German Stock Exchange. Frankfurt Stock Exchange (FWB). Unique trading system Xetra

The history of the exchange dates back to the adoption by traders in 1585 of uniform exchange rates 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 German blue-chip companies 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. The Deutsche Boerse Group, created on its basis, was transferred under the control in 1993.

One of the oldest and most distinctive exchanges on the planet, it continues to fight 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 was very effectively reflected in 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 loansand also appeared official rate exchanges, 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 strong 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, 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 shoes), BMW, Volkswagen Group (automotive), Bayer (pharmaceuticals), Metro ( retail), Henkel (household chemicals). Due to the leading positions of these companies in the 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 won't be superfluous to mention what exactly is on Frankfurt Stock Exchangee in the eighteenth century began his first steps in trade Mayer Amschel Rothschild, who soon became a powerful banker and transferred his influence to his sons, the activities of whose descendants still have a wide public response.

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 trading in shares 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 rates currency exchange, 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 Frankfurt's financial trade.

Only in 1949 after World War II did the Frankfurt Stock Exchange finally establish 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 transactions in stocks, bonds, derivatives and synthetic 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 floors based on Xetra trading technology:

1. Xetra (XETR) is the primary market for German equities and ETFs. Exchange commodities and notes are also circulating 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 has also been used on 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), Malta (since 2012), the Cayman Islands Stock Exchange (since 2013 of the year) and Zagreb (since 2017).

Eurex Bonds, Deutsche Börse's trading platform for government bonds, relies on Xetra's trading technology. The Shanghai Stock Exchange's next generation trading system 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 order to sell or buy.
• 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 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.

Members of a premium listing, in addition to meeting the size of the business, must regularly conduct various educational events, conventions 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).
• The minimum market capitalization of the issuer must be € 1.25 million.
• 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 your own website.

Pros and cons of the exchange

On the Frankfurt Stock Exchange, Xetra has established itself as a reliable and secure trading system. 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 course of trading were to ensure the stability and availability of exchange trading, scalability and long-term growth of market activity.

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 of the 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, according to Russian law, this can only be done by a citizen of the Russian Federation with the status qualified investor (with more than 6 million rubles in the account).

You can also get access abroad: through the foreign “daughter” 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 stocks of companies, 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 as it is an interbank currency market. Moreover, 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 based on the value of shares of the first group of companies, which occupy places from 81 to 130 in terms of turnover on the 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 group of listing. Due to this, this index can be considered as an indicator of the "health" of the German economy. It brings together companies from various fields, including car manufacturers (for example Volkswagen AG), banks (Commerzbank AG) and others.

Index Investment Outlook

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 fundsthat 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 and usually expire in 3 months. Therefore, they are only used for buy and sell speculation or hedging. In theory, you can 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.

The history of the trading floor begins in 1585. After the adoption of uniform exchange rates by merchants in Frankfurt am Main, an exchange was created.

Its importance increased after the Second World War in the late 40s, when the trading floor took the 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. Turnover financial resources the Frankfurt Stock Exchange accounts for almost 90% of the trade turnover of all European exchanges. In 2017, by a decision of the European Commission, the merger of this trading platform with London Stock Exchange, which prevented market monopolization.

Stock indices

In addition to the main index, a number of its derivatives are used on the stock exchange; they are calculated based on the value of shares of the following categories:

• TecDAX. 30 companies from high-tech industries with high liquidity assets;
• 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 - general index, calculated on the basis of data on stock quotes of firms from various sectors of the economy.

Xetra trading system

The Xetra system allows you to carry out transactions for the purchase and sale of derivatives, shares, securities. 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 ones - ETFs, investment funds and others, as well as rarely used ETNc (securities) and ETSc (commodity index).

Major players

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

Frankfurt Stock Exchange - english Frankfurt Stock Exchange (German Frankfurter Wertpapierboerse, FWB), The 12th largest stock exchange in the world in terms of market capitalization. The Frankfurt Stock Exchange is based in Frankfurt am Main, Germany and is owned and operated by Deutsche Boerse, which also owns the European futures exchange Eurex and the clearing company Clearstream.

The Frankfurt Stock Exchange covers more than 90% of the German stock market turnover and has a significant share of the European market. In 2010, the exchange decided to stop conducting transactions on the trading floor, and the full transition to electronic trading was completed in 2011. Currently, trading is carried out exclusively through the Xetra system, and the former floor brokers now play the role of market makers.

The Xetra trading platform is already used by more than 14 international exchanges, such as the Vienna Stock Exchange since 1999, the Irish Stock Exchange since 2000 and the Budapest Stock Exchange since 2003. Approximately 47% of the 300 market participants on the Frankfurt Stock Exchange are foreign companies. As of November 2010, companies from more than 80 countries were listed on the exchange: 49% from North and South America, 31% from Europe (including Russia), 14% from Asia and 6% from Australia and Africa.

More than 250 international trading institutions and more than 4,500 traders operate on the Frankfurt Stock Exchange. Investors with direct access to the exchange represent 35% of the world's investment capital.

Indices on the Frankfurt Stock Exchange are: DAX, DAXplus, CDAX, DivDAX, LDAX, MDAX, SDAX, TecDAX, VDAX and EuroStoxx 50.

The automatic trading platform Xetra allows you to conclude trades from 09:00 to 17:30 with a closing auction from 17:30 to 17:35. In November 2003, the Late DAX was introduced with trading hours from 17:45 to 20:00, and in 2006, the X-DAX was introduced with trading hours from 17:45 to 22:00 (according to the American trading session).