How to take your company listed on the Frankfurt Stock Exchange

De Micco & Friends is looked to by both - issuers and investors - as a partner in the global capital markets for assistance in all kind of private equity and capital market transactions in Europe.

Some facts about the Frankfurt Stock Exchange

  • The Frankfurt Stock Exchange receives massive exposure to investor capital with more than 250 international trading institutions and more than 4,500 traders worldwide. Investors directly connected to the Frankfurt Stock Exchange represent a full 35% of the world's investment capital.
  • All shares are free trading. There are no restricted shares, even for officers and insiders.
  • For an entry level stock exchange, the Entry Standard is an extremely well respected stock exchange, but is also more selective than some others. 
  • The Frankfurt Stock Exchange Entry Standard is an unregulated market, which means it is regulated by the exchange itself.
  • The Entry Standards segment requires a 10% public float. 
  • The General and Prime Standard segments require a 25% public float.
  • No Sarbanes-Oxley requirements on the Frankfurt Stock Exchange.
  • Corporate bond listings/offerings are possible on all segments of the exchange (the Entry Standard, General Standard and Prime Standard segments).
  • The Frankfurt has more liquidity/trading volume than the all exchanges in the world except the NYSE and NASDAQ.
  • An IPO on the Frankfurt Stock Exchange is one of the fastest in the world.
  • Public offerings can be conducted with or without an underwriter with an approved prospectus.
  • The Frankfurt Stock Exchange is one of the most internationally accepted exchange in the world. Trades executed by international investors on Xetra have increased continuously in recent years and, as of the end of 2010, more than 65% of the total trades were from countries outside Germany, with more than 22% from US investors and more than 24% of from UK investors.
  • The Frankfurt Stock Exchange is one of the most highly respected listing exchange in the world for international listings. - Companies from more than 80 countries are listed on the Frankfurt Stock Exchange...more than 40% are from North America, 31% from Europe (including Russia), 14% from Asia and 6% from Australia and Africa.
  • Germany is home to the largest capital market conference in Europe, with over 5,500 participants and more than 100 exhibitors every year.
  • The sophisticated Xetra electronic trading platform was designed for the Frankfurt Stock Exchange and is available for electronic trading for all Frankfurt listed companies.with a presence in 14 European countries plus the United States.
  • After the BREXIT, Frankfurt will be the most important capital market place in Europe. Many banks fromt UK are movimg right now to Frankfurt!

If your company is already listed on a foreign stock exchange that is considered a "Like Exchange" by the Frankfurt Stock Exchange, you can Dual List on the Frankfurt Stock Exchange very easily and affordably. Dual listing your company means that it would be listed on both your current stock exchange and the Frankfurt Stock Exchange. "Dual listings", sometimes called "Cross-Border listings", "Cross listings", or "Secondary listings", literally opens an entirely new world of funders, investors, liquidity and potential shareholders. If your company is already publicly listed on one of the many Frankfurt Stock Exchange approved 'like exchanges', then we can dual list your company on the Frankfurt Stock Exchange extremely fast (within two weeks max) and affordably. Contact us now using the form below to get a price quote for your Frankfurt Stock Exchange dual listing.

The Frankfurt Stock Exchange is the world's third largest stock exchange behind only the NYSE and NASDAQ and is often referred to as the ‘International Stock Exchange’. Over 3,300 North American companies are already listed on the Frankfurt Stock Exchange. Dual listing benefits include the following:

Dual Listing a company on the Frankfurt Stock Exchange gives the company the ability to reach the huge European investor market that are interested in the stock of foreign companies like yours, with the convenience of trading locally.

A Dual Listing provides a new opportunity for public companies like yours to benefit from the growing opportunities abroad. Dual listings can also vastly improve a company’s reputation as a global player in the International market. A dual listing on the Frankfurt exchange exposes your company to over 500 million European Union residents!.

