An Overview of German Stock Exchange system and dual listing in Germany
For global companies considering a listing or dual-listing on Frankfurt Stock Exchange or a German trading exchange, the multitude of different exchanges can seem confusing. Here we attempt to explain the German Stock Exchange system.
The main German Stock Exchanges are Frankfurt, Tradegate, Gettex, Berlin, Hamburg, Stuttgart, Dusseldorf, Munich and L&S.
Frankfurt Stock Exchange
The Frankfurt Stock Exchange is the live stock exchange of the Frankfurt Stock Exchange (FWB), which is owned by Deutsche Börse AG. Deutsche Börse AG also operates the electronic trading platform and the futures exchange Eurex and is a majority owner of Tradegate exchange – which generally sees the highest volume for dual-listed companies on the German trading exchanges. This is the first step for a dual-listing of a global corporate in Germany.
The Frankfurt Stock Exchange is aimed at private investors and is the most important of the live stock exchanges in Germany.
There are over 13,000 dual-listed companies on the Frankfurt Stock Exchange and around 500 German companies with a primary listing. The quotation board is where companies listed on a recognised global exchange can be traded through a market maker system with no regulatory or compliance obligations.
All companies whose shares are already listed or included at another international or domestic trading venue and apply for admission to the Open Market are included in the Quotation Board.
For dual-listed companies the market-makers sets the buy/sell with reference to a company’s home exchange prices, trades on their own account, guarantees best prices and a market for the company’s shares on Frankfurt Stock Exchange.
A market maker cannot hold stock and must buy / sell any deficiency / surplus on the home exchange of the company they are trading. A market maker cannot promote or do anything else to create a market for the company’s shares.
Trading volume on all Deutsche Börse exchanges in 2023 was €1.2 trillion - a fall of 21% from 2022.
Stuttgart Stock Exchange
The second most important live stock exchange in Germany is the Stuttgart Stock Exchange.
Securities such as bonds, derivative investment products, stocks, ETFs or investment funds can be traded on the Stuttgart Stock Exchange. The crypto exchange BSDEX and the crypto trading app Bison also belong to the corporate universe of the Stuttgart Stock Exchange.
A hybrid market model is being implemented at the Stuttgart Stock Exchange, which combines electronic trading systems and their IT with the intervention of human specialists. Stuttgart also sees solid volumes for many dual-listed Australian and Canadian companies.
Düsseldorf, Hamburg and Hanover stock exchanges
BÖAG Börsen AG owns these three exchanges. All three regional stock exchanges are very traditional - the Hamburg Stock Exchange has existed since 1558, the Hanover Stock Exchange since 1785 and the Düsseldorf Stock Exchange since 1841.
The latter was added to the BÖAG stock exchange family in 2017. The LS Exchange, which has been active since 2016 and is described in more detail below, is a partner project with the Hamburg Stock Exchange. The three exchanges appeal to both institutional and private investors and many common investment products such as open funds, warrants, shares, or certificates.
Munich Stock Exchange
The Munich Stock Exchange, founded in December 1830, is also a very traditional stock exchange. A wide variety of asset classes such as stocks, investment funds, ETFs, bonds, or raw materials can be traded here.
The physical exchange in Munich is based on the electronic trading system MAX-ONE 2.0 (since 2015) and combines this with a specialist model in which specialists (securities trading banks) intervene in the automatic processes, for example to ensure liquidity and avoid partial executions.
In addition, the Munich Stock Exchange, the Bavarian Stock Exchange, also owns the electronic trading platform Gettex.
Berlin Stock Exchange
The history of the Berlin Stock Exchange goes back to 1685. Their offering includes investment products such as bonds, stocks, funds, or certificates.
In 2019, Tradegate Exchange, which in turn belongs to Deutsche Börse AG, took over the regional exchange.
Berlin sees very little volume for dual-listed Australian and Canadian companies. Was once a specialised biotech exchange but now not significant for companies looking at a German dual-listing.
Xetra
Xetra stands for electronic stock exchange trading.
