Partial market in securities trading
When admitting shares to trading on FWB® Frankfurter Wertpapierbörse (the Frankfurt Stock Exchange), companies may choose between three market segments regulated by law: the Official Market, the Regulated Market and the Open Market (Regulated Unofficial Market).
The Official and Regulated Markets are EU-regulated markets, i.e. they are markets governed by public law (e.g. by the German Securities Trading Act – WpHG). The admission criteria and transparency requirements are prescribed by the European legislator. Companies in the Official and Regulated Markets fulfill the highest Europe-wide transparency standards and enjoy all advantages of a full exchange listing. The Official Market features particularly strict admission criteria and follow-on obligations. The Regulated Market is characterized by slightly less strict admission criteria and lower admission fees; it serves as a entry segment and pre-stage of the Official Market.
The Open Market (Unofficial Regulated Market) is a segment under private law; it is regulated by Deutsche Börse. This is where companies fulfill lower admission requirements and less follow-on obligations in order to include their shares in trading. Besides German shares, primarily foreign shares as well as bonds of German and foreign issuers, certificates and warrants are traded here.
These three admission segments provide the legal framework – as stipulated by the legislator in the Securities Trading Act – for the transparency levels Prime Standard, General Standard and Entry Standard.
Additional to the legal market segments, there are two smaller trading segments for foreign shares which are listed on stock exchanges abroad. International blue chips from Europe and the US can be traded in a special quality segment, Xetra Stars®. Securities from central and eastern Europe that are included in the Open Market at the Frankfurt Stock Exchange can opt for Newex as a trading segment.
Exchange-traded funds also have their own market segment, Xetra Funds. Both Xetra Funds and Xetra Stars are subject to particular trading and transparency standards.