Dual Listing Benefits

  • Improved image, reputation and prestige as a global player in the International market.
  • Greatly expand the ability to raise equity or debt financing.
  • Increased trading volume and liquidity. The Frankfurt Stock Exchange is the world's 3rd most liquid market, behind only the NASDAQ and NYSE.
  • Improved shareholder relations.
  • Vastly enhance visibility among overseas investors and consumers.
  • Tap into European retail and institutional funds.
  • Benefit from the ever-changing global landscape toward equity investing.
  • The Frankfurt Stock Exchange offers one of the most advanced electronic trading capabilities through its highly advanced electronic trading platform, Xetra®.
  • Xetra® enables cross-border trading for international investors whereby orders from any point in the globe are automatically inputted into the order book on the central computer.
  • Nominal Ongoing Cost - The ongoing cost to maintain your dual listing on the First Quotation Board Segment of the Frankfurt Stock Exchange is less than 3,000 per year.

The cost and the timing

The entire process of dual listing on the Frankfurt takes approximately one week, including obtaining the ticker symbol, and the total cost is less than € 100,000, including all fees, legal, market maker, exchange fees, etc.

All we need to get started is the company name, primary listing stock exchange and trading symbol. Before we contract with the company, we will first conduct a preliminary due diligence to determine if we will take the company on as a client (takes only one day). Next we obtain a pre-approval for the dual listing (1 to 3 days). Once we obtain the pre-approval, we will prepare a final price proposal for the dual listing.

Please don't hesitate to contact us if you have any questions about a dual listing on the Frankfurt Stock Exchange. We look forward to hearing from you.

Frankfurt Stock Exchange Entry Standard listing requirements

The Entry Standard

The Entry Standard segment is the entry level segment for primary (first/only) listings on the Frankfurt Stock Exchange. The following are the general requirements for listing the Issuer on the Entry Standard segment of the Frankfurt Stock Exchange Regulated Unofficial Market (Exchange Regulated Market), hereinafter “Frankfurt Stock Exchange” plus XETRA:

  • Minimum age of company 2 years, minimum 30 shareholders;
  • Company must provide evidence of a minimum nominal capital of €750.000 (EUR or its equivalent in another currency at the exchange rate on the date of confirmation) paid-in-capital and the nominal value of the shares must not be less than €1.00 (one euro);
  • 10% minimum free float shares
  • Audited financials (National GAAP or IAS/IFRS US-GAAP, et. al.), prepared locally, for the year prior three years, or less if the company is not three years old;
  • Approved Prospectus
  • And other listing documents, forms and requirements.

Estimated time to Listing approximately 24 weeks.

The Frankfurt Stock Exchange Entry Standard is an very high quality entrance level stock exchange and, as such, the approval process is very much a case-by-case basis.

Please contact de Micco & Friends if you are interested in listing on the Entry Standard segment of the Frankfurt Stock Exchange.

Frankfurt Stock Exchange for Chinese Companies

De Micco & Friends has specialized expertise and experience with Chinese company listings on the Frankfurt Stock Exchange. We are very familiar with the correct WFOE holding company structure required and have Chinese speaking lawyers.

The business generated by Deutsche Boerse in China has been increasing steadily for years and will continue to grow organically while Deutsche Boerse Group is simultaneously developing new opportunities in areas such as Listing Chinese Companies, Trading & Clearing, Custody & Settlement and Market Data & Analytics. Besides a number of Memorandums of Understanding (MOU) signed with various Chinese partners, Deutsche Boerse has also taken concrete steps in the following fields:

Deutsche Boerse and its subsidiary the Frankfurt Stock Exchange continue to strongly expand its relations with China in order to be an effective and reliable partner for Chinese companies. For example, it organizes capital market events and listing seminars in China in collaboration with its listing partners, and is expanding its listing partner network to include Chinese intermediaries and capital market participants.