It is a brand of Deutsche Börse AG, which also operates the live stock exchange in Frankfurt. Xetra is the leading German stock exchange and describes itself as the market leader in electronic trading of German stocks and promotes itself with fair prices, transparency, and low spreads.
90% of all German stock trading is carried out via Xetra.
LS Exchange
The LS Exchange belongs to the popular Düsseldorf financial service provider with the long name Lang & Schwarz and was founded in 2016.
This makes the LS Exchange the youngest electronic stock exchange in Germany.
It is aimed at private investors and aims to combine over-the-counter and on-exchange securities trading for the benefit of customers. The Hamburg Stock Exchange, which was also a cooperation partner in the founding of the LS Exchange, is responsible for exchange supervision.
Gettex
Gettex is one of two trading systems of the Bavarian Stock Exchange, which also operates the Munich Stock Exchange.
Securities have been traded here by private and institutional investors since 2015 - in 2021 there are already over 27,000, plus hundreds of thousands of derivatives from issuers HSBC, Goldman Sachs and HypoVereinsbank.
Gettex is operated using a market maker trading model, in which Baader Bank acts as a market maker. A special feature of gettex no brokerage or exchange fees are charged - only the spread has to be paid.
Tradegate
The Tradegate Exchange is held by Deutsche Börse AG, the Berlin Stock Exchange and Tradegate AG and specializes in private investors. Alongside Xetra, it is one of the most important digital securities exchanges in Germany.
Tradegate exchange generally sees the highest volume for dual-listed shares on German trading exchanges and is the settlement exchange for many neo-brokers such as Trade Republic.
Tradegate refers to a market maker market model in which so-called specialists intervene in the automatic price formation processes and ensure liquidity - Tradegate AG acts as the market maker.
Quotrix
Quotrix is also an electronic stock exchange for private investors that was launched by a regional stock exchange, in this case the Düsseldorf Stock Exchange in 2001.
Dual-listing in Germany has many advantages for global companies. European investors can buy stocks during their trading hours, without foreign exchange risks and without large transaction fees. A global investor base is good for a corporate as it de-risks the share registry and raises global awareness and interest in a company, its strategy and narrative.
List Local, trade Global
Liquidity and volumes are down on most global exchanges from the highs of many years. In times of relatively high inflation and interest rates, retail investors tend to rush for cash. Larger institutional investors also increase cash and other non equity investments.
We consider in the global era, companies need to engage with as many investors as possible - not just investors on home exchange. There are multiple avenues for doing this such as OTC listing on NASDAQ or AIM listings in the UK are now allowing dual-listings.
The easiest pathway to accessing a gobal investor base for a corporate with a primary listing on NASDAQ, NYSE, ASX, TSX or LSE is - in our view - a dual-listing on Frankfurt Stock Exchange and other German trading exchanges such as Tradegate exchange.
There has been a rise of neo-brokers in Europe of which Trade Republic is the most popular. These apps allow trading in dual-listed shares for very low transaction costs - usually around 1 euro a trade. The site has around 2 million active customers across Germany, France, Austria and the Netherlands.
The great benefit of the Frankfurt Stock Exchange quotation board listing is it is quick, efficient and has once completed there are no ongoing regulatory or compliance obligations.
Australian companies such as Droneshield Ltd (ASX: DRO) and Brainchip (ASX: BRN) see huge engagement and trading on German exchanges with volumes often over 10 million shares alone. Also in 2024 the dual-listed biotech stocks have seen strong buying together with uranium, clean energy, critical raw materials, gold, silver and green metals,
The great benefit of this for companies is there is broadening of the investor base with shareholders actively engaged from countries such as Germany, Austria, France and Switzerland.
For Australian, Canadian and global corporates the benefits of a dual-listing is that it expands their share registry provides a whole new market for the company's shares. Europe also has a large class of impact investors - who look to companies that not only provide a financial return on their investment but also make a difference to society and/or the environment.
Europeans prefer to trade shares in their own time zone, in their own currency and without forex risks.
