of our growth will come from our strong banking business, which is built into that 5%-10% number. As I said, we hold significantly large balances relative to what we had pre-crisis. Our NII is significantly below what we had pre-crisis because of the interest rate environment.
There's a tailwind there when interest rates come back. Also our growth will come from the extension of markets. About a quarter of our assets under custody today are neither Eurobonds nor domestic German bonds. They're in the domestic markets, which I mentioned. That will also drive a lot of our growth. When we talk about markets like Ukraine and Kazakhstan and Armenia, Georgia, China, these kind of emerging market opportunities that we see, we find that many of our clients want to increasingly centralize their assets, not just Eurobonds and domestic German bonds, but global assets with us, for all of those collateral reasons that Philippe talked about. They want to be able to use a single pool of collateral across the whole planet and mobilize that against the venues where they need collateral.
We see a lot of extension into new markets or new markets for existing clients. It's kind of a difficult question to answer because it's not either T2S or Eurobonds or the other. It's the whole picture of the Clearstream ecosystem which drives that 5%-10% growth. I hope that answers your question. I'm sorry. They are ICSD-based, but I would make the distinction in the ICSD between the Eurobond business and the non-Eurobond business, both of which sit inside the ICSD franchise.
Martin Price.
Martin Price from Credit Suisse. If I think back to the 2014 Investor Day, I think you ended up delivering about 40% of the structural growth last year that you were targeting back then. I would just be interested to know what lessons have you learned from that experience, and what do you hope to do better in future that gives you more confidence in delivering the EUR 500 million by 2020?
Yeah. As you rightly said, we delivered over the last three years some 4% on the structural growth basis. That was a little bit below our ambition level. The main reason here for is that we have seen some delays in regulation. For instance, the OTC interest rate swap business, so originally we thought it would come earlier. There was a delay of roughly two years in the industry. Dodd-Frank Act already implemented five years ago. In Europe, it's just two years ago where we started with that business, and that's the main reason why we have here basically a delay of one or two years.
From an outside perspective coming in later, it's very clear we were so much focused on the LSE deal, right? That the whole organization was pretty much working towards this direction, therefore we were a little bit distracted.
Jochen Schmitt.
Thank you. It's Jochen Schmitt from Metzler. I have just one question on adjusted costs. How many cost adjustments do you expect in the medium term apart from the EUR 200 million restructuring cost, which you guided for your 2020 cost efficiency program?
Obviously, these one-timers, we do not really plan. We gave you some guidance for this year where we said there's roughly EUR 80 million one-time cost. These EUR 80 million, that does not include the EUR 200 we addressed here. This EUR 80 million basically addresses some litigation costs where we are in the second category, continuous improvement measures. This will be now replaced by our structural program. The third element are M&A-related costs, where we say we have some efforts to do the integration of our M&A elements. Whether this EUR 80 million is now a good number for the next year, I think that's difficult to judge. Nevertheless, my expectation is that we will have some kind of one-time cost in all of these three dimensions also for the next years.
Kyle Voigt on my right-hand side, please.
Thanks. Kyle Voigt with KBW. Just one question, follow-up on the first question that was asked on kind of bridging the valuation gap. You talked about some of the parts type valuation on your business. One of your U.S. peers is also kind of remixing their business through M&A, which you cited as being a key point for how you're going to bridge the valuation gap. They're also remixing their business through divestitures. Just wondering if that would be in the cards for you as well, or if you're happy with your suite of businesses that you have today. Second question, if I could, is just on your competitor to Clearstream, at least in the Eurobond business, Euroclear.
Obviously, ICE has taken a 10% plus stake in that business. The dealer ownership is, if that continues to become lower over the next several years, just wondering how you think that impacts the competitive dynamics in that industry. Thank you.
Thank you, Kyle. On the topic of divestitures, we do not envisage and we do not plan for any kind of divestitures. We have done some in the past, in the more recent past. Nothing is on our plate right now, which we want to do apart from smaller stuff where we have invested on the venture side. If you want to do some smart divestitures there, we can do, on the strategic side, there's nothing on the plate. I know, I think you asked the question before, I'm realizing that we do want to keep the AA rating on the Clearstream side. Yeah, to be very clear about it. Nothing is currently planned on the divestiture side and on the Euroclear side.
