Frankfurt Stock Exchange

The Frankfurt Stock Exchange (German: Börse Frankfurt, former German name Frankfurter Wertpapierbörse - FWB) is the world's 10th largest stock exchange by market capitalization.[2] It has operations from 9:00 am – 5:30 pm (UTC+02:00).[3]

Frankfurt Stock Exchange
Frankfurter Wertpapierbörse
Boerse Frankfurt.svg
Frankfurt Am Main-Neue Boerse von Suedosten-20120222.jpg
TypeStock exchange
LocationFrankfurt, Hesse, Germany
Coordinates50°06′55″N 8°40′40″E / 50.11528°N 8.67778°E / 50.11528; 8.67778
Founded1585
OwnerDeutsche Börse, Börse Frankfurt Zertifikate AG
CurrencyEuro
Market capUS$ 1,776 billion (July 2015)[1]
Websitewww.boerse-frankfurt.de
Building in the center of Frankfurt
The bear and the bull in front of the Exchange

OrganisationEdit

Located in Frankfurt, Germany, the Frankfurt Stock Exchange is owned and operated by Deutsche Börse AG and Börse Frankfurt Zertifikate AG. It is located in the district of Innenstadt and within the central business district known as Bankenviertel.[2]

With 90 per cent of its turnover generated in Germany, namely at the two trading venues Xetra and Börse 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 Börse FrankfurtEdit

Through its Deutsche Börse Cash Market business section, Deutsche Börse 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]
  • Börse 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 mechanismsEdit

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 (HÜSt), the Exchange Supervisory Authority attached to the Hessian Ministry of Economic Affairs, Transportation, and Regional Development, and the Federal Financial Supervisory Authority (BaFin).[6]

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 Börse Frankfurt. These include volatility interruption, market order interruption, and liquidity interruption measures.[5]

HistoryEdit

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 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 Börsenplatz.[7]

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.

 
Frankfurt Stock Exchange floor

During the 1990s the Frankfurt Stock Exchange was also bourse for the Neuer Markt (German for New Market) as part of the worldwide dot-com boom.

In 1993 the Frankfurter Wertpapierbörse (Frankfurt Stock Exchange) became Deutsche Börse 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 Börse was in advanced negotiations to take over London Stock Exchange, which were broken off in 2005.[8] A further merger bid was blocked by the European Commission in 2017.[9]

The following timeline outlines the consolidation through mergers and acquisitions among bourses in the European Union, which has taken place since the 1990s in response to financial harmonisation and liberalisation. Current, independent (parent) exchange companies are shown in colour.

      Intercontinental Exchange, Inc.
    New York Stock Exchange, Inc.     NYSE Euronext, Inc.
      London Traded Options Market   London International Financial Futures and Options Exchange   Euronext N.V.
        London International Financial Futures Exchange
      London Commercial Sale Rooms   London Commodity Exchange  
  Amsterdam Exchanges N.V. (Amsterdam Stock Exchange)       Euronext N.V.
      Bourse de Valeurs Mobilières de Bruxelles S.A. (Brussels Stock Exchange)
    Société des Bourses Françaises S.A. (Paris Stock Exchange)
      Bolsa de Valores de Lisboa e Porto (Lisbon Stock Exchange)
            Irish Stock Exchange  
                  Oslo Stock Exchange   Oslo Børs Holding ASA   Oslo Børs VPS Holding ASA  
                                        Verdipapirsentralen   Verdipapirsentralen ASA  
                                      VP Securities A/S  
                    Borsa Italiana S.p.A. (Italian Bourse)   London Stock Exchange Group plc  
      London Stock Exchange plc  
                                                Statnett Marked AS     Nord Pool Spot AS   Nord Pool AS  
                                                Nord Pool ASA  
                                    Nasdaq, Inc.
                        Stockholm Stock Exchange   OM AB   OM HEX AB   OMX AB
                            Helsinki Stock Exchange   Helsinki Exchanges Group Plc
                                                  Tallinn Stock Exchange  
                                                Riga Stock Exchange  
                                                Vilnius Stock Exchange
    Copenhagen Stock Exchange  
                                            Iceland Stock Exchange  
                                                            Armenian Stock Exchange  
                                                  SIX Swiss Exchange AG
                        Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (Spanish Bourses)  
                            Budapest Stock Exchange       Budapest Stock Exchange
            Wiener Börse AG (Vienna Stock Exchange)   Central and Eastern Europe Stock Exchange Group AG   Vienna Stock Exchange
                                                  Burza cenných papírů Praha, a.s. (Prague Stock Exchange)  
                                              Ljubljana Stock Exchange      
                                                Zagreb Stock Exchange
  Frankfurter Wertpapierbörse AG (Frankfurt Stock Exchange)     Deutsche Börse AG (German Bourse)
                                    Centrale de Livraison de Valeurs Mobilières   Cedel International  
                                                                European Energy Exchange  
                                                            Eurex Exchange  
                                                            STOXX
1585
1602
1625
1698
1724
1769
1771
1792
1799
1801
1808
1818
1831
1863
1864
1912
1954
1970
1971
1978
1979
1980
1985
1989
1991
1993
1995
1996
1998
2000
2001
2002
2003
2004
2005
2006
2007
2008
2010
2011
2012
2013
2014
2015
2016
2018
2019
2020
2021

ReferencesEdit

  1. ^ Deutsche Boerse AG, Summary as of 24 July 2015. markets.ft.com, retrieved 26 July 2015
  2. ^ a b c Market, Deutsche Börse Cash. "Deutsche Börse Cash Market - Organisation of the FWB". www.deutsche-boerse-cash-market.com. Retrieved 2016-04-09.
  3. ^ https://market24hclock.com/Trading-Hours/Trading-Hours-of-Frankfurt-Stock-Exchange-FWB
  4. ^ Market, Deutsche Börse Cash. "Deutsche Börse Cash Market - Indices". www.deutsche-boerse-cash-market.com. Retrieved 2016-04-09.
  5. ^ Market, Deutsche Börse Cash. "Deutsche Börse Cash Market - Trading Venues". www.deutsche-boerse-cash-market.com. Retrieved 2016-04-09.
  6. ^ a b "History of the Frankfurt Stock Exchange – Fairs, coins and bills of exchange: 11th - 17th century". Deutsche Börse. Retrieved 9 July 2015.
  7. ^ "History of the Frankfurt Stock Exchange – Patricians, princes and commodity markets: 18th - 19th century". Deutsche Börse. Retrieved 11 July 2015.
  8. ^ Deutsche Boerse withdraws LSE offer; to return cash to shareholders
  9. ^ Mergers: Commission blocks proposed merger between Deutsche Börse and London Stock Exchange

Further readingEdit

External linksEdit