A Frankfurt and German exchange dual-listing should be considered when a company seeks to increase its global investor base, engage with EU retail, sophisticated and institutional investors and explore fund raising opportunities in Europe.
The main German Stock Exchanges are Frankfurt, Tradegate, Gettex, Berlin, Hamburg, Stuttgart, Dusseldorf, Munich and L&S.
Frankfurt Stock Exchange
The Frankfurt Stock Exchange is the live stock exchange of the Frankfurt Stock Exchange (FWB), which is owned by Deutsche Börse AG. Deutsche Börse AG also operates the electronic trading platform and the futures exchange Eurex and is a majority owner of Tradegate exchange – which generally sees the highest volume for dual-listed companies on the German trading exchanges. This is the first step for a dual-listing of a global corporate in Germany.
The Frankfurt Stock Exchange is aimed at private investors and is the most important of the live stock exchanges in Germany.
There are over 13,000 dual-listed companies on the Frankfurt Stock Exchange and around 500 German companies with a primary listing. The quotation board is where companies listed on a recognised global exchange can be traded through a market maker system with no regulatory or compliance obligations.
All companies whose shares are already listed or included at another international or domestic trading venue and apply for admission to the Open Market are included in the Quotation Board.
For dual-listed companies the market-makers sets the buy/sell with reference to a company’s home exchange prices, trades on their own account, guarantees best prices and a market for the company’s shares on Frankfurt Stock Exchange.
A market maker cannot hold stock and must buy / sell any deficiency / surplus on the home exchange of the company they are trading. A market maker cannot promote or do anything else to create a market for the company’s shares.
Trading volume on all Deutsche Börse exchanges in 2023 was €1.2 trillion - a fall of 21% from 2022.
Stuttgart Stock Exchange
The second most important live stock exchange in Germany is the Stuttgart Stock Exchange.
Securities such as bonds, derivative investment products, stocks, ETFs or investment funds can be traded on the Stuttgart Stock Exchange. The crypto exchange BSDEX and the crypto trading app Bison also belong to the corporate universe of the Stuttgart Stock Exchange.
A hybrid market model is being implemented at the Stuttgart Stock Exchange, which combines electronic trading systems and their IT with the intervention of human specialists. Stuttgart also sees solid volumes for many dual-listed Australian and Canadian companies.
Düsseldorf, Hamburg and Hanover stock exchanges
BÖAG Börsen AG owns these three exchanges. All three regional stock exchanges are very traditional - the Hamburg Stock Exchange has existed since 1558, the Hanover Stock Exchange since 1785 and the Düsseldorf Stock Exchange since 1841.
The latter was added to the BÖAG stock exchange family in 2017. The LS Exchange, which has been active since 2016 and is described in more detail below, is a partner project with the Hamburg Stock Exchange. The three exchanges appeal to both institutional and private investors and many common investment products such as open funds, warrants, shares, or certificates.
Munich Stock Exchange
The Munich Stock Exchange, founded in December 1830, is also a very traditional stock exchange. A wide variety of asset classes such as stocks, investment funds, ETFs, bonds, or raw materials can be traded here.
The physical exchange in Munich is based on the electronic trading system MAX-ONE 2.0 (since 2015) and combines this with a specialist model in which specialists (securities trading banks) intervene in the automatic processes, for example to ensure liquidity and avoid partial executions.
In addition, the Munich Stock Exchange, the Bavarian Stock Exchange, also owns the electronic trading platform Gettex.
Berlin Stock Exchange
The history of the Berlin Stock Exchange goes back to 1685. Their offering includes investment products such as bonds, stocks, funds, or certificates.
In 2019, Tradegate Exchange, which in turn belongs to Deutsche Börse AG, took over the regional exchange.
Berlin sees very little volume for dual-listed Australian and Canadian companies. Was once a specialised biotech exchange but now not significant for companies looking at a German dual-listing.
Xetra
Xetra stands for electronic stock exchange trading.
It is a brand of Deutsche Börse AG, which also operates the live stock exchange in Frankfurt. Xetra is the leading German stock exchange and describes itself as the market leader in electronic trading of German stocks and promotes itself with fair prices, transparency, and low spreads.
