Posts filed under 'World Share Market'
A Brief Introduction to the German Stock Exchange
The entire German Stock Exchange consists of eight stock exchanges situated in different parts of the country. All of these Stock Exchanges are enormously potent and significant to the world economy.
Being the largest in Europe, the German economy is a close third behind those of the US & Japan. The World Trade Organization has declared Germany to be the largest exporter of goods in the world, including the exports to other Eurozone countries. Germany ranks among the wealthiest of nations. In terms of Purchasing Power Parity, Germany is ranked fifth. Therefore it is not surprising that the German Stock Exchange is one of the most influential Stock Exchanges of the world to determine world trade and commerce.
Compositions of the German Stock Exchange
- Frankfurt Stock Exchange (FWB Frankfurter Wertpapierbörse) based in Frankfurt and owned by Deutsche Börse is the largest German Stock Exchange . Having a share in turnover amounting to around 85 percent, it is one of the biggest “securities” (stocks, bonds, corporate participating certificates, etc.) trading centers of the world. The major trading index (indices) in Frankfurt is DAX or DAX 30 (Deutsche Aktien Xchange 30, earlier known as Deutscher Aktien-Index 30).
- Börse Stuttgart or the Stuttgart Stock Exchange is the second-largest German Stock Exchange with many financial powerhouse companies such as Allianz Life Insurance, LBBW Bank or Wustenrot enlisted upon it.
- Börse Berlin-Bremen with its headquarters in Berlin-Charlottenburg, was officially formed in 2003. It came into being when the Berliner Börse AG (or Berlin Stock Exchange) merged with Börse Bremen.
- The BÖAG Börsen AG, looking over trade and commerce in both Hamburg & Hanover, was officially founded when the Hamburg and Hanover Stock Exchanges merged on September 1, 1999.
- Hamburger Börse (Hamburg Stock Exchange) in Hamburg is the oldest German Stock Exchange , established in 1558. Basically it has two broad divisions , to make business more organized. One part of it consists of:
- The Allgemeine Börse or the general exchange which is generally utilized by property companies and estate agents, from which all other individual exchanges emerged like the .
- the Stock Exchange
- the Insurance Exchange
- the Grain Exchange
- the Coffee Exchange
While the other part of this German Stock Exchange consists of
- The Hamburg Chamber of Commerce Internet-based information exchanges or in short the Information Exchanges.
- Börse München in Munich may have been officially formed in 1869, but it dates back to the 1830s. This German Stock Exchange merged with the Augsburg Stock Exchange in 1935 and was then known as the Bayerische Börse. But in 2003, following the convention of naming Stock Exchanges after the cities in which they are based, this German Stock Exchange once again came to be known as the Börse München.
- Börse Düsseldorf, the Stock Exchange of Düsseldorf.
- Eurex - based in Frankfurt (owned by Deutsche Börse and SWX - Swiss Stock Exchange) is an European Electronic Exchange that comes a close second after the Chicago Mercantile exchange, as a derivative exchange in terms of volume.
The index of the German Stock Exchange - DAX, rose by a significant 21 percent in this current fiscal year. By far much ahead of all other developed markets in every corner of the earth.
May 31st, 2008
A brief introduction to Frankfurt Stock Exchange
Established on the orders of Emperor Louis the German to hold free trade fairs, the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse in German) now known as the Deutsche Börse AG, ranks amongst the best trading centers of securities (stocks, bonds, corporate participating certificates, etc.) in the world today.
Historical Evolution of the Frankfurt Stock Exchange
The third Stock Exchange in the world, founded in 1585 after the Stock Exchanges of London and Paris, the Frankfurt Stock Exchange is managed by Deutsche Börse which owns it along with the European Electronic Exchange - Eurex and the clearing company Clearstream.
Possibly the biggest player in the European market with the trading index DAX having risen by a spectacular 21 percent in this current financial year (2007) alone thereby overtaking every other developed market in terms of profits acquired, the Frankfurt Stock Exchange enjoys around 85 percent of the total turnover of the German market. A fabulous turnaround from the turbulent days of
the integration of the West Germany with East Germany in the 1990s and the recession of 2003.
Nature of Trading in the Frankfurt Stock Exchange
The Frankfurt Stock Exchange may lose on the floors of the market during physical trading but it gains heavily in “Xetra” or Exchange Electronic Trading system, an advanced business procedure dealing in securities which is enlarging by the day and is based on the Eurex system.
Indices used in the Frankfurt Stock Exchange
The major trading index of the Frankfurt Stock Exchange is DAX or DAX 30 (Deutsche Aktien Xchange 30, earlier known as Deutscher Aktien-Index 30). With the prices derived from the global electronic securities trading system -Xetra, DAX or DAX 30 (as the name suggests) is a Blue Chip stock market index comprising of the 30 major German companies enlisted on the Frankfurt Stock Exchange .
