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The Exchange Council of the Frankfurt Stock Exchange has set up a working group to examine the criteria for the allocation of individual order books on the stock exchange. This was the decision made by the Council on Wednesday in light of the amendments that may have to be made to the German Exchange Act as the new European Markets in Financial Instruments Directive (MiFID) is implemented. The Exchange Council wants to further expand the established criteria; performance analysis, for example, has boosted execution quality and speed on the Frankfurt Stock Exchange, bringing these parameters up to a consistently high level. Today, the Frankfurt Stock Exchange offers best execution in over 120,000 securities.
The new allocation of individual order books, a process that was originally scheduled to take place on 1 January 2007, will then be performed on the basis of the working group’s assessment. The current regulations governing the allocation of individual order books on the basis of order book volume and the performance of the lead brokers were passed by the Exchange Council in mid-2005. On 1 July, the order books were then allocated for the subsequent 18-month period, which will expire on 31 December 2006. In a ruling passed at the end of September, the Higher Administrative Court of the Federal State of Hesse criticized the fact that the Exchange Regulations did not specify the criteria that apply to performance analysis, although it did not comment on the criteria themselves.
