Search Here.

Custom Search

Saturday, October 11, 2008

The Frankfurt Stock Exchange History

The Frankfurt stock exchange history is one of the oldest in the world.

Frankfurt was important for medieval fairs which enabled trading. An autumn fair is believed to have begun in the 11th century and in the 13th century a spring fair was added. This laid the foundations for Frankfurt to become a city which was important for commercial activity.

As the reputation of Frankfurt grew, traders from France and the Netherlands came to the city. Over time, a banking centre established itself. It is believed that 1585 is the year of the Frankfurt stock exchange's birth. Merchants came together to establish exchange rates between very regional currencies for ease. The merchants held their meetings in fields on the outskirts of the city.

The first rules were laid down in 1682 and it is now that trading in the way we know a market was begun. The Frankfurt stock exchange history was long even before a start that we would recognise in the modern world had begun.

It is believed that by volume it now serves over 90% of the German market. In total, there are more than 250,000 trades processed every day and over 70,000 listed securities.

The Xetra electronic trading system enables 15 countries to trade on a single platform. This has enabled very high levels of foreign investment into the Frankfurt stock exchange and it is believed that almost half of all market participants are based outside Germany.

Companies can list on the exchange in one of three different ways. They are called Prime Standard, General Standard or Entry Standard. EU rules govern the companies using either Prime or General Standard procedures. Those firms choosing Entry Standard face a lighter entry procedure and will be regulated directly by the exchange.


No comments: