Frankfurt Stock Exchange

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Frankfurt Stock Exchange

The Frankfurt Stock Exchange is a stock exchange

Stock exchange

A stock exchange, securities exchange or bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and trader s, to trade stocks and other security ....
located in Frankfurt

Frankfurt

is the largest city in the German States of Germany of Hesse and the List of cities in Germany with more than 100,000 inhabitants in Germany, with a 2008 population of 670,000....
, Germany

Germany

Germany , officially the Federal Republic of Germany , is a country in Central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south by Austria and Switzerland; and to the west by France, Luxembourg, Belgium, and the Netherlands....
.

The Frankfurt Stock Exchange is one of the biggest and most efficient exchange places in the world. It is owned and operated by Deutsche Börse

Deutsche Börse

Deutsche B?rse Aktiengesellschaft is a marketplace organizer for the trading of shares and other security . It also is a Financial services provider....
, which also owns the European futures exchange

Futures exchange

A futures exchange is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with Delivery set at a specified time in the future....
Eurex

Eurex

Eurex is a major Futures exchange for European benchmark derivatives featuring open and low-cost electronic access globally. Its electronic trading and clearing platform offers a broad range of products and amongst other, operates the most liquid fixed income markets....
and clearing company Clearstream

Clearstream

Clearstream Banking S.A. is the clearing division of Deutsche B?rse, based in Luxembourg.It was created in January 2000 through the merger of Cedel and Deutsche B?rse Clearing, part of the Deutsche B?rse Group, which owns the Frankfurt Stock Exchange....
.

The Frankfurt Stock Exchange has over 90 percent of turnover in the German market and a big share in the European market. Here the Frankfurt Stock Exchange floor trading loses, but in fast developing and expanding electronic trading (Xetra

Xetra (trading system)

Xetra is a worldwide Electronics security trading system based in Frankfurt, Germany. It was created for the Frankfurt Stock Exchange and launched in November, 1997....
trading system) the FSE gains in European and international trade: partner-exchanges adopted the Xetra (trading system)

Xetra (trading system)

Xetra is a worldwide Electronics security trading system based in Frankfurt, Germany. It was created for the Frankfurt Stock Exchange and launched in November, 1997....
(as the Vienna Stock Exchange in 1999, the Irish Stock Exchange

Irish Stock Exchange

The Irish Stock Exchange is Ireland's stock exchange, formed through the merger of the Cork and Dublin exchanges, both of which have existed as far back as 1793....
in 2000 and the Budapest Stock Exchange

Budapest Stock Exchange

The Budapest Stock Exchange was re-opened in 1990 with headquarters in Budapest, Hungary.BSE is the key institution of the Hungarian Financial market and the official trading venue for publicly offered securities....
in 2003); consolidation continues.

Mainly through Xetra, the German stock market has been opened to foreign investors and market participants.

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Encyclopedia

The Frankfurt Stock Exchange is a stock exchange

Stock exchange

Frankfurt

is the largest city in the German States of Germany of Hesse and the List of cities in Germany with more than 100,000 inhabitants in Germany, with a 2008 population of 670,000....
, Germany

Germany

Deutsche Börse

Futures exchange

Eurex

Clearstream

Xetra (trading system)

Irish Stock Exchange

Budapest Stock Exchange

DAX

DAX 30 The L-DAX Index is an indicator of the German benchmark DAX 30 Index's performance after the Xetra electronic-trading system closes based on the floor trading at the Frankfurt Stock Exchange....
, DAXplus, CDAX, DivDAX, LDAX, MDAX

MDAX

The MDAX is a stock index which lists German companies. The index is calculated by Deutsche B?rse.It includes the 50 Prime Standard shares from classic sectors that rank immediately below the companies included in the DAX index....
, SDAX

SDAX

The SDAX is the selection stock market index for 50 smaller companies in Germany, so-called small caps, that in terms of order book volume and market capitalization rank directly below the MDAX shares....
, TecDAX

TecDAX

The TecDAX stock index tracks the performance of the 30 largest German companies from the technology sector. The companies rank in terms of order book Revenue and market capitalization rank below those included in the DAX....
, VDAX

VDAX

The VDAX-NEW Index expresses the variation margin ? the implied volatility ? of the DAX anticipated on the derivatives market. The VDAX indicates in percentage points the volatility to be expected in the next 30 days for the DAX....
and EuroStoxx 50.

