Frankfurt Hesse, Germany

History

The roots of the Frankfurt Stock Exchange trace back to medieval trade fairs in the 11th century. By the 16th century, Frankfurt had evolved into a prosperous city driven by trade and financial services. In 1585, a bourse was founded to establish fixed currency exchange rates, marking a pivotal moment in the birth of the stock exchange. In 1879, the Frankfurt Stock Exchange relocated to its new building at Börsenplatz. Following World War II, in 1949, the Frankfurt Stock Exchange emerged as the preeminent stock exchange in Germany, attracting both national and international investments.

In the 1990s, the Frankfurt Stock Exchange played a significant role as the bourse for the Neuer Markt (New Market) during the global dot-com boom. In 1993, the Frankfurter Wertpapierbörse (Frankfurt Stock Exchange) transformed into Deutsche Börse AG, assuming operational responsibilities for the exchange.

In the early 1960s, the Frankfurt Stock Exchange benefited from its proximity to the Bundesbank, which wielded significant influence over financial policies in Europe until the euro’s introduction in 2002. Subsequently, the exchange has capitalized on the European Central Bank’s presence in Frankfurt.

In 2002 and 2004, Deutsche Börse engaged in talks to acquire the London Stock Exchange, but the negotiations collapsed in 2005. A subsequent merger attempt was thwarted by the European Commission in 2017. The Frankfurt Stock Exchange (FWB) is presently the world’s 10th largest stock exchange by market capitalization.

Xetra serves as the primary market for trading German equities and exchange-traded funds. The Frankfurt Stock Exchange dominates the German and a substantial portion of the European market, contributing over 90% of the trading volume. In 2010, the Frankfurt Stock Exchange decided to eliminate floor trading, completing the transition to exclusive Xetra system trading in May 2011. Market-makers on the new platform now assume the role once held by redundant floor brokers.