The XETRA Trading platform

Deutsche Börse’s own XETRA electronic trading platform is widely known as the most efficient and flexible automated trading system for fully electronic securities trading in the world. China’s largest stock exchange, the Shanghai Stock Exchange, has licensed Deutsche Börse’s Xetra electronic trading platform, which Accenture will adapt and implement specifically for the Chinese market. Xetra’s trading technology was chosen on the basis of its performance record of high scalability, speed, reliability, quality of core technology and the ease with which it can be adapted in other markets.

Clearing & Settlement

China Government Securities Depository Trust & Clearing Co. Ltd (CDC) has opened an omnibus account with Clearstream, which is owned by the Deutsche Börse Group. The qualified members of CDC are now able to settle and safe keep international securities via CDC’s account with Clearstream. The partners are discussing further cooperation in the field of collateral management.

Market Data & Analytics

Deutsche Börse and the China Securities Index Company (CSI), a joint venture between the Shanghai Stock Exchange and the Shenzhen Stock Exchange, signed a sales cooperation agreement on September 25, 2007. Under the terms of the agreement, Deutsche Börse acts as an exclusive sales partner for the CSI300 Index’s license of the ETF issuer in Europe.

Why the Frankfurt Stock Exchange?

For approximately ½ the cost of going public on the OTCBB, Chinese companies can go public on the Frankfurt Stock Exchange. Moreover, companies that trade on the Frankfurt Stock Exchange do not have to deal with the often criticized and overly burdensome requirements of Sarbanes-Oxley. This in itself is why many companies from all over the world are choosing the Frankfurt Exchange over the U.S. stock exchanges.

For these reasons and many more, the Frankfurt Stock Exchange listing is fast becoming the better choice for Chinese Companies that want to go public.

Please contact De Micco & Friends for any further questions.

Frankfurt Stock Exchange General Standard listing requirements

Please note that these listing rules are only a summary and it is important to understand that there are other 'unwritten' listing rules and requirements as well which are not published . As such, the rules and requirements provided herein are a summary of the technical Frankfurt Stock Exchange listing requirements and should only be relied upon in conjunction with a specialized Frankfurt Stock Exchange Main Market listing advisor such as De Micco & Friends .

Why the General Standard Segment?

The Frankfurt Stock Exchange (Deutsche Börse) is comprised of three primary listing segments, two of which are governed by the European Union transparency standards and one of which is governed by the exchange itself.  These 3 primary listing segments of the Frankfurt Stock Exchange are as follows:

  1. Entry Standard 
  2. General Standard
  3. Prime Standard

The Entry Standard segment is governed by the Regulated Unofficial Market (exchange regulated) while the General and Prime Standard segments are governed by the European Union. The Regulated Unofficial Market is also referred to as the 'unregulated market' or 'exchange regulated market' because, as the names imply, it is regulated only by the Frankfurt Stock Exchange itself, not by the European Union transparency standards.

This difference in governing bodies between the Entry Standard on one side and the General and Prime Standard on the other results in an interesting paradox which is significant to companies seeking admission to the Frankfurt…contrary to logic and popular belief, companies that would otherwise fail to list on the Entry Standard can often be successfully listed on the General Standard. This is due to the fact that, unlike the Entry Standard, the General Standard has no soft criteria requirement (e.g. minimum revenue, employees etc.). Thus, a big advantage of the General Standard over the Entry Standard segment (other than the enhanced reputation) is that, for the General Standard, the admission cannot be refused, so long as all technical requirements are fulfilled.  This is not true of the Entry Standard segment.  Moreover, the General Standard does not require 1.00 per share nominal value for each share issued, like the Entry Standard.

While the cost to list is a bit higher on the General Standard than the Entry Standard, the enhanced reputation and, more importantly, the ensured success of the admission are well worth it. Additionally, for the General and Prime Standard, the audited financial report will likely be more scrutinised, so companies seeking admission should employ a high quality auditor.

The following are the general requirements for listing the Issuer on the General Standard segment of the Frankfurt Stock Exchange EU Regulated Market (hereinafter “Frankfurt Stock Exchange”) plus XETRA.

