DAX® , Xetra®, Eurex®, Clearstream and, of course, its own IPO have been the milestones for Deutsche Börse since 1988. Over this period, the company has changed from a mere market-place organizer for share trading to an international service provider to the securities industry covering the entire process chain of exchange trading.

Deutsche Börse offers its customers all the products from trading through to the settlement of transaction; from the provision of information products to system development. The clearest signal of this change was the IPO of Deutsche Börse AG on 5 February 2001.

Deutsche Börse introduces the DAX

In 1988 Deutsche Börse introduced the DAX. Today, it is one of the most well-known blue-chip indices in the world. With such a successful index behind it, the entity under public law, FWB® Frankfurter Wertpapierbörse (Frankfurt Stock Exchange), was able to become Deutsche Börse AG in 1993 which has been the operating body of the Frankfurt Stock Exchange since then.

Its success in recent years is not due to the change in the company structure alone. Back in 1969 Deutsche Börse began processing some of its data electronically. With the launch of Xetra in 1997, the company heralded in a completely new exchange era. Since then, floor trading has diminished in importance. With the fully electronic Xetra trading, the exchange is now wherever there are screens. Xetra has established itself as one of the leading trading systems in the world.

Subsidiaries drive growth

The subsidiaries Eurex, Clearstream and Deutsche Börse Systems drive the growth and internationalization process of Deutsche Börse Group. Eurex is the largest market organizer for the trading and settlement of futures and options in the world. With Clearstream Deutsche Börse offers the settlement of securities transactions and the safekeeping of securities. Deutsche Börse Systems builds and operates trading systems, supporting Deutsche Börse’s global network of participants.

Deutsche Börse has also proved its innovation skills as a stock market organizer. In March 1997 it established Neuer Markt®, thereby giving smaller growth companies completely new opportunities for raising equity. Transparency requirements were particularly stringent for this new market segment.

Deutsche Börse reforms the stock market

In response to the Fourth Capital Market Promotion Act, Deutsche Börse reformed the German stock market. Since 1 January 2003, issuers on the Frankfurt Stock Exchange have been able to choose between a listing in either Prime Standard or General Standard. Whereas Prime Standard integrates the stringent transparency requirements of Neuer Markt, the minimum statutory requirements apply in General Standard. Neuer Markt was closed. In March 2003, TecDAX® was launched as the new blue-chip index for technology shares.

With the Introduction of Entry Standard within the Open Market in October 2005, a new segment for small and medium-sized companies was created. Their shares can be included in exchange trading while meeting less stringent formal requirements.

New products and initiatives for private investors

In April 2000, the market segment XTF® was introduced, making it possible to continuously trade index funds at a stock exchange in Germany for the first time. Since November 2000, actively managed funds have also been listed in the market segment Xetra Active Funds.

New upper limits on brokerage fees for floor trading were implemented in April 2005 for warrants, knock-outs, certificates and reverse convertibles orders. Since July 2005, private investors have been guaranteed no-spread trading in most DAX, MDAX®, TecDAX and SDAX® titles at the Frankfurt Stock Exchange.

As of April 2006 Deutsche Börse has covered international markets in the new index family DAXglobal®. With the introduction of ETC Exchange Traded Commodities in November 2006, investors gain access to a broad range of euro-denominated commodities for the first time.

In April 2007 the Frankfurt Stock Exchange reorganized bond trading and now offers trading in three segments: the standard bond segment, the quality segment, select bonds, and the premium segment, prime bonds. The segments differ in terms of execution time, spread and quote traffic.

Modernization of the trading floor

In October 2006, reconstruction works began on the main trading floor at "Alte Börse", the older stock exchange building. After almost five months, the refurbishment was completed in the end of February 2007 and the floor of the Frankfurt Stock Exchange was reopened. The main trading hall now meets the changed needs of the lead brokers, and it has been given a new, modern look.