On 1 October 2008, Deutsche Börse is to launch a new sub-segment for the Open Market. In the future, all initial listings in this primary market segment will be grouped in the First Quotation Board.
The launch of the new sub-segment is Deutsche Börse’s response to the increasing number of initial listings in the Open Market. National and international companies are increasingly using the Open Market as a fast and cost-effective way of offering their shares for trading without any subsequent admission requirements. Particular benefits for companies include the high level of tradability and ongoing valuations of their shares. The majority of companies included in the First Quotation Board are based abroad (61 percent).
With the launch of the First Quotation Board, Deutsche Börse is structuring the Open Market, allowing initial listings to be identified more easily and clearly. In the future, the master data of all companies will include the labels “First Quotation Board” for primary listings or “Secondary Quotation Board” for companies whose home market is not in Frankfurt.
The Open Market is the second statutory market segment after the EU-regulated market, and is organized under private law. The admission of stocks to exchange trading in this segment must be applied for by a participant admitted to the Frankfurt Stock Exchange. In the Open Market there are only a few formal inclusion criteria and no subsequent requirements for the issuer. The segment is aimed at eligible investors that are in a position to assess and bear any significant risks in connection with an equity investment in the Open Market.
The 392 companies already being traded which have opted for an initial listing in the Open Market will be included in the new sub-segment accordingly.
Besides German stocks, foreign stocks, bonds from German and foreign issuers, certificates and warrants are traded in the Open Market of the Frankfurt Stock Exchange. Stocks from more than 60 countries are listed in the Open Market.
