German Stock Exchange

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Deutsche Börse AG

logo
legal form Corporation
ISIN DE0005810055
founding 1992
Seat Frankfurt am Main , GermanyGermanyGermany 
management
Number of employees 5964
sales 2.780 billion euros (2018)
Branch Exchanges
Website deutsche-boerse.com
As of December 31, 2018

Rear view of the former company headquarters in Frankfurt-Bockenheim
Old trading hall of the Frankfurt Stock Exchange
New trading hall of the Frankfurt Stock Exchange

The German stock exchange AG is a German corporation based in Frankfurt am Main . The core business is the development and operation of trading platforms, participant networks and settlement systems for stock exchanges . It is also the carrier of the public Frankfurt Stock Exchange , publisher of the DAX index family and numerous other stock indices, and is itself listed in the DAX with its own shares .

history

Deutsche Börse emerged in 1992 from Frankfurter Wertpapierbörse AG, which was only founded in 1990 . In 2000, the company gave up its traditional headquarters at the trading center in downtown Frankfurt in favor of a modern office building, the so-called Neue Börse , at the Industriehof in Frankfurt-Bockenheim . The office building was a new building for the German stock market by a real estate fund of Commerzbank been built.

In order to save trade tax , Deutsche Börse decided to move from Frankfurt to neighboring Eschborn after the ten-year minimum rental period of the Neue Börse had expired . In July 2008, around half of the employees based in Germany moved to temporary offices in Eschborn. In July 2010, those and the employees who had previously remained in the Neue Börse moved into the newly built office building, The Cube in Eschborn. The data center and the depository for securities will remain in Frankfurt. Although the stock exchange hardly employs any staff in Frankfurt, the metropolis on the Main remains the official seat of the German stock exchange.

In the fourth quarter of 2009, Deutsche Börse posted a negative result for the first time since going public. Due to high depreciation after the takeover of the International Securities Exchange , there were layoffs in the group for the first time. 450 jobs, around 15 percent of the workforce, will be cut and some of them will be relocated to the cheaper Czech Republic .

Company profile

Deutsche Börse Group employs more than 4,500 people at 22 locations in 16 countries around the world. It operates the Xetra and Börse Frankfurt trading venues in the cash market division of Deutsche Börse Cash Market and, with Eurex, one of the largest futures exchanges in the world. In addition, since 2002 the company has been the sole owner of the international securities processor Clearstream, which is responsible for the settlement, administration and custody of securities .

Deutsche Börse IT takes on the development and provision of technical services such as software development, provision and operation of computers and networks, provision and operation of the subscriber network.

In the Market Data + Services segment , Deutsche Börse provides real-time security prices as well as information products such as share indices and reference data (master and date data on securities). As of December 31, 2012, over 990,000 financial instruments were traded on the Frankfurt Stock Exchange.

In November 2009, Deutsche Börse took over the US financial news service Need to Know News. Need to Know News is a wholly-owned subsidiary of Market News International Inc. (MNI), which was sold by Deutsche Börse AG to Hale Global in July 2016.

In July 2015, Deutsche Börse bought the 360T foreign exchange platform for 725 million euros and also acquired all shares (100%) in the joint venture STOXX AG for a purchase price of CHF 650 million from the SIX Group.

Shareholder structure

In 2015, around 72.5% of the shares were in free float . BlackRock has since increased its stake from 5.01 to 5.74%. On its own website, Deutsche Börse currently states that “shares not tendered / non-tendered shares” amount to 10.65% and treasury shares (ie shares not issued) to 3.21%. According to the published shareholder structure of Deutsche Börse Group, the proportion of institutional investors is 93–95%.

Share 2015 Shareholders
72.47% Free float
5.01% BlackRock
4.98% Invesco
4.64% own shares
3.12% Capital Group Companies
3.10% Dodge & Cox
2.90% Franklin Mutual Advisers
2.34% The Royal Bank of Scotland plc
1.43% Baillie Gifford

Corporate governance

The company is managed by a six-person board of directors.

