Frankfurt-based Deutsche Börse Group traces its roots to 1585. It is one of the largest exchange organisations worldwide. It has an integrated business model. Its product and service portfolio has a broader basis than other exchange organisations.
Its process chain stretches from the monitored execution of trading orders, clearing, netting and transaction settlement through to post-trade custody of securities as well as the necessary electronic infrastructure and the provision of market information.
The stated vision of management is to turn Deutsche Börse Group into the global market infrastructure provider of choice, one that is top-ranked in all of its sundry activities by, inter alia, taking advantage of external growth opportunities.
Deutsche Börse has offices in Luxembourg, Prague, London, Zurich and Moscow, in New York and Chicago, in Hong Kong, Singapore, Beijing and Tokyo – and more locations for its customers worldwide.
Having organised securities markets since 1585, Deutsche Börse says it is more than just a German exchange. Using high-performance technology, it provides services to securities markets.
Deutsche Börse covers the entire range of products and services that are part and parcel of exchange trading: equities and derivatives trading, clearing and settlement of orders, custody of securities, and provision of market data. It does not offer CFD trading.
Source: Deutsche Börse
Further to the core
Further core elements of its business model are the development, building and operation of its electronic trading systems as well as the provision of IT services for third parties. Its Xetra system is claimed to be one of the most efficient fully electronic trading platforms.
Along with its subsidiaries International Securities Exchange and European Energy Exchange, the Deutsche Börse Group company Eurex is one of the world’s leading market organisers for trading and clearing of futures and options.
Deutsche Börse also owns Clearstream International, a post-trade services specialist. Deutsche Börse Group develops and operates its own trading systems and supervises the worldwide participant network – the world's largest exchange network.
Deutsche Börse Group comprises Deutsche Börse AG and its subsidiaries. Deutsche Börse AG also operates Frankfurter Wertpapierbörse (FWB). FWB is one of the world’s largest trading centres for securities and the largest of Germany’s seven stock exchanges.
Today, the Frankfurt Stock Exchange is an international trading centre. This is also reflected in the structure of its participants. Of the 200+ market participants, roughly half are from countries other than Germany. Deutsche Börse AG has been listed since 5 February 2001.
The company is one of the most highly valued exchange organisations in the world. Deutsche Börse is included in its own German blue-chip index DAX and key sustainability indices. The majority of shares are owned by international institutional investors.
Defining and monitoring
Deutsche Börse itself does not trade actively; it organises trading by providing the infrastructure, defining rules and monitoring trading participants’ compliance with regulations. Investors can choose between three trading venues to place their orders.
Deutsche Börse calculates that the trading venues Xetra, Frankfurt and Tradegate generate around 98 per cent of trading in German equities on the regulated Frankfurt Stock Exchange. The prices at Xetra and Frankfurt are regarded as reference prices.
Deutsche Börse states that Xetra stands for high liquidity, continuous innovation and a maximum of security. With more than 1 million products, Xetra offers a huge variety of tradeable instruments.
Independent surveillance protects investors
Investors can buy and sell the most important German and international shares on Xetra. They can also trade exchange-traded funds, exchange-traded commodities, exchange-traded notes and corporate bonds.
The Frankfurt Stock Exchange also uses Xetra technology for its trading in shares, funds, corporate bonds, certi cates and warrants. The independent Handelsüberwachungsstelle ensures legal requirements are fulfilled and the interests of investors are protected.
For institutional and private investors, Börse Frankfurt is a useful addition to the fully electronic Xetra platform as this is where less liquid shares and most bonds are traded. At the Frankfurt Stock Exchange, investors can trade from 8am until 8pm.
Suited to the private investor
Deutsche Börse says that with long trading hours from 8am until 10pm, order types with intelligent control and real-time data free of charge, Tradegate Exchange is suited to the needs of private investors.
