Frankfurt Stock Exchange (FWB). Frankfurt Stock Exchange - Frankfurter Wertpapierberse (FWB) Access to the Frankfurt Stock Exchange

The history of the exchange dates back to the adoption by traders in 1585 of a single exchange rates currencies in Frankfurt am Main, which by that time had already become a major European trading city.

The Frankfurt Stock Exchange in Germany has been in the lead since 1949. In the late 1980s, Deutsche Borse merged several German exchanges under its wing, including the Frankfurt one.

In 1988, the DAX index was presented to the public, which was a list of 30 leading companies in Germany - “ blue chips"Traded on the Frankfurt Stock Exchange. This list includes such world leaders in their industries as Siemens, Adidas, BMW, Volkswagen Group, Bayer, Metro, Henkel. The site is operated by Deutsche Boerse Group AG. Under the control of the Deutsche Boerse Group, created on its basis, was transferred in 1993.

Perhaps I'll start with a small lyrical digression. The Frankfurt Stock Exchange (FSE) is one of the oldest in the world, its origins date back almost to the 11th century. Today it is the main German stock exchange, which provides 90% of the volume of stock trading in Germany and more than 60% of the turnover of the European Union.

Exchange history

The roots of the Frankfurt Stock Exchange go back to the medieval trade fairs of the 11th century, although some historians call the beginning of the formation of organized trading in the 9th century. In the 16th century, Frankfurt developed into a wealthy and vibrant city with an economy based on trade and financial services.

In 1585, an exchange was created to establish fixed exchange rates, which is considered the "birth" of the stock exchange. Over the next centuries, Frankfurt became one of the first exchanges in the world - along with London and Paris. Bankers such as Mayer Amschel Rothschild and Max Warburg have had a significant impact on financial trade Frankfurt.

It was only in 1949, after World War II, that the Frankfurt Stock Exchange finally established itself as the leading stock exchange in Germany.

During the 1990s, FSE was also the base for the New Market in the worldwide dot-com boom.

In 1993, Frankfurter Wertpapierbörse was taken over by Deutsche Börse AG.

In 2018, the trading platform continues to occupy a leading position in the ranking of world exchanges. Millions of trades in stocks, bonds, derivatives and synthetics are performed here every day. financial instruments, currencies and gold.

What is Xetra

Xetra is the main trading system of the German stock exchange (program, software). Xetra trading technology replaced the IBIS platform on November 28, 1997.

Through its Deutsche Börse Cash Market division, Deutsche Börse AG (read Deutsche Börse) in Frankfurt am Main now operates two trading platforms based on Xetra trading technology:

1. Xetra (XETR) is the primary market for German equities and ETFs. Also exchange commodities and notes circulate here.
2. Börse Frankfurt (XFRA) and the Börse Frankfurt Zertifikate AG (formerly Scoach) derivatives exchange were migrated to Xetra trading technology on 20 May 2011.

In addition, Xetra trading technology was also used in the Vienna stock exchange since November 1999. In December 2010, the Vienna Stock Exchange similarly listed Xetra on the Ljubljana Stock Exchange. Trading technology also operates on the Prague (since November 2012), Budapest (since December 2013), Irish (since 2000), Bulgarian (since 2008), Maltese (since 2012), the Cayman Islands Stock Exchange (since 2013 of the year) and Zagreb (since 2017).

Eurex Bonds, trading platform Deutsche Börse for government bonds, relies on Xetra trading technology. Trading system the new generation, operating on the Shanghai Stock Exchange, has also been developed based on Xetra trading technology.

Features of the XETRA system

You can trade on Xetra from anywhere in the world. Here are the key features of the system:

• Automatic entry of all transactions into a single register.
• Analysis of each individual buy or sell order.
• Selection of counter orders.
• Choosing the most favorable price to get the most benefit from the transaction.
• The modular principle of software construction.
• Built-in market tracking tool - XetraObserver. It records the trader's actions, brings analytics together and reports deviations from standard actions.

How to get listed on the stock exchange?

The conditions for listing on the Frankfurt Stock Exchange are quite simple, but, depending on the size of the company, there are two options for listing.

