Frankfurt Stock Exchange Explained

Frankfurt Stock Exchange
Nativename:German: Frankfurter Wertpapierbörse
Type:Stock exchange
City:Frankfurt, Hesse
Country:Germany
Coor:50.1153°N 8.6778°W
Owner:, Börse Frankfurt Zertifikate AG
Currency:Euro
Mcap:US$2.37 trillion (March 2023)[1]

The Frankfurt Stock Exchange (German: link=no|'''Börse Frankfurt''', former German name: German: Frankfurter Wertpapierbörse, 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

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.

With 90 percent 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.

The trading indices are DAX, DAXplus, CDAX, DivDAX, LDAX, MDAX, SDAX, TecDAX, VDAX and EuroStoxx 50.[4]

Trading venues Xetra and Börse Frankfurt

Through its German: Deutsche Börse|italic=no Cash Market business section, Deutsche Börse AG now operates two trading venues at the Frankfurt Stock Exchange.

Market surveillance and protective mechanisms

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).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 Börse Frankfurt. These include volatility interruption, market order interruption, and liquidity interruption measures.Xetra (trading system)

History

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. 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 Börsenplatz.[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 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 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]

Further reading

External links

Notes and References

  1. https://www.statista.com/statistics/270126/largest-stock-exchange-operators-by-market-capitalization-of-listed-companies/#:~:text=The%20New%20York%20Stock%20Exchange,What%20is%20a%20stock%20exchange%3F Deutsche Boerse AG
  2. Web site: Deutsche Börse Cash Market – Organisation of the FWB. Market. Deutsche Börse Cash. www.deutsche-boerse-cash-market.com. 9 April 2016. 5 April 2016. https://web.archive.org/web/20160405010038/http://www.deutsche-boerse-cash-market.com/dbcm-en/about-us/organisation-of-the-fwb. live.
  3. Web site: Frankfurt Stock Exchange website (section Börse Frankfurt). 22 January 2022. 31 March 2019. https://web.archive.org/web/20190331080910/http://en.boerse-frankfurt.de/index/constituents/Euro_Stoxx_50. live.
  4. Web site: Deutsche Börse Cash Market – Indices. Market. Deutsche Börse Cash. www.deutsche-boerse-cash-market.com. 9 April 2016. 5 April 2016. https://web.archive.org/web/20160405012758/http://www.deutsche-boerse-cash-market.com/dbcm-en/about-us/services/incides. dead.
  5. Web site: Deutsche Börse Cash Market – Trading Venues. Market. Deutsche Börse Cash. www.deutsche-boerse-cash-market.com. 9 April 2016. 29 September 2018. https://web.archive.org/web/20180929013017/http://www.deutsche-boerse-cash-market.com/dbcm-en/about-us/services/trading-venues. live.
  6. Web site: History of the Frankfurt Stock Exchange – Fairs, coins and bills of exchange: 11th – 17th century. Deutsche Börse. 9 July 2015. 17 March 2016. https://web.archive.org/web/20160317183048/http://deutsche-boerse.com/dbg/dispatch/en/kir/dbg_nav/about_us/20_FWB_Frankfurt_Stock_Exchange/70_History_of_the_FWB. live.
  7. Web site: History of the Frankfurt Stock Exchange – Patricians, princes and commodity markets: 18th – 19th century. Deutsche Börse. 11 July 2015. 24 October 2013. https://web.archive.org/web/20131024065352/http://deutsche-boerse.com/dbg/dispatch/en/kir/dbg_nav/about_us/20_FWB_Frankfurt_Stock_Exchange/70_History_of_the_FWB?horizontal=page2_DB_SP_FWB-Historie18-19. live.
  8. Hein. Benjamin. 16 November 2020. Old Regime in a New World: Frankfurt's Financial Market in the Nineteenth Century. The Journal of Modern History. 92. 4. 735–773. 10.1086/711314. 226968343. 0022-2801. 27 November 2020. 25 October 2021. https://web.archive.org/web/20211025160702/https://www.journals.uchicago.edu/doi/10.1086/711314. live.
  9. Web site: Deutsche Boerse withdraws LSE offer; to return cash to shareholders . 24 November 2008 . 27 October 2021 . https://web.archive.org/web/20211027115613/https://www.finanznachrichten.de/nachrichten-2005-03/1877713-deutsche-boerse-withdraws-lse-offer-to-return-cash-to-shareholders-020.htm . live .
  10. Web site: Mergers: Commission blocks proposed merger between Deutsche Börse and London Stock Exchange . 20 April 2017 . 29 March 2017 . https://web.archive.org/web/20170329165356/http://europa.eu/rapid/press-release_IP-17-789_en.htm . live .