Members of the board are:

  • Theodor Weimer , CEO
  • Christoph Böhm, IT Director (Chief Information Officer / Chief Operating Officer)
  • Thomas Book, responsible for trading & clearing
  • Stephan Leithner, responsible for post-trading, data & index
  • Gregor Pottmeyer , CFO
  • Hauke ​​Stars, responsible for the Cash Market, Pre-IPO & Growth Financing Division

Corporate structure

The most important holdings of Deutsche Börse are:

  • China Europe International Exchange AG - CEINEX (40%)
  • Börse Frankfurt Certificates Holding SA (100%)
    • Börse Frankfurt Certificates AG (100%)
  • BrainTrade Gesellschaft für Börsensysteme mbH (29%)
  • Deutsche Börse Commodities GmbH (16%)
  • Tradegate Exchange GmbH (75%)
  • Eurex Global Derivatives AG (100%)
  • Eurex Zurich AG (100%)
    • Eurex Frankfurt AG (100%)
      • Eurex Repo GmbH (100%)
      • Eurex Clearing AG (100%)
      • Eurex Bonds GmbH (79%)
    • European Energy Exchange AG (63%)
      • Cleartrade Exchange PTE. LTD
        • Cleartrade Exchange UK LTD
  • Clearstream Holding AG (100%)
    • Clearstream International SA (100%)
      • Clearstream Banking AG (100%)
        • Link-Up Capital Markets, SL (23%)
      • Clearstream Banking SA (100%)
        • Clearstream Banking Japan, Ltd. (100%)
        • REGIS-TR SA (50%)
      • Clearstream Services SA (100%)
      • Clearstream Operations Prague sro (100%)
      • LuxCSD SA (50%)
  • Deutsche Börse Systems, Inc. (100%)
  • Deutsche Börse Services sro (100%)
  • STOXX Ltd. (100%)
  • Indexium (100%)

The Cube headquarters

In order to save trade tax , Deutsche Börse moved from Frankfurt to neighboring Eschborn in 2010 , where the stock exchange is building an 87-meter-high office tower with an 80-meter-high entrance hall for 200 million euros through real estate developer Groß & Partner based on plans by architects KSP Jürgen Engel Architekten from Braunschweig let. The skyscraper, called "The Cube", has a total area of ​​56,000 m 2 and the Deutsche Börse Photography Foundation of Deutsche Börse regularly exhibits the photographs it has acquired in the building.

The Cube was the first skyscraper in Germany to be awarded the Leadership in Energy and Environmental Design (LEED) Platinum Certificate and sold to the Austrian Signa Holding in October 2010 for 230 million euros . Deutsche Börse AG has rented the building with an extension option until 2025.

Fusion scenarios

Since 2004 there have been the following projects for mergers between Deutsche Börse and other exchange organizations:

London Stock Exchange (2000, 2004)

In 2000, Deutsche Börse failed to take over the LSE due to the resistance of the owners of the London Stock Exchange (LSE).

At the end of 2004, Deutsche Börse tried to acquire LSE for the second time. At the same time competitor Euronext also bid for the LSE. In mid-January 2005, the British hedge fund The Children's Investment Fund (TCI), one of the major shareholders of Deutsche Börse, turned against the planned takeover of LSE for the first time. TCI argued that a takeover of the London Stock Exchange would be too expensive and devastating for Deutsche Börse's shareholders. The fund suggested that Deutsche Börse buy back its own shares instead . At the beginning of March 2005, the second attempt to take over failed. Deutsche Börse withdrew its takeover offer for 5.30  pounds per share or the equivalent of 1.94 billion euros. At the same time, Euronext withdrew from the bidding process for the LSE. Despite the withdrawal of the offer, Deutsche Börse kept an option open for a new takeover attempt should another interested party submit a bid for the LSE. The then chairman of the board, Werner Seifert , lost his job after some public arguments with shareholders. This also spurred the so-called grasshopper debate . Later, the chairman of the supervisory board, Rolf-E. Breuer and other members of the Supervisory Board resigned from their positions.

Euronext

In 2006, Deutsche Börse and its new CEO Reto Francioni started an attempt to merge with the four-country exchange Euronext . The project stimulated numerous economic policy discussions. The French President Jacques Chirac pleaded for a Franco-German solution. The President of the European Central Bank Jean-Claude Trichet preferred a stock exchange merger within Europe. Chancellor Angela Merkel advocated a possible merger of the two exchanges and described this as an interesting project. In addition to Deutsche Börse, the New York Stock Exchange NYSE tried to cooperate with Euronext.