The first is "Standard" and is regulated by Deutsche Börse AG. The second is called "Premium" and the governing document here is the European Parliament Directive, known as MiFID, on Markets in Financial Instruments.

Premium listing members, in addition to meeting the size of the business, must mandatory regularly hold various educational events, congresses and meetings.

To enter one of the markets, a company must:

• Exist for at least 3 years.
• Prepare a prospectus.
• Lead financial statements in line with international; IFRS standards (IAS / IFRS).
• Minimum market capitalization of the issuer should be equal to 1.25 million euros.
• The minimum volume of placement is 10 thousand shares.
• Free float (number of shares in free float) at the time of placement - at least 25%.
• Six months before the placement, the company must undergo an audit and publish its results in English or German on its own website.

Pros and cons of the exchange

On the Frankfurt Stock Exchange, Xetra has established itself as a reliable and safe system trade. Its users note such advantages as market-based execution prices, low transaction costs, equality of bidders, geographic location and anonymity of trading partners.

The main problems that were identified in the trading process were to ensure the stability and availability of exchange trading, scalability and long-term growth of activity in the market.

The most famous traded stocks

Of course, the largest in terms of turnover are the shares of such world famous giants as Adidas, Lufthansa, Henkel, SAP, Bayer, Daimler, Deutsche Bank, Deutsche Telekom, Porsche, BMW, Volkswagen Group. They are also included in the 30 most liquid shares DAX index (blue chips).

How to access trading on the exchange

In Russia, access to trading on the German stock exchange can be obtained through almost any broker (Otkritie, Finam, Kit-Finance, BCS, etc.). The problem here is that Russian legislation this can only be done by a citizen of the Russian Federation with the status of a qualified investor (with more than 6 million rubles in the account).

You can also get access abroad: through the foreign subsidiary of Russian brokers Kit-Finance (Estonia), Finam (Cyprus and the USA) or a foreign broker: IB, Exante, Captrader. In any case, you will have to pay dividend tax. Moreover, both in Germany and in Russia.

Rick Keith Opening CapTrader Exante

Caution about Binary Options and Forex

I draw your attention to the fact that under the guise of trading stock exchange instruments in Germany, including company shares, scammers offer binary options... Be careful, they have nothing to do with the securities market. This is an ordinary casino. Just like stocks are not traded in forex, because it is an interbank currency market. In addition, it is poorly adjustable.

Shares can only be accessed through a licensed broker.

Exchange indices

The main indices on Börse Frankfurt are both the well-known DAX and its derivatives DAXPlus, Cdax, DivDAX, LDAX, MDAX, SDAX, TecDAX and VDAX.

In addition, the exchange calculates the key indicator of the entire European economy Euro Stoxx 50 in 5 currencies at once.

Derivatives "DAXs" include mainly companies from one of the sectors of the economy.

TecDAX is comprised of 30 high-tech companies with the most liquid stocks. In particular, this includes firms such as ADVA Optical Networking and Quality Service Communications AG (QSC), as well as software developer Software AG.

MDAX represents companies that are behind the top 30 in terms of liquidity. When calculating this index, indicators of 50 issuers are used. In particular, well-known brands such as Hugo Boss AG, Metro AG, Puma SE are included here.

The SDAX index is calculated on the basis of the value of shares of the first group of companies, which occupy places from 81 to 130 in terms of turnover on the stock exchange. Here you can find such well-known brands as Tom Tailor Holding AG, Bauer AG and so on.

HDAX is a general index that includes companies regardless of their industry. This includes firms represented in the indices described above. Among the companies can be noted, for example, BB Biotech AG (works in the field of biotechnology) or Q Cells GMBH (produces solar panels).

The CDAX index is also consolidated. It includes more than 300 companies that represent the first and second groups of listing. Due to this, this index can be considered as an indicator of the "health" of the German economy. Companies from various fields are gathered here, including car manufacturers (for example Volkswagen AG), banks (Commerzbank AG) and others.

