 Financial Communications
  
Deutsche Börse
Stock Exchanges:
Frankfurt (Frankfurter Wertpapierboerse, FWB)
- Principal Stock Exchange.
- Established in 1585, fourth largest stock exchange in the world.
Berlin, Hamburg, München, Stuttgart, Düsseldorf, Hannover, Bremen
- Regional exchanges.
- Minor roles.
Each share, listed at one of the seven exchanges, is assigned to one of three market segments, created in terms of liquidity, risk-yield profiles and special transparency requirements. The prerequisite for listing in one of these segments is completion of a particular approval process.
Segments (* based on requirements of Frankfurt)
First segment / 'official trading' *
- Highest requirements.
- Company's minimum age: 3 years.
- Issuer must go through an approval process under public-sector legal provisions together with at least one bank or financial service.
- Issuers are subject to certain follow-up requirements.
- Language of publication: German, for foreign issuers also in English.
- Stocks of this segment are included in the DAX.
Second segment / 'regulated market' *
- Companies minimum age: no requirements.
- Issuer must go through a public-sector approval process prior to approval for trading (see above).
- If the company is already listed on the regulated market on another German stock exchange, application for a listing may be made without a supporting institution.
- The approval criteria and follow-up obligations are less demanding in the second segment than under the first segment.
- Language of publication: German, for foreign issuers also in English.
Third segment / 'regulated unofficial market' *
- Apart from German shares, largely foreign shares and warrants are listed here.
- Largest market segment in Frankfurt.
- Companies minimum age: no requirements.
- Companies are only subject to a few formal approval prerequisites and no follow-up obligations.
- Every Market maker can initiate a listing, even without approval of company.
- Costs: ~ Euro 5.000.
- Language: German, for foreign issuers also in English.
Special market segments in Frankfurt:
Neuer Markt.
- Launched March 10, 1997.
- Independent trading segment within third segment.
- Shares are approved for listing in the second segment and trading takes place within the Neuer Markt.
- Young innovative companies within growth areas.
(Telecommunication, Biotechnology, Multimedia, Environmental Technology and companies, which offer new products or services of innovation).
- Companies minimum age: should be at least 3 years.
- Companies must agree to adhere to particularly high standards of transparency and unconditional continuous tradability of their shares.
- Language of publication: German and English, for foreign issuers solely English.
- All annual and quarterly financial statements with reporting periods must be prepared according to the IAS or US-GAAP.
SMAX / Small caps - High Standards
- Launched April 26, 1999.
- High-quality segment.
- A company's shares must have already been admitted to official trading or to the regulated market of the FWB to participate and continues to be listed and traded in their own market segment .
- Offers a suitable platform for small caps that are situated below the DAX®100 and outside the Neuer Markt to distinguish themselves from the broad mass by agreeing to voluntarily observe especially high standards of transparency and liquidity.
- The issuer must contract with a bank or financial service enterprise to act as the company's designated sponsor in XETRA®.
- All annual and quarterly financial statements with reporting periods must be prepared according to the IAS or US-GAAP.
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