12th largest stock exchange by market capitalization
The
Frankfurt Stock Exchange
(German:
Borse Frankfurt
, former German name:
Frankfurter Wertpapierborse
,
FWB
) is the world's 3rd oldest and 12th largest
stock exchange
by
market capitalization
.
[2]
It has operations from 8:00 am to 10:00 pm (
German time
).
[3]
Organisation
[
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]
Located in
Frankfurt
, Germany, the Frankfurt Stock Exchange is owned and operated by
Deutsche Borse AG
and Borse Frankfurt Zertifikate AG. It is located in the district of
Innenstadt
and within the central business district known as
Bankenviertel
.
[2]
With 90 percent of its turnover generated in Germany, namely at the two trading venues
Xetra
and Borse Frankfurt, the Frankfurt Stock Exchange is the largest of the seven regional securities exchanges in Germany.
[2]
The trading indices are
DAX
, DAXplus,
CDAX
, DivDAX, LDAX,
MDAX
,
SDAX
,
TecDAX
,
VDAX
and
EuroStoxx 50
.
[4]
Trading venues Xetra and Borse Frankfurt
[
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]
Through its
Deutsche Borse
Cash Market business section,
Deutsche Borse AG
now operates two trading venues at the Frankfurt Stock Exchange.
- Xetra
is the reference market for exchange trading in German equities and exchange traded funds. In 2015, 90 per cent of all trading in shares at all German exchanges was transacted through the
Xetra
. With regard to
DAX
listings, Xetra has 60 per cent market share throughout Europe.
[1]
Trading times on trading days are from 9.00 a.m. to 5.30 p.m.
[2]
The prices on
Xetra
serve as the basis for calculating the
DAX
, the best-known German
share index
. Over 200 trading participants from 16 European countries, plus Hong Kong and the
United Arab Emirates
, are connected via Xetra servers in
Frankfurt/Main
.
[3]
- Borse Frankfurt
is the trading venue for mainly private investors with more than one million securities of German and international issuers. So-called "specialists" on the trading floor attend to the trading of the securities.
[5]
Market surveillance and protective mechanisms
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Trading at the Frankfurt Stock Exchange is governed by clear rules, which apply equally for all trading participants. Independent market surveillance is made up of the Trading Surveillance Office (HUSt), the Exchange Supervisory Authority attached to the Hessian Ministry of Economic Affairs, Transportation, and Regional Development, and the Federal Financial Supervisory Authority (BaFin).
Xetra (trading system)
With a view to improving the continuity of prices and to avoid mistrades, several protective mechanisms are in place for the trading venues
Xetra
and
Borse Frankfurt
. These include volatility interruption, market order interruption, and liquidity interruption measures.
Xetra (trading system)
History
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]
The origins of the Frankfurt Stock Exchange go back to medieval trade fairs in the 11th century.
[6]
By the 16th century Frankfurt developed into a wealthy and busy city with an economy based on trade and financial services.
In 1585 a bourse was established to set up fixed currency
exchange rates
, which is considered to mark the 'birth' of the stock exchange.
[6]
During the following centuries Frankfurt developed into one of the world's first stock exchanges ? next to
Amsterdam
,
London
and
Paris
. Bankers like
Mayer Amschel Rothschild
and
Max Warburg
had substantial influence on Frankfurt's financial trade.
In 1879 Frankfurt Stock Exchange moved into its new building at Borsenplatz.
[7]
During the final third of the 19th century, Frankfurt was a major financial center in the Atlantic world.
[8]
It was only in 1949 after
World War II
that the Frankfurt Stock Exchange finally established as the leading
stock exchange
in Germany with consequently incoming national and international investments.
During the 1990s the Frankfurt Stock Exchange was also bourse for the
Neuer Markt
(New Market) as part of the worldwide dot-com boom.
In 1993 the
Frankfurter Wertpapierborse
(Frankfurt Stock Exchange) became Deutsche Borse AG, operating businesses for the exchange.
From the early 1960s onwards the Frankfurt Stock Exchange took advantage of the close by
Bundesbank
which effectively decided on financial policies in Europe until the introduction of the
euro
in 2002. Since then the exchange profits from the presence of the
European Central Bank
in Frankfurt.
In 2002 and 2004
Deutsche Borse
was in advanced negotiations to take over
London Stock Exchange
, which were broken off in 2005.
[9]
A further merger bid was blocked by the European Commission in 2017.
[10]
References
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]
Further reading
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]
External links
[
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]
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Present stock exchanges
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Former stock exchanges
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Notable buildings (financial)
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Notable attractions
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Notable squares and streets
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Public transport
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TecDAX
companies of Germany
updated 11.02.2024
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