Other indexes (indices) that also function in the Frankfurt Stock Exchange are
- DAXplus
- CDAX
- DivDAX
- LDAX
- MDAX
- SDAX
- TecDAX
- VDAX
- EuroStoxx 50.
Renowned DAX Companies of the Frankfurt Stock Exchange
- Adidas
- Volkswagen
- BMW Daimler Chrysler
- Siemens
- Deutsche Bank
- Lufthansa
- Allianz
- Bayer
The London Stock Exchange rejected a £1.35bn takeover bid from the Frankfurt Stock Exchange operator Deutsche Börse in December 2004. Both the Stock Exchanges were to merge to form ‘iX’ in 2000 that did not materialize under opposition from UK Brokers to add to a competitive bid from the OM Group which controls the Stockholm Stock Exchange.
The Frankfurt Stock Exchange is worthy of its position as the third-largest trading place for stocks also following up as the sixth in the world in terms of market capitalization.
May 31st, 2008
The Dubai Stock Exchange was founded on September 29, 2004. it is a limited liability company inside the Dubai International Financial Center. The Dubai Stock Exchange became fully functional after it received a license from the Dubai International Financial Center in September 26, 2005. There was no looking back after that. large companies such as the Credut Suisse, Deutsche Bank, HSBC , UBS AG and the Citibank.
The Dubai Stock Exchange started trading in index linked equity products . These products were also traded in other exchanges.
The Dubai Stock Exchange is fast growing and its growth is reflected in the increasing number of members in its board. It started with four members but now the membership has increased to 13. The Dubai International Financial Exchange aims at increasing the market capitalization by including 10 to 15 Initial Public Offerings .
The Dubai Stock Exchange offers the following services to its participants :
- One stop solution to trading
- Clearing and Settlement through the Electronic AtosEuronext Market Solutions NSC system. The members do not use a specific trading terminal as a technical connection is already is offered.
- The Dubai Stock Exchange lists securities from various countries.
- With the help of the Dubai Stock Exchange the international investors can invest in Middle East, North and South Africa, Turkey, Central Asia and India.
- To ease the transactions of the foreign investor, trading is denominated in the US dollars. Trading is also allowed in Euros and Sterlings on special requests.
- There are no limits on foreign ownership which is quite different from other independent exchanges.
- The Dubai Stock Exchange basically unites the Middle East Markets and the markets in London, Singapore and Hong Kong.
Products and services issued by the Dubai Stock Exchange
The listed products of the Dubai Stock Exchange are
- Ordinary shares listed by Kingdom Hotel Investments
- Global Depository Shares issued by Investcom
- The foreign investors participating in the Dubai Stock Exchange have the opportunity to invest in the Gulf Cooperation Council.
May 31st, 2008
In the year 1927,the Luxembourg Stock Exchange was created. Since the time Luxembourg Stock Exchange was founded it has been successful in acquiring a particular ability of trading and listing in securities from an extended chain of areas. With more than four thousand issuers across 100 countries and more than eighty years of experience Luxembourg Stock Exchange copes with capital market players` demands through better services and outputs along with secure fast and flexible processes. The Luxembourg Stock Exchange entered into an understanding with Euronext in November 2000.
The broad listing opportunities are offered through two ways in Luxembourg stock Exchange . They are:
- The main market in the European Union list of regulated markets is the Main Regulated Market or Bourse de Luxembourg. A European passport is offered by Luxembourg Stock Exchange who looks to expand their chance for international investors.
- The Euro MTF market or the exchange-regulated market ,inaugurated in the year 2005 for those issuers who do not want European Union Passport and for those also who do not set up financial information according to IFRS or equal accounting standards.
No restrictions are applied on the security types to be listed on both the exchange regulated market and the main market. The issuers in accordance to their chosen market, just need to follow the requirements that it comprises of. Official responsibilities are applicable for listings in both markets.
Key features and requirements needed to get enlisted in Luxembourg Stock Exchange main market:
- A system of training along with a lasting execution place while trading. Transparency features for both pre and post trades for the securities enlisted in accordance with IFRS.
- Simple and easy method for offers of securities across the border.
- The prospectuses should be looked after by the CSSF.
Key features and requirements needed to get enlisted in Luxembourg Stock Exchange , exchange regulated market:
- Luxembourg Stock Exchange in association with MiFID directive operate MTF or Multilateral Trading Facility
- Conditions for listing are very much the same compared to the main market of Luxembourg Stock Exchange with same fees for listing.
- Trading systems are the same with a lasting execution venue keeping the pre-trade and post-trade transparency.
- The Luxembourg Stock Exchange has two stock indexes. They are:
- Luxembourg Stock Price Index is adjusted for normal transactions other than dividends.
- Luxembourg Stock Return Index is adjusted for payments in dividends and including the dividends that are paid to the current market.
May 31st, 2008
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