Prospectus

Required (must be approved by German BaFin)

Free Float

25% only applies to equity listings / not required for bond listings

Shareholders

30+

Minimum history

Three (3) years

Minimum equity

EUR 1,250,000

Shares

At least 10,000 shares (to be) issued

Audited historical financials

3 years

Other financials

P&L, addendum and cash flow statement

Accounting Standard

International Financial Reporting Standards (IFRS)

All of our Frankfurt Stock Exchange listings are conducted by our German licensed lawyer.

Estimated Time to Listing—Approximately 20 to 28 weeks.

Contact De Micco & Friends if you are interested in listing on the General Standard segment of the Frankfurt Stock Exchange.

Frankfurt Stock Exchange Listing Requirements

The Frankfurt Stock Exchange (Deutsche Börse) offers access to both the Regulated Market and the Regulated Unofficial Market (Open Market, new: "Scale"). The Regulated Unofficial Market is also referred to as the exchange regulated market because, as the name implies, it is regulated only by the Frankfurt Stock Exchange itself. Within the regulated market and the regulated unofficial market, there are three listing segments which serve the different needs of issuers and investors. The three segments beginning with the segment with the simplest requirements are as follows:

Regulated Unofficial Markets (exchange regulated and governed by private law):

1. Quotation Board (now only for dual listings for companies already listed on a “like exchange”

2. Entry Standard (note that admission to the First Quotation Board for primary listings has been closed permanently)

EU Regulated Markets (based on the European Union transparency standards):

3. General Standard

4. Prime Standard

Listing and Ongoing Requirements

I. Former: Quotation Board

The Quotation Board was only for dual listings for companies already listed on a stock exchange considered a "like exchange" by the Frankfurt Stock Exchange.

II. Entry Standard Segment

The Entry Standard segment is the entry level segment for primary (first/only) listings on the Frankfurt Stock Exchange. The following are the general requirements for listing the Issuer on the Entry Standard segment of the Frankfurt Stock Exchange Regulated Unofficial Market (Exchange Regulated Market), hereinafter “Frankfurt Stock Exchange” plus XETRA:

• Minimum age of company—2 years

• Minimum 30 shareholders;

• Company must provide evidence of a minimum nominal capital of €750.000 (EUR or its equivalent in another currency at the exchange rate on the date of confirmation) paid-in-capital and the nominal value of the shares must not be less than €1.00 (one euro);

• 10% minimum free float shares • Audited financials (National GAAP or IAS/IFRS US-GAAP, et. al.), prepared locally, for the year prior three years, or less if the company is not three years old;

• Approved Prospectus

• And other listing documents, forms and requirements.

• Our law firm, FSE Law GmbH (www.fselaw.com), conducts all of our listings and prospectuses.

Estimated Time to Listing approximately 30 weeks.

The Frankfurt Stock Exchange Entry Standard is an extremely high quality entrance level stock exchange and, as such, the approval process is very much a case-by-case basis. Companies wanting to list on the Frankfurt Stock Exchange should consider the following unwritten requirements:

• Typically, we recommend that the company have at least €30,000,000.00 in revenues, but there is no requirement as such;

• The company should be profitable; • The company should have strong 5-year revenue and net profit growth prospects;

• The company should be operating in an industry that has strong growth prospects;

• The company’s financial audit should be completed by a top 5 or 6 auditing firm;

• The company should have a very good website, business plan and other corporate documents which present the company in the most favorable light possible. The company must put its best foot forward, not only for the exchange, but also for potential investors;

• If a company CEO travels to meet with the decision makers at the Frankfurt Stock Exchange and can convince them that they are a great company with great prospects, then such company might be approved with very little revenues and/or profits. Again, the approval or denial by the stock exchange is on a case-by-case basis.  