90% of all German stock trading is carried out via Xetra.
LS Exchange
The LS Exchange belongs to the popular Düsseldorf financial service provider with the long name Lang & Schwarz and was founded in 2016.
This makes the LS Exchange the youngest electronic stock exchange in Germany.
It is aimed at private investors and aims to combine over-the-counter and on-exchange securities trading for the benefit of customers. The Hamburg Stock Exchange, which was also a cooperation partner in the founding of the LS Exchange, is responsible for exchange supervision.
Gettex
Gettex is one of two trading systems of the Bavarian Stock Exchange, which also operates the Munich Stock Exchange.
Securities have been traded here by private and institutional investors since 2015 - in 2021 there are already over 27,000, plus hundreds of thousands of derivatives from issuers HSBC, Goldman Sachs and HypoVereinsbank.
Gettex is operated using a market maker trading model, in which Baader Bank acts as a market maker. A special feature of gettex no brokerage or exchange fees are charged - only the spread has to be paid.
Tradegate
The Tradegate Exchange is held by Deutsche Börse AG, the Berlin Stock Exchange and Tradegate AG and specializes in private investors. Alongside Xetra, it is one of the most important digital securities exchanges in Germany.
Tradegate exchange generally sees the highest volume for dual-listed shares on German trading exchanges and is the settlement exchange for many neo-brokers such as Trade Republic.
Tradegate refers to a market maker market model in which so-called specialists intervene in the automatic price formation processes and ensure liquidity - Tradegate AG acts as the market maker.
Quotrix
Quotrix is also an electronic stock exchange for private investors that was launched by a regional stock exchange, in this case the Düsseldorf Stock Exchange in 2001.
Dual-listing in Germany has many advantages for global companies. European investors can buy stocks during their trading hours, without foreign exchange risks and without large transaction fees. A global investor base is good for a corporate as it de-risks the share registry and raises global awareness and interest in a company, its strategy and narrative.
List Local, trade Global
Liquidity and volumes are down on most global exchanges from the highs of many years. In times of relatively high inflation and interest rates, retail investors tend to rush for cash. Larger institutional investors also increase cash and other non equity investments.
We consider in the global era, companies need to engage with as many investors as possible - not just investors on home exchange. There are multiple avenues for doing this such as OTC listing on NASDAQ or AIM listings in the UK are now allowing dual-listings.
The easiest pathway to accessing a gobal investor base for a corporate with a primary listing on NASDAQ, NYSE, ASX, TSX or LSE is - in our view - a dual-listing on Frankfurt Stock Exchange and other German trading exchanges such as Tradegate exchange.
There has been a rise of neo-brokers in Europe of which Trade Republic is the most popular. These apps allow trading in dual-listed shares for very low transaction costs - usually around 1 euro a trade. The site has around 2 million active customers across Germany, France, Austria and the Netherlands.
The great benefit of the Frankfurt Stock Exchange quotation board listing is it is quick, efficient and has once completed there are no ongoing regulatory or compliance obligations.
Australian companies such as Droneshield Ltd (ASX: DRO) and Brainchip (ASX: BRN) see huge engagement and trading on German exchanges with volumes often over 10 million shares alone. Also in 2024 the dual-listed biotech stocks have seen strong buying together with uranium, clean energy, critical raw materials, gold, silver and green metals,
The great benefit of this for companies is there is broadening of the investor base with shareholders actively engaged from countries such as Germany, Austria, France and Switzerland.
For Australian, Canadian and global corporates the benefits of a dual-listing is that it expands their share registry provides a whole new market for the company's shares. Europe also has a large class of impact investors - who look to companies that not only provide a financial return on their investment but also make a difference to society and/or the environment.
Europeans prefer to trade shares in their own time zone, in their own currency and without forex risks.
A Frankfurt and German exchange dual-listing should be considered when a company seeks to increase its global investor base, engage with EU retail, sophisticated and institutional investors and explore fund raising opportunities in Europe.