Address: 60485 Frankfurt/Main Germany
Telephone: +49-(0) 69-2 11-1 16 70; (for visitors +49-(0) 69-2 11-1 15 15)
Chief Executive Officer: Carsten Kengeter
CEO Carsten Kengeter; source Deutsche Börse
Chairman of Supervisory Board: Richard Berliand
Source: Deutsche Börse
Best known indices
EURO STOXX 50
DAX chart; source Deutsche Börse
Opening hours: Monday to Friday. 9am - 5.30pm
Market capitalisation April 2017: c€2 trn
Number of companies listed as of January 2017: around 700. It is possible to trade equities of about 11,000 international companies via Frankfurt Stock Exchange.
Five biggest listed companies as of June 12 2017 (in descending order): SAP, Siemens, Bayer, Deutsche Telekom, BASF.
Top five DAX Tops year-on-year: Lufthansa (+51.92%); RWE (+50.24%); Infineon (+49.43%); Linde (+35/30%); SAP (+34.32%).
Top five DAX Flops year-on-year: Volkswagen (+3.12%); Munchener Ruckversicherungs (+10.25%); Daimler (+10.85%); EON (+11.52%); Deutsche Telekom (+14.38%).
Serious fact: In the course of an Allied Forces bomb attack, the Frankfurt stock exchange building is severely damaged. The exchange continues to operate in the cellars.
Fun fact: Deutsche Börse became the financial centre partner of the Eintracht Frankfurt Fußball AG in May 2017.
1585 First assembly of Frankfurt merchants to fix exchange rates – birth of the Frankfurt Stock Exchange.
1625 First stock exchange price list with twelve sorts of money.
1666 The first exchange rules and regulations are enacted, leading to the establishment of efficient markets.
1799 Separate exchange regulations enacted for currency and goods traders respectively.
- The Frankfurt chamber of commerce is founded
- The directors of the exchange are assigned to a newly formed committee within the Chamber
- From now on, the Chamber of Commerce is the body responsible for the Frankfurt stock exchange
1820 First share in Frankfurt – Oesterreichische Nationalbank (Austrian central bank).
1879 Stock exchange moves to building at Rahmhof, a precursor of the current home of the trading floor.
- In the course of an Allied Forces bomb attack, the Frankfurt stock exchange building is severely damaged
- The exchange continues to operate in the cellars
1945 Resumption of unofficial trading after a seven-month shutdown.
1948 Resumption of official trading after German currency reform.
1970 Börsen-daten-Zentrale GmbH (BdZ) is founded; as the data centre of the Frankfurt stock exchange, BdZ is one of the precursors of Deutsche Börse Systems AG.
1986 The consortium of German stock exchanges (Arbeitsgemeinschaft der deutschen Wertpapierbörsen) is founded.
1987 Computer-based price information system KISS replaces the electromechanical price display boards used in the trading hall since 1964.
1988 Introduction of DAX, the benchmark index for German blue chips.
1992 Renaming of Frankfurter Wertpapierbörse AG to Deutsche Börse AG.
1997 Launch of Xetra, the fully electronic trading system.
1998 Foundation of Eurex, the world’s first cross-border derivatives exchange.
2000 Merger of Deutsche Börse Clearing AG and Cedel International SA to form Clearstream International SA.
2001 IPO of Deutsche Börse AG.
- Acquisition of Clearstream International SA completed
- Listing of Deutsche Börse’s share in the benchmark index DAX
2009 Increase of the interest in the index provider STOXX Ltd to 50 per cent plus one share.
2011 Migration of the floor trading to Xetra technology.
2014 Expansion of the investment fund business through the acquisition of Citco Global Securities Services.
2015 Full integration of STOXX Ltd and acquisition of FX trading platform 360T.
2016 Deutsche Börse AG and the UK's London Stock Exchange Group announce controversial plans to merge.
- European Commission blocks Deutsche Börse AG and LSEG merger plans
- Deutsche Börse divests remaining shareholding in BATS.
- Deutsche Börse subsidary European Energy Exchange agress to buy Nordal Exchange Holdings giving Deutsche Börse access to the North American energy market
- Clearstream migrates domestic settlement business of its national central securities depositories to the European Central Bank's TARGET-2 Securities platform
Sources: www.deutsche-boerse.com; www.world-exchanges.org
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