II. General Standard Segment

The following are the general requirements for listing the Issuer on the General Standard segment of the Frankfurt Stock Exchange EU Regulated Market (hereinafter “Frankfurt Stock Exchange”) plus XETRA.

• Minimum age of company—3 years (exemptions possible);

• Minimum issuing volume—minimum market capitalization of €1.25 million;

• Minimum 30 shareholders;

• Equity capital minimum of €1.25 million (cash at some time in past or present);

• Free float minimum of 25%;

• Nominal issuing volume minimum of 10,000 shares;

• EU Prospectus (underwritten by company + bank/FWB-member);

• 3 years audited financials—IAS/IFRS (or adequate for Non-EU issuers);

• And other listing documents, forms and requirements.

• Our law firm, FSE Law GmbH (www.fselaw.com), conducts all of our listings.

Estimated Time to Listing—Approximately 28 to 32 weeks.

III. Prime Standard Segment

The following are the general requirements for listing the Issuer on the Prime Standard segment of the Frankfurt Stock Exchange EU Regulated Market (hereinafter “Frankfurt Stock Exchange”) plus XETRA.

• Minimum age of company—3 years (exemptions possible);

• Minimum issuing volume—minimum market capitalization of €1.25 million;

• Minimum 30 shareholders;

• Equity capital minimum of €1.25 million (cash at some time in past or present);

• Free float minimum of 25%;

• Nominal issuing volume minimum of 10,000 shares;

• EU Prospectus (underwritten by company + bank/FWB-member);

• 3 years audited financials—IAS/IFRS (or adequate for Non-EU issuers);

• And other listing documents, forms and requirements.

• Our law firm, FSE Law GmbH (www.fselaw.com), conducts all of our listings.

Estimated Time to Listing—Approximately 28 to 32 weeks.

Frankfurt Stock Exchange Prime Standard listing requirements

The following are the general requirements for listing the Issuer on the Prime Standard segment of the Frankfurt Stock Exchange EU Regulated Market (hereinafter “Frankfurt Stock Exchange”) plus XETRA.

• Minimum age of company—3 years (exemptions possible);

• Minimum issuing volume—minimum market capitalization of €1.25 million;

• Minimum 30 shareholders;

• Equity capital minimum of €1.25 million (cash at some time in past or present);

• Free float minimum of 25%;

• Nominal issuing volume minimum of 10,000 shares;

• EU Prospectus (underwritten by company + bank/FWB-member);

• 3 years audited financials—IAS/IFRS (or adequate for Non-EU issuers);

• And other listing documents, forms and requirements.

• Our law firm, FSE Law GmbH (www.fselaw.com), conducts all of our listings.

Estimated Time to Listing—Approximately 28 to 32 weeks.

Please don't hesitate to contact us if you are interested in listing on the Prime Standard segment of the Frankfurt Stock Exchange. We look forward to hearing from you.

Frankfurt Stock Exchange segments

The Frankfurt Stock Exchange is divided into 4 tiers called "segments", as follows:
 
  1. Former: Quotation Board (dual listings only)
  2. Scale
  3. Entry Standard
  4. General Standard
  5. Prime Standard
 
Effective in 2012, the "Quotation Board" (formerly the Second Quotation Board) is available for dual listings only and the First Quotation Board segment is closed to new admissions.
 
The "Entry Standard" is the segment with the least stringent reporting requirements and the Prime Standard is the segment with the most stringent reporting requirements. Moving up through the segments is relatively seamless (compared with a graduation from the OTCBB to the NASDAQ in the US, for example) since all of the segments are part of the same Frankfurt Stock Exchange.
 
The Quotation Board (dual listings) and the Entry Standard segments belong to the Regulated Unofficial Market while the General Standard and Prime Standard segments belong to the Regulated Market. The Regulated Unofficial Market is also sometimes referred to as the Exchange Regulated Market or, more commonly, the 'Open Market' because it is self-regulated by the Frankfurt Stock Exchange, rather than by the EU.
 