In mid-February 2006, Deutsche Börse proposed a “merger between partners” to Euronext, without providing details of the offer. The media reported that the future headquarters , the company structure and the processing activities of a merged company developed into central points of contention. Euronext wants to avoid being considered a junior partner at all costs. In France there was concern that the Germans did not really want a merger of equal partners, but a covert takeover.

After the supervisory board of Euronext had voted in favor of a merger with the NYSE, since the offer was more attractive than that of the Deutsche Börse, the latter made a concrete purchase offer for Euronext for the first time, which exceeded that of the NYSE. They offered EUR 76.60 per Euronext share or around EUR 8.6 billion in cash and in shares of the new company. However, Euronext rejected the offer. In the period that followed, Euronext set numerous conditions for a possible merger. For example, Deutsche Börse should part with its profitable Clearstream business.

In October 2006, Deutsche Börse officially notified the EU Commission of the proposed merger with the Euronext four-country exchange . In response, Euronext CEO Jean-François Théodore told the newspaper “La Tribune” that “the best solution for creating a large European stock exchange” would be limited cooperation with Deutsche Börse; Euronext wants to stick to a merger with the New York stock exchange NYSE. Théodore again clearly rejected a complete merger between Euronext and Deutsche Börse, as Euronext would be too light in such a merger. In response, Deutsche Börse abandoned its merger plans in mid-November.

SIX Swiss Exchange

In August 2004, the SIX Swiss Exchange rejected plans for a merger. At the time, SIX was already a cooperation partner of Deutsche Börse at Eurex. In October 2006, the establishment of the cooperation between SIX and Deutsche Börse under the name ALEX was announced. In order to avoid a trademark dispute, a subsidiary of Rabobank was already using this name, the cooperation was finally called Scoach in August 2007 . With Scoach as a trading center for structured products, the previous market leader, Euwax, the trading segment for securitized derivatives of the Stuttgart Stock Exchange , was to compete. In June 2013 the joint trading platform "Scoach" was dissolved and renamed "Börse Frankfurt Certificates AG".

Chicago Mercantile Exchange Holdings

In October 2006, the "Wall Street Journal" reported, the German stock exchange and the Chicago Mercantile Exchange (CME) examined the possibility of a merger. Since the American competitors NYSE and NASDAQ were looking for expansion opportunities abroad, participation in a consolidation would have been an option for the CME. If Deutsche Börse had merged with CME, however, the Germans would have been the junior partner; the "Wall Street Journal" estimated in October 2006 the value of the CME at around 17 billion US dollars .

Borsa Italiana

In June 2006 it became known that Deutsche Börse was considering taking over Borsa Italiana in Milan . The variants apparently provided that the cash market in Milan as well as the bond platform Mercato Telematico all'Ingrosso dei Titoli di Stato (MTS) should be retained. MTS is jointly operated by the Italian stock exchange with Euronext.

In mid-October 2006, Deutsche Börse signed a letter of intent with Borsa Italiana. With this step, the creation of a European exchange with the involvement of Euronext should be advanced. In addition, the two exchanges were in dialogue about the creation of a European exchange organization based on a federal model. Massimo Segre, member of the board of directors of Borsa Italiana, previously stated that the Italians wanted to make an alternative offer to the takeover offer of the New York Stock Exchange (NYSE) together with Deutsche Börse of Euronext. On September 8, 2006, Deutsche Börse suspended discussions with Borsa Italiana about a joint approach to consolidating the European stock exchange landscape.

In 2007 the London Stock Exchange bought Borsa Italiana for around 1.5 billion euros.

International Securities Exchange Holdings

On April 30, 2007, it was announced that Deutsche Börse was buying the US options exchange International Securities Exchange (ISE). The merger resulted from the merger of ISE and a subsidiary of US Exchange Holdings, which in turn is a subsidiary of Eurex . At the time, Eurex was a joint venture between Deutsche Börse and the SIX Swiss Exchange. Eurex paid 2.8 billion US dollars for ISE, Deutsche Börse assumed 85 percent and SIX 15 percent of the purchase price.

ISE's 2006 sales were approximately $ 178 million with a profit of $ 55 million. The ISE share has been listed on Wall Street since March 2005. The takeover allows Eurex to expand its product range into the US dollar area. The exchange had already tried to conquer the American market with Eurex US in 2004, but it failed. The ISE remains independent under the regulation of the SEC and retains its structure and brand.