Trading runs from 09:00 to 17:30 with closing auction from 17:30-17:35. In November 2003, Late DAX was introduced running from 17:45 to 20:00 and in 2006 X-DAX was introduced running from 17:45-22:00 (in line with US trading hours).

History

The origins of the Frankfurt Stock Exchange go back to the 9th century and a free letter by Emperor

Emperor

An emperor is a monarch, usually the sovereign ruler of an empire or another type of imperial realm. Empress is the female equivalent. As a title, "empress" may indicate the wife of an emperor or a woman who rules in her own right ....
Louis the German

Louis the German

Louis the German , was a grandson of Charlemagne and the third son of the succeeding Holy Roman Emperor Louis the Pious and his first wife, Ermengarde of Hesbaye....
to hold free trade fairs. 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

Currency

A currency is a Medium of exchange, facilitating the trade of goods and/or Service s. It is coins and paper bills used as money. It is one form of money, where money is anything that serves as a medium of exchange, a store of value, and a standard of value....
exchange rates. During the following centuries Frankfurt developed into one of the world's first stock exchanges - next to London

London

London is the capital of both England and the United Kingdom, and the most populous municipality in the European Union. An important settlement for two millennia, History of London goes back to its founding by the Roman Empire....
and Paris

Paris

Paris is the Capital of France and the country's largest city. It is situated on the river Seine, in northern France, at the heart of the ?le-de-France Regions of France ....
. Bankers like Mayer Amschel Rothschild and Max Warburg

Max Warburg

Max M. Warburg was a Jewish-German-American banker and was, from 1910 until 1938, director of M.M.Warburg & CO in Hamburg, Germany. Prior to his directing of the Warburg banking company, he developed apprenticeships in Frankfurt, Amsterdam, Paris, and London....
had substantial influence on Frankfurt's financial trade.

In 1874 Frankfurt Stock Exchange moved into its new building at Börsenplatz.

It was only in 1949 after World War II

World War II

World War II, or the Second World War , was a global military conflict which involved a Participants in World War II, including all of the great powers, organised into two opposing military alliances: the Allies of World War II and the Axis powers....
that the Frankfurt Stock Exchange finally established as the leading stock exchange

Stock exchange

Germany

Germany , officially the Federal Republic of Germany , is a country in Central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south by Austria and Switzerland; and to the west by France, Luxembourg, Belgium, and the Netherlands....
with consequently incoming national and international investments.

During the 1990s the Frankfurt Stock Exchange was also bourse for the Neuer Markt (German

German language

German is a West Germanic languages, thus related to and classified alongside English language and Dutch language. It is one of the world's world language and the most widely spoken mother tongue in the European Union....
for New Market) as part of the world wide 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

Euro

The euro is the official currency of 16 out of 27 European Union member state of the European Union . The states, known collectively as the Eurozone are: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Republic of Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain....
in 2002. Since then the exchange profits from the presence of the European Central Bank

European Central Bank

The European Central Bank is one of the world's most important central banks, responsible for monetary policy covering the 16 member States of the Eurozone....
in Frankfurt am Main.

In 2002 and 2004 Deutsche Börse

Deutsche Börse

Deutsche B?rse Aktiengesellschaft is a marketplace organizer for the trading of shares and other security . It also is a Financial services provider....
was in advanced negotiations to take over London Stock Exchange

London Stock Exchange

The London Stock Exchange or LSE is a stock exchange located in London, United Kingdom. Founded in 1801, it is one of the largest stock exchanges in the world, with many overseas listings as well as British companies....
, which were broken off in 2005.

Today, with a total turnover of €5.2 trillion per year the Frankfurt Stock Exchange strengthens its position as the world's 3rd largest trade-place for stocks and the world's 2nd largest by market capitalization

Market capitalization

Market capitalization/capitalisation is a measurement of corporate or economic wealth equal to the share price times the number of shares outstanding of a public company....
.

Frankfurt Stock Exchange

History

See also

Further reading

External links