One of the oldest and most original exchanges on the planet, Frankfurt Stock Exchange continues to fight for leading positions, both in the European and global markets.
History of the Frankfurt Stock Exchange
The year 1585 was a landmark year for the regularly scheduled Frankfurt Fair: merchants agreed to exchange currencies in order to avoid a depreciation of money from the many different trading countries. The emergence of such a regulator had a very effective effect on the future fate of the fair, which had already begun to resemble the prototype of the modern exchanges. The transactions with bills of exchange and commodities carried out on it were at first conducted in the open air, near the city administration building, but soon the merchants moved indoors. For this reason, an exchange governing body, consisting of merchants' deputies, appeared to collect fees from visitors, and consequently, Frankfurt Stock Exchange has acquired its own organized structure.
Frankfurt Stock Exchange By the beginning of the twentieth century, it was considered one of the most advanced exchanges in Europe. It traded promissory notes, bonds, and government loans, and also introduced the official exchange rate, which united the disparate quotes individual brokers. However, the lack of attention to the new stock instrument - stocks, together with the outbreak of World War I, dealt a heavy blow to the recently successful institution, sending it into oblivion. The revival of Phoenix from the ashes took place in the 1950s.
In the late 1980s, a new player in the stock market, Deutsche BorseThe FWB, a German exchange, united several German exchanges under its wing, including the Frankfurt Exchange (FWB). In 1988, the general public was presented DAX indexwhich was a list of the top 30 blue chip companies in Germany that are traded on the Frankfurt Stock Exchange. This list includes such world leaders in their industries as Siemens (IT technology), Adidas (sportswear and footwear), BMW, Volkswagen Group (automotive industry), Bayer (pharmaceuticals), Metro (retail), Henkel (household chemicals). Because of the leading positions of these companies in the international market DAX index is one of the most significant in the global marketplace.
Frankfurt in a race with London
At the moment on the turnover of transactions with shares Frankfurt Stock Exchange ranks second in Europe, behind its main hated competitor, the London Stock Exchange. To reach the first position, the German management has taken many steps, such as negotiations on a possible merger with Euronext or the Russian exchanges MICEX and RTSThe main enemy, and directly tried to buy the main enemy, but the deal with the Londoners did not work out. One of the strongest advantages Frankfurt Stock Exchange are: high transparency of trading rules on the market and a large number of financial instruments.
It would not be superfluous to mention that it is on the Frankfurt Stock Exchangee in the 18th century, Meyer Amschel Rothschild began his first steps in trade, soon to become a powerful banker and pass his influence on to his sons, whose descendants' activities still have a wide public resonance to this day.