On March 9, 2016, the German stock exchange announced that they have the equity options exchange  International Securities Exchange  (ISE) to the US Securities and Exchange Nasdaq, Inc . will sell. The purchase price was $ 1.1 billion in cash. The transaction was completed on June 30, 2016.

NYSE Euronext

On February 9, 2011, trading in the shares of Deutsche Börse and NYSE Euronext was suspended after it was confirmed that both exchanges were in advanced negotiations on a merger. Had this merger been successful, it would have resulted in the world's largest stock exchange company. The shareholders of Deutsche Börse were to hold the majority in the merged stock exchange, the market capitalization of Deutsche Börse was 11.4 billion euros in February 2011, that of NYSE Euronext 6.7 billion euros.

In the course of 2011, however, concerns about the merger grew. On February 1, 2012, the EU Commission refused to approve the merger of Deutsche Börse with NYSE Euronext. Despite the concessions made by both companies, the Commission had come to the conclusion that the merger would significantly impede competition. The proposed merger had thus failed.

Failure of the intention to merge to form the London Stock Exchange Group (2016 or February / March 2017)

On February 23, 2016, Deutsche Börse announced that it was planning a "merger of equals" with the London Stock Exchange Group . The shareholders of the London Stock Exchange Group should receive 0.4421 shares of the new merged company for each share, while the shareholders of the Deutsche Börse should be able to swap their shares one for one. In the end, the shareholders of the Deutsche Börse should hold 54.4% of the shares in the new company, the shareholders of the London Stock Exchange the remaining 45.6%. The two companies anticipated cost savings of € 450 million ( £ 354 million ) annually from the merger , representing approximately 20 percent of the combined total cost of ownership of both companies. Both exchanges reported the planned merger to the EU Commission on August 25, 2016 . At the end of February 2017, the merger talks with the London Stock Exchange failed. In particular, the relocation of the headquarters of the Stock Exchange from Frankfurt to London resulted due to the United Kingdom and Gibraltar European Union membership referendum to the obstacle of a merger and alleged investigations against the manager Kengeter end of March 2017 also said the European Commission that the merger, as the market for the clearing of fixed income financial instruments "a de- facto monopoly ”would have been created.

literature

  • André Alfes: Central Counterparty - central counterparty - central counterparty: via the conclusion of a contract on the Frankfurt Stock Exchange using the electronic trading system Xetra with the involvement of a central counterparty . Duncker & Humblot, Berlin 2005, ISBN 3-428-11993-2 .
  • Herbert Alsheimer: The stock exchange in Frankfurt . Societäts-Verlag, Frankfurt am Main 2006, ISBN 3-7973-0998-8 .
  • Deutsche Börse: Organization and working methods - Deutsche Börse AG . Frankfurt am Main 1993, DNB 931655986 .
  • Hartmut Kiehling: The German stock exchange from 1920 to 1923 . In: Bankhistorisches Archiv 2/1995, magazine for banking history, published by the Scientific Advisory Board of the Institute for Bank History Research, Frankfurt am Main.
  • Werner G. Seifert: Invasion of the locusts. Intrigue - power struggles - market manipulation . Econ-Verlag, ISBN 3-430-18323-5 .
  • Otto Wormser: The Frankfurt Stock Exchange - its special features and its importance . Tübingen, Mohr 1919 (Reprint: Schmidt Periodicals, Bad Feilnbach 1993, DNB 943108330 )

