What is the Frankfurt Stock Exchange?

The Frankfurt Stock Exchange (FSE), previously known as the Frankfurter Wertpapierbörse – FWB, is the largest of Germany’s seven regional stock exchanges. It is the 12th largest stock exchange in the world with a market capitalisation approaching $2bn. Located in the business district in Frankfurt, the exchange is operated by Deutsche Börse, which together with the Börse Frankfurt Zertifikate, is the repository of the exchange.

Key takeaways:

Where have you heard of the Frankfurt Stock Exchange?

As an investor you have likely heard of the FSE stock exchange as it is home to the widely followed Deutscher Aktien Index (DAX), an index of 30 blue-chip German companies that are listed on the exchange. Companies in the DAX include large multinational companies like Allianz (ALV), BASF (BAS), Bayer (BAYN), SAP (SAP) and Siemens (SIE), which together account for 43 per cent of the index. STOXX, which is owned by Deutsche Börse and operates the DAX, also manages the EuroStoxx 50 Index of the largest companies in the Eurozone.

What do you need to know about the Frankfurt Stock Exchange?

One of the oldest exchanges in the world, Frankfurt Stock Exchange history is rooted in the trade fairs of medieval times. An official stock exchange was established in 1666 when the first regulations and rules were enacted. The exchange primarily dealt with the trading of government bonds and funds until 1850. The operation and management of the Frankfurt Stock Exchange was transferred from the Frankfurt Chamber of Commerce and Industry to the newly founded FWB in 1990. Today, more than 250 trading institutions and over 4,500 traders from around the world are active on the exchange. The Frankfurt Stock Exchange trading hours are 09:00-17:30 from Monday to Friday, with the exception of public holidays.

How many companies are listed on the Frankfurt Stock Exchange?

The exchange lists thousands of companies from more than 80 countries. Companies can be listed on either the Regulated Market, which is subject to EU law, or the Open Market, which is regulated by the exchange.

What is the difference between the Xetra and the Frankfurt Stock Exchange?

You might have heard of the Xetra, but are you unsure how it relates to the stock exchange? The Xetra is the electronic trading platform for the exchange, which was launched in 1997. It has a market share of more than 70 per cent. Stock prices on the Xetra form the basis of the Deutscher Aktien Index (DAX).

The turnover on Xetra’s order book stood at €126.7bn in February 2021, with 90 per cent of it generated in Germany.

The Börse Frankfurt also offers specialist trading for private investors on the trading floor with more than 1 million securities from Germany and abroad.

Is the Frankfurt Stock Exchange a regulated market?

The exchange is regulated by the Hessian Ministry of Economics, which is the securities and exchange commission for the German State of Hesse, where Frankfurt is the capital. It also comes under the jurisdiction of the German Federal Financial Supervisory Authority (BaFin). The Trading Surveillance Office is an independent body at the exchange that supervises the conduct of the markets to protect investors.