Added: 02/13/2006 |
Frankfurt stock exchange is one of the biggest exchange places in the worldFWB Frankfurter Wertpapierb?rse (the Frankfurt Stock Exchange) is one of the biggest and most efficient exchange places in the world. Deutsche B?rse AG owns and operates the Frankfurt Stock Exchange, an entity under public law. In this capacity it ensures the smooth functioning of exchange trading. Deutsche B?rse also owns the European futures exchange Eurex and clearing company Clearstream.
With a share in turnover of around 90 percent, the Frankfurt Stock Exchange is the largest of the eight German exchanges.
The Frankfurt Stock Exchange facilitates advanced electronic trading, settlement and information systems. Thus, it is able to meet the steadily growing requirements of cross-border trading. Besides traditional floor trading, it has in Xetra one of the leading electronic trading platforms in the world. With the launch of Xetra in 1997, the Frankfurt Stock Exchange succeeded not only in strengthening its own competitive position. Only through Xetra, the German stock market created attractive framework conditions for foreign investors and market participants. Half of the 300 market participants in Frankfurt come from abroad.
History
The origins of the Frankfurt Stock Exchange go back to the 9th century and a free letter by Emperor Louis the German 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 exchange rates. During the following centuries Frankfurt developed into one of the world's first stock exchanges - next to London and Paris. Bankers like Mayer Amschel Rothschild and Max Warburg had substantial influence in Frankfurt's financial trade. In 1874 Frankfurt Stock Exchange moved into its new building at B?rsenplatz.It was only in 1949 after World War II that the Frankfurt Stock Exchange finally established as the leading stock exchange in Germany with consequently incoming national and internatinal investments.
During the 1990s the Frankfurt Stock Exchange was also bourse for the Neuer Markt (German for New Market) as part of the world wide dot-com boom.
In 1993 the Frankfurter Wertpapierb?rse (Frankfurt Stock Exchange) became Deutsche B?rse 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 in 2002. Since then the exchange profits from the presence of the European Central Bank in Frankfurt am Main. In 2002 and 2004 Deutsche B?rse was in advanced negotiations to take over London Stock Exchange, which were broken off twice.
The Frankfurt Stock Exchange is an international trading center. This is also reflected in its member structure. Some 140 of around 300 market participants come from abroad.
Today, with a total turn over of Euro 5.200 Billion the Frankfurt Stock Exchange strenghtens its position as the world's 3rd largest trade-place for stocks and the world's 6th largest by market capitalization.
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