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Frankfurt’s certificate exchange is now ten years old. To mark the occasion, today’s trading on the Frankfurt Stock Exchange was opened by ringing the traditional stock exchange bell. Currently more than 1.5 million listed products such as certificates and warrants can be traded in Frankfurt. Since April, investors have been able to create their own certificates with almost no restrictions using the “ZERTIfigurator” online construction kit. The number of products was around 250,000 at when the exchange was founded in 2007.
Investors’ needs have changed over the last ten years of certificate trading. A completely new portfolio of order types, designed to support investors in their investment strategies, has recently been added, including, for instance, “trailing stop”, “order-on-event” and “one-cancels-the-other” types. In addition, “direct exchange trading” has been available since the end of 2015. This type of trading allows investors to send a price query to the exchange and immediately receive an indicative price in return that can then be confirmed or rejected with a simple click. “This fairly new order type was devised in response to investors’ requests. It combines the security and transparency of exchange trading with the advantages of direct trading,” said Florian Claus, member of the Executive Board of Börse Frankfurt Zertifikate AG.
The bonus certificate has defended its top ranking as certificate trading’s favourite product every year. “The high demand for factor certificates also shows that many investors are prepared to assume greater risk and are constantly observing the market,” said Simone Kahnt-Eckner, also a member of Börse Frankfurt Zertifikate AG's Executive Board. Typical German investors tend to be more conservative. “But those who invest in structured products usually have more investment experience and know that greater risks also mean greater opportunities,” she added. “That’s because leverage products can hedge a securities account as well as increase its yields – especially in the current low interest rate environment.”
You can find additional information about certificates on Börse Frankfurt at http://en.boerse-frankfurt.de/certificates.
