Advantages of Listing at the Frankfurt Stock Exchange

Advantages of listing at Frankfurt Stock ExchangeFounded about 400 years ago, the Frankfurt Stock Exchange (FSE) hosts public companies from over 70 different countries, including the U.S.A. Over 60 % of daily trading volume originates from investors outside Germany.  Frankfurt Stock Exchange’s turnover rate is higher than the London Stock Exchange and in terms of volume, it is the third biggest stock exchange in the world, right behind the New York Stock Exchange and the NASDAQ. Frankfurt Stock Exchange is more lenient towards listings of foreign companies, and thus makes it more attractive to international businesses including U.S. based businesses.

A listing on the Frankfurt Stock exchange provides a large variety of advantages, including access to international high quality investors, a competitive regulatory framework, high visibility, cost efficiency and high liquidity

Frankfurt Stock Exchange is run by Deutsche Börse. Trading at Frankfurt Stock Exchange takes place in two ways, traditionally with brokers on the trading floor, and electronically by Xetra® trading platform. Xetra ® is the newest and most versatile trading platform in the world. It constantly scans the market to match buyers and sellers at a faster pace than the New York Stock Exchange’s platform. It also allows faster alert detections such as irregular buying and selling patterns caught in the market. More than 90% of trading is now done through Xetra ® with a fifth of them placed by private investors. Trading with Xetra® ensures fair pricing, low costs (no brokerage fee), high speed with fastest execution times, broad selection with over 6,000 securities, and flexibility on order execution. Today 260 market participants in 19 countries are connected to the system. At peak times Xetra processes up to 1.4 million trades per day.

Frankfurt Stock Exchange is the most cost-efficient stock exchange; they use the cheapest system for stock trading while still offering safe and secured trading experience. The initial costs to get listed are low. On-going costs are also much lower than listing in London, New York, and Japan. In addition to the low costs, listing process at the Frankfurt Stock Exchange is very fast with up to six weeks approval. For foreign companies, another benefit of being listed on Frankfurt Stock Exchange is an exposure to the European market whether in terms of raising capital or expanding consumer target. A listing on the Frankfurt Stock Exchange allows European investors to buy shares of foreign companies in local currency. European investors wanting to buy listed shares in the New York Stock Exchange or NASDAQ or any other exchange must pay a high brokerage fees and they are exposed to currency exchange risk, and thus reduce the amount of capital flowing from Europe.

There are two points of entry in the Frankfurt Stock Exchange: EU-Regulated Market and Regulated Unofficial Market (Exchange Regulated Market). The EU- Regulated Market is subject to European Union (EU) regulations, while the Regulated Unofficial Market (Open Market) is subject to Deutsche Börse’s regulations. While both segments serve the same purpose and list companies under the same Frankfurt Stock Exchange indices, the Regulated Market is more suitable for large and medium-sized enterprises. Smaller-sized enterprises are more suitable in the Open Market segment and then move from within to the Regulated Market.

Transparency in a stock exchange is of the utmost important criteria for investors. At Frankfurt Stock Exchange, there are four levels of transparency. First is Prime Standard, Second is General Standard, third is Entry Standard and fourth is First quotation Board.

The Frankfurt Stock Exchange has gained popularity since the Sarbanes-Oxley Act introduction to the U.S. financial market in 2002. Companies view Sarbanes Oxley Act as an excessive regulation and a 2008 survey indicated that initial public offerings were shifting to Europe and Hong Kong. Recent report in 2008 showed over 3,000 U.S. based companies had gone public at the Frankfurt Stock Exchange.

Going public at the Frankfurt Stock Exchange will increase the company’s public perception; it gives a certain credibility and prestige. This will also open up the door to European market as well as European capital. Combining that with rapid growth rate, higher earnings per capita, a strong Euro, and merger with the New York Stock Exchange, going public at the Frankfurt Stock Exchange is the right way to go.

Deutsche Borse offers you the fastest admission process in the world. Be it the General standard or the Prime Standard or the Entry Standard or the First Quotation Board.

SPACs–Special purpose Acquisition Corporations can be listed in all Deutsche Borse segments as well as traded by investors from all over the world via Xetra like any other shares. Main objective is to take over and subsequently merge with an already operating company with the proceeds of an IPO.

Indirect listing via SPAC, a listed SPAC offers companies an easy IPO route. Main purpose of a SPAC is to take over and subsequently merge with an already operating company or its subsidiaries within a time frame with the proceeds from an IPO. Solid companies with growth potential, needing a secure deal, saving time and money are candidates for this capital market instrument.

Financial Products

Total Capital Solutions Ltd has strong relations with various Financial Institutions and can help companies acquire letters of credit, bank guarantees, proof of funds and performance bonds.

Credit Facility

A Credit Facility is a flexible financing structure in which GPG commits to purchasing shares of common stock directly from a company, at prevailing market prices, over a multi-year period - contact us for more information.

Prospectus Preparation

Our legal associate can prepare Prospectus both in English and German and handle the BaFin or FSA approval process.