Shares in one of the selection indices of Deutsche Börse must be continuously tradable. The underlying criterion is the liquidity of the security. Designated Sponsors secure higher liquidity by quoting binding prices for buying and selling the shares. The probability that placed orders are executed increases considerably. Based on the principle ”liquidity attracts liquidity“, actively supported shares are more popular with investors.
Target Group Issuers listing their shares on Xetra®
Applications Designated Sponsoring/Research, IR support in disclosure duties, etc. (by agreement)
Price Individual agreement between issuer and Designated Sponsor