Web links

Individual evidence

  1. ↑ 1585–2010 Deutsche Börse celebrates its anniversary - a chronology of efficient markets. (PDF; 3.4 MB) Deutsche Börse, August 23, 2010, accessed on October 3, 2013 (anniversary publication).
  2. ↑ a b Annual Report 2018 (PDF; 7.29 MB) Deutsche Börse, March 15, 2019, accessed on March 18, 2019 .
  3. ↑ a b Annual Report 2007 CFB Fund 130, Neue Börse Frankfurt / Main. (No longer available online.) Archived from the original ; accessed on July 25, 2018 .
  4. ^ Deutsche Börse now in Eschborn. faz.net , November 4, 2010, accessed June 5, 2013 .
  5. ↑ Deutsche Börse reacts to losses by cutting jobs. welt.de , February 17, 2010, accessed June 5, 2013 .
  6. ↑ Deutsche Börse Cash Market trading venues
  7. ↑ Florian Langenscheidt , Bernd Venohr (Hrsg.): Lexicon of German world market leaders. The premier class of German companies in words and pictures . German Standards Editions, Cologne 2010, ISBN 978-3-86936-221-2 .
  8. ↑ Deutsche Börse takes over US financial news service Need to Know News ( Memento from September 9, 2012 in the web archive archive.today )
  9. ↑ Deutsche Börse takes over US financial news service Need to Know News ( Memento from January 22, 2013 in the web archive archive.today )
  10. ^ Deutsche Börse Group - Deutsche Börse Group. In: www01.deutsche-boerse.com. Retrieved August 11, 2016 .
  11. ↑ Alexander Hüsing: Deutsche Börse swallows 360T currency platform. German Startups , July 27, 2015, accessed July 30, 2015 .
  12. ↑ Deutsche Börse Group - Successful conclusion of negotiations for the complete acquisition of STOXX AG and Indexium AG from SIX Group. (No longer available online.) In: deutsche-boerse.com. Archived from the original on December 1, 2017 ; accessed on August 11, 2016 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / deutsche-boerse.com
  13. ↑ Corporate information from Deutsche Börse, accessed February 12, 2017
  14. ↑ Deutsche Börse website , accessed February 12, 2017
  15. ↑ Deutsche Börse company profile. cortalconsors.de , accessed on March 22, 2015 .
  16. ^ Board of the Deutsche Börse. Deutsche Börse, accessed on January 2, 2018 .
  17. ↑ Group structure of Deutsche Börse. Deutsche Börse, May 1, 2014, accessed on August 9, 2014 .
  18. ^ Deutsche Börse flees Frankfurt. Der Spiegel, November 4, 2010, accessed on June 3, 2019 .
  19. ↑ White boredom in housing construction in FAZ of June 24, 2011, p. 68.
  20. ↑ With patience and an eye for talent. Frankfurter Allgemeine Zeitung, January 20, 2019, accessed on June 3, 2019 .
  21. ^ THE CUBE, Eschborn. Signa Holding, accessed June 3, 2019 .
  22. ↑ Benko buys Deutsche Börse headquarters for 230 million euros. Der Standard, October 15, 2010, accessed June 3, 2019 .
  23. ^ Deutsche Börse Group - Scoach joint venture is about to end. (No longer available online.) In: deutsche-boerse.com. Archived from the original on August 11, 2016 ; accessed on August 11, 2016 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / deutsche-boerse.com
  24. ↑ Deutsche Börse Group - Börse Frankfurt Certificates AG: Market shares expanded in 2013, name change successfully completed. (No longer available online.) In: deutsche-boerse.com. Archived from the original on August 11, 2016 ; accessed on August 11, 2016 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / deutsche-boerse.com
  25. ↑ The big gobble of the stock market. ftd.de , archived from the original on September 29, 2007 ; Retrieved June 5, 2013 .
  26. ↑ Deutsche Börse takes over ISE. Finanznachrichten.de , May 2, 2007, accessed June 5, 2013 .
  27. ↑ Sale of International Securities Exchange Holdings completed . Deutsche Börse AG. Archived from the original on July 5, 2016. Retrieved March 10, 2019.
  28. ↑ Planned merger of Deutsche Börse with NYSE Euronext. ftd.de, archived from the original on February 11, 2011 ; Retrieved February 9, 2011 .
  29. ↑ EU blocks mega stock exchange merger - "Disappointing day". reuters.com , accessed June 5, 2013 .
  30. ↑ http://deutsche-boerse.com/dbg/dispatch/de/notescontent/dbg_nav/home/INTEGRATE/mr_pressreleases?notesDoc=3555D2611776FE5BC1257F6200518557&newstitle=deutscheboerseag:potentlicherz&location=home
  31. ↑ London Stock Exchange and Deutsche Boerse agree merger. BBC News, March 17, 2016, accessed March 17, 2016 .
  32. ↑ LSE and Deutsche Börse announce merger. In: Handelsblatt. August 25, 2016. Retrieved August 25, 2016 .
  33. ↑ n-tv.de: Hessian minister sees guilt in London
  34. ↑ Spiegel.de: London Stock Exchange has allegedly given up on merger due to investigations
  35. ↑ EU Commission prohibits the merger of Deutsche Börse and LSE at Spiegel Online , March 29, 2017 (accessed on March 29, 2017).