Index investment prospects

The index is essentially a virtual portfolio of stocks. However, for an investor to collect it in the same proportions used to calculate the index, significant capital is required. Therefore, large investment companies create investment funds that copy the index. They form a portfolio of stocks included in the index. Then investors can buy shares in this fund (mutual fund, Mutual Fund, ETF). This is the only way to invest in the index long term.

You cannot just take and buy an index, it is virtual and not for sale. But, you can buy a derivative that is based on it - for example, a futures or an option. Both are sold only on the exchange, no Forex / binary options have anything to do with this.

These two instruments are time-limited, usually they expire in 3 months. Therefore, they are only used for buy and sell speculation or hedging. In theory, it is possible to make money on speculation, but not for long. Therefore, I advise you to invest for 3 or more years in ETFs and diversify your portfolio, including with different instruments.

Its importance increased after the Second World War in the late 40s, when the trading floor took a leading position in Germany. Since 1993, the Frankfurt Stock Exchange has been managed by the Deutsche Boerse Group.

The total capitalization of companies, and there are more than a thousand of them on the stock exchange, is about two trillion dollars. The turnover of funds on the Frankfurt Stock Exchange is almost 90% trade turnover all European exchanges. In 2017, by a decision of the European Commission, the merger of this trading platform with the London Stock Exchange was blocked, which prevented market monopolization.

Stock indices

The main stock index of the Frankfurt Stock Exchange is designated by the abbreviation DAX, its fluctuations largely characterize the state of the German economy. This indicator calculated based on the current stock quotes of the thirty largest German companies.

In addition to the main index, its derivatives are not used, they are calculated based on the value of shares of the following categories:

• TecDAX. 30 companies from high-tech industries, whose assets are highly liquid;
• MDAX. 50 largest corporations not included in TecDAX. This group includes the world famous brands Puma SE, Metro AG and Hugo Boss AG.
• SDAX. Ranked from 81 to 130 in the ranking, Bauer AG is the most prominent member of this group.
• HDAX is a general index calculated on the basis of data on stock quotes of firms from various sectors of the economy.

The composite index CDAX reflects the stability of the exchange, the basis for its calculation is the data of more than three hundred issuers, including the largest automakers, financial and credit institutions as well as many other companies.

Xetra trading system

The functioning of the exchange is provided by a complex hardware and software complex. The trading system is called Xetra and it was first launched in 1997. More than two dozen European and Asian trading platforms, including the all-German and Shanghai ones, have been integrated with this system.

The Xetra system allows you to carry out transactions for the purchase and sale of derivatives, shares, securities. The Cash Market subsystem is used in the cash market Money, and Xetra-Gold - for the purchase and sale of bank metals. In total, more than 2,500 instruments operate within the complex, including traditional - ETF, investment funds and others, as well as rarely used ETNc (valuable debt securities) and ETSc (commodity index).

Major players

On the described trading floor, there is a purchase and sale of securities of a large number of companies. The main players on the Frankfurt Stock Exchange are divided into three categories:

• banks;
• official rate brokers;
• registered traders.

Each of them performs its own functions. Banks form the primary price and provide the bulk of operations. Brokers accept applications from their clients and execute them, following the instructions received. Free traders do not have significant speculative potential, although they total amount great they cannot act in a consolidated manner.

One of the oldest and most distinctive exchanges on the planet, it continues to struggle for leading positions in both the European and world markets.

History of the Frankfurt Stock Exchange

1585 was a landmark year for the regularly held Frankfurt Fair: in order to avoid depreciation of money from many different trading countries, merchants agreed to exchange currencies. The appearance of such a regulator had a very effective effect on the further fate of the fair, which has already begun to resemble the prototype of the modern one. Transactions with bills of exchange and goods carried out on it were carried out at first in the open air, near the building of the city administration, but soon the merchants moved into the premises. For this reason, in order to collect payments from visitors, an exchange administrative body appeared, consisting of merchant deputies, and, therefore, stock exchange in Frankfurt acquired its own organized structure.