It's very clear on the Euroclear side, it's very clear we have to structure, as we are having them, they have a different structure. Currently, we think we are much more innovative, right, in our product and service offering, right? With this regard, we think we should focus on our business initiatives, on our product initiatives. That is what is in our focus.
Owen Jones on my right-hand side again.
Hi. On slide 16, you set out the four areas that you see as being key for your technology stack in the future. The last time I checked, you had a fintech hub. I was just wondering how that fits into this plan. Is that likely to be protected from the cuts? Do you have anything within the hub that fits within this suite specifically, that you see as being likely to be brought into the group infrastructure going forward?
Yeah, thank you very much for this question. The fintech hub is part of our Deutsche Börse Venture Network, where we're nurturing a platform and a group of investors and growth companies. The primary target of this initiative was helping companies, growth companies to prepare for IPO and then lead them to us. The nice side effect is that our teams, our people are working with these startup companies. We have a spillover effect to our DB1 Ventures. All these initiatives are playing nicely together, and helping us to stay innovative and capture innovations for our own companies, but also drive our business.
Ready for lunch then?
Johannes Thormann.
Hi, Johannes.
One question on my side for the traditional Eurex business of single equity derivatives, which has probably been hit by the Cum-Ex problems in Germany and has declined massively over the last years. We saw a rebound, which was far stronger than other European markets in 2018 so far. Any fundamental reasons behind it? How would you explain this? Thank you.
Yeah, let me speak to that. We see that really as a complementary product that is very much driven by, of course, dividends. We have seen a migration of that business also to the single dividend futures over the past years. Let me also say that economically it is not a very significant product for Eurex because it follows another pricing logic. It is a total off-book business. We do believe that the driver here is that we have a full portfolio. We have diversified over other European titles. It is just a small part of it that is not really stemming from German. It is very much driven by dividend activity. We will further expand it to other European segments.
Roland Fender on my left-hand side, please.
Thanks. Within your weaknesses, you mentioned the field of fixed income. Are there any plans to grow organically in whatever business area you might focus to, or is it more an M&A type of solution you are looking for? Thanks.
The first part on the M&A side, I would like to respond by myself. We tried to get something done last year. We failed this year because we felt that the deal which we were structuring was not good enough for us. Therefore, we didn't do it. It was a fixed income deal, which I personally pulled because it was not good enough for us. Yeah. Point number 1. With regards to the fixed income side, why don't you on the Eurex side respond to what we are doing actually. Erik, please.
Thank you. I think when you look at our coverage of FX, sorry, of the fixed income world, Thomas and I mentioned that we have a very strong underlying rates derivatives business. What you have seen since the financial crisis that on top of the Bund, Bobl, Schatz , so the German reference rate which has morphed into becoming the European reference rate over the last 20 years or so. We diversified into the Italian markets, BTPs, obviously, we've seen strong volumes last year, records over the last few weeks, very obvious. We have put out a very successful derivative product on the French OATs, but also now on the BONO. We've completed our universe on the listed side. On the OTC side, it's really key to complement that with IRS because of the cross-margining we are offering.
The third complex that we have is the repo business. A lot of these, if you think about hedge funds and how they think about the world and their trading strategies, a lot of the refinancing is done through repos. We have a thriving repo business as well, both on the trading and clearing side. I think it's attractive. Cash bonds is a different question and needs different formats.
Christoph Blieffert .
Christoph Blieffert , Commerzbank. We have seen a significant tightening of the bid-offer spreads for clearing at Eurex OTC after the start of the partnership program. The question is, when do we expect client clearing to kick in? Related to that, we have the category 3 clearing obligation next year. What is the revenue potential for the industry?
Thank you very much. Indeed, one of the metrics that we didn't show in the presentation but that are really key is for the first time, there is a equal pricing, a similar spread by more than 10 banks with the dealer market who are quoting these prices for an Eurex clearing versus an LCH cleared swap. That brings for the first time that choice to the buy side. If you look at our client base, we have roughly 130 end clients connected right now. The comparable number for our U.K. competitor would be around 700 legal entities. Especially those on the continent tier, those end clients usually have one pipe today into one CCP, so they need to build a second pipe.
That's what we expect to happen over the next 6-12 months to see more people connecting to this alternative offer because the pricing is now agnostic between the two CCPs.
Obviously, there are no further question. I'd like to invite you to have lunch together with us, and I ensure you this lunch is not part of the structural cost reduction program. Thank you very much, guys.