Regulated Unofficial Markets:
 
  1. Former: Quotation Board
  2. Scale
  3. Entry Standard Segment
 
EU Regulated Markets (based on the European Union transparency standards):
 
  1. General Standard Segment
  2. Prime Standard Segment
 
Many companies enter the market on the Entry Standard with the goal of graduating to the General or Prime Standard segments, once they qualify.

Scale listings

If your company is listed on a foreign stock exchange that is considered a "like exchange" by the Frankfurt Stock Exchange, it is exempt from the primary registration rules, and can be dual listed on the Frankfurt Stock Exchange very quickly, very easily and very affordably.

If your company is already listed on a foreign stock exchange that is considered a "Like Exchange" by the Frankfurt Stock Exchange, you can Dual List on the Frankfurt Stock Exchange very easily and affordably. Dual listing your company means that it would be listed on both your current stock exchange and the Frankfurt Stock Exchange. "Dual listings", sometimes called "Cross-Border listings", "Cross listings", or "Secondary listings", literally opens an entirely new world of funders, investors, liquidity and potential shareholders. If your company is already publicly listed on one of the many Frankfurt Stock Exchange approved 'like exchanges', then we can dual list your company on the Frankfurt Stock Exchange extremely fast (within 4 weeks) and affordably. We can also obtain approvals for public offerings on the Frankfurt without an underwriter. Contact us now using the form below to get a price quote for your Frankfurt Stock Exchange dual listing.

Please don't hesitate to contact us to find out if your company trades on a "like exchange" and qualifies for a dual listing on the Frankfurt Stock Exchange. We look forward to hearing from you.

Xetra

The XETRA - Electronic Trading platform

Launched in 1997, Deutsche Börse’s XETRA electronic trading platform which was designed for the Frankfurt Stock Exchange is widely accepted as the most efficient and flexible automated trading system in the world for fully electronic securities trading. More than 14 stock exchanges around the world have licensed the Frankfurt Stock Exchange Xetra electronic trading platform. Xetra’s electronic trading technology has an outstanding record of high scalability, speed, reliability, quality of core technology and the ease with which it can be adapted in other markets.

Recent Changeover to the Xetra Specialist Model

The Open Market segment (today Scale) of the Frankfurt Stock Exchange changed its trading model on 23 May 2011. The future trading model will be implemented on the Xetra-based trading platform, whereby the lead brokers/market makers shall now be designated as "Xetra Specialists". The start of trading will be 8:00 am. The changes being implemented are designed to make trading at the Frankfurt Stock Exchange both faster and more globally efficient. Trading in the old Xetra model (“Xetra 1”) which was limited to only one auction per day, will terminate on the 27 May 2011.

Your current lead broker/market maker will continue on as your specialist under the new trading model. The primary difference is that, in their new role as Xetra Specialist, they are required to meet stringent performance requirements regarding the trading of your securities. In particular:

  • The Xetra Specialist will be required to keep a binding minimum listing volume of minimum €2,000 on both the bid and ask/offer. The new Xetra system for the Open Market will match trades every 2 minutes. Thus, the potential for an offer (sale order) of stock would basically force the Xetra Specialist to purchase €2,000 of stock at his required bid. Of course, the effect would be that the Xetra Specialist would likely drop his bid drastically each time he purchases another €2,000 of stock, until the stock is at a bid price where he is more content with purchasing the shares;
  • Maximum spread (the Deutsche Börse will specify the standards soon). This means that the market maker will be required to have a maximum percentage between the bid price and the ask/offer price. Thus, if the Xetra Specialist is forced to drop the bid price, he will be forced to drop the ask/offer price as well.
  • Maximum execution periods (pursuant to execution period classes).

When you go public on the Frankfurt Stock Exchange with GPP and our team, your stock automatically gains the ability to be traded through the Xetra electronic trading platform.

Please contact us for further information.
Phone: +34 871 955 077 | eMail: office@demicco.ch