Frankfurt Stock Exchange by the beginning of the twentieth century, it was considered one of the most advanced exchanges in Europe. It traded bills of exchange, bonds and government loans, and also the official exchange rate appeared, bringing together disparate individual brokers. However, the lack of attention to the new stock instrument - stocks, together with the outbreak of the First World War, dealt a severe blow to the recent successful institution, sending it into significant oblivion. The revival of Phoenix from financial ashes took place already in the 50s. XX century.

DAX Index

In the late 1980s, a new player on stock market, Deutsche Borse, has united several German exchanges under its wing, including the Frankfurt (FWB). In 1988, the general public was presented DAX index, which was a list of 30 leading German blue-chip companies trading on Frankfurt Stock Exchange... This list includes such world leaders in their industries as Siemens (IT-technologies), Adidas (sportswear and footwear), BMW, Volkswagen Group (automotive), Bayer (pharmaceuticals), Metro ( retail), Henkel (household chemicals). Due to the leading positions of these companies on international market DAX index is one of the most important in the global market.

Frankfurt in a race with London

At the moment, in terms of the turnover of transactions with shares, it ranks second in Europe, behind its main hated competitor - the London Stock Exchange. To reach the first position, the German leadership took many steps, such as negotiations on a possible merger with Euronext or the Russian MICEX exchanges and directly tried to buy the main enemy, but the deal with Londoners failed. One of the significant advantages Frankfurt Stock Exchange are: high transparency of trading rules in the market and a large number of financial instruments.

It will not be superfluous to mention what exactly is on Frankfurt Stock Exchange e in the eighteenth century, Mayer Amschel Rothschild began his first steps in trade, who soon became a powerful banker and transferred his influence to his sons, the activities of whose descendants still have a wide public response.

- (Frankfurt Stock Exchange, Frankfurt Wertpapierbrse) The oldest and largest of the eight regional stock exchanges in Germany, which accounts for more than 75% of the volume of securities trading in this country. The first operations on it began in 1820 ... ... Financial vocabulary

Frankfurt Stock Exchange- The oldest and largest of the eight regional stock exchanges in Germany, which accounts for more than 75% of the volume of securities trading in this country. The first operations on it began in 1820 (with shares of the Austrian National Bank), with ...

Frankfurt Stock Exchange- A stock exchange receiving financial and administrative support from the holding company Deutsche Borse AG. This stock exchange is responsible for the rules for accessing the exchange, conducting trading and supervising. ... ... Financial and investment explanatory dictionary

FRANKFURTS STOCK EXCHANGE- (Frankfurt Wertpapierbor e) the oldest and largest of the eight stock exchanges in Germany. It accounts for over 75% of securities transactions in the country. Trading is carried out in three markets of the exchange: the official market, where transactions are carried out with ... ... Foreign economic explanatory dictionary

Stock Exchange- Bombay Stock Exchange The oldest stock exchange in India and Asia. Founded in 1875 as the local Stockbrokers Association. Recognized by the government as an official exchange in 1956. In 2005 it was transformed into ... Wikipedia

Frankfurt Stock Exchange- Frankfurt Stock Exchange Location Germany: Frankfurt am Main, Hesse Founded 1585 Currency Euro ... Wikipedia

STOCK EXCHANGE. ORGANIZATION AND FUNCTIONING- New York Stock Exchange. It is a non-profit organization owned by 1,366 members and managed by a board of directors. The exchange's revenues are generated from fees paid by members and the companies they represent, and are used to pay ... ... Collier's Encyclopedia

Stock Exchange- the exchange on which transactions with securities and other stock values ​​(gold, exchange contracts, currency) are made. On B.f. there is a purchase and sale of shares, bonds of joint-stock companies, state and municipal bonds. ... ... Business glossary

stock exchange- The exchange where transactions are made securities... Through f.b. funds are mobilized for long-term investments in the economy and for financing government programs... On f.b. there is a purchase and sale of shares, bonds of joint-stock companies, ... ... Technical translator's guide

EXCHANGE, STOCK- the exchange where transactions in securities are made. Through F.b. funds are mobilized for long-term investments in the economy and for financing government programs. On F.b. there is a purchase and sale of shares, bonds of joint stock companies, ... ... Big accounting dictionary