Deutsche Börse is a stock exchange with a long and interesting history. A trading platform appeared in 1585 in Frankfurt and now it is one of the largest in Europe.
Deutsche Börse: the history of its foundation
The capitalization of the Frankfurt Stock Exchange is $ 1.9 trillion. The site takes on 90% of all operations in the market.
Despite the official creation date, the appearance of the exchange is considered to be 1150, when the food fair was first organized. After that, such events took place regularly and a huge number of merchants, hunters and craftsmen came to Frankfurt, between whom trade was actively conducted. The difficulty was caused by the currency, which was different in each region. In 1585, at the next fair, they agreed on a single exchange rate. The word Börse itself appeared only in 1605 and began to be applied to all European exchanges. It has two variants of origin – on behalf of the merchant of Bruges Van der Börs and on behalf of the bag or sack.
The first documents with currency quotes refer to 1625, in 1666 the rules of activity for brokers were indicated.
Since then, the Frankfurt Stock Exchange has rapidly developed, it placed government bonds of the emperor himself. But all this crashed after the First World War. In 1926, in Germany, as in the United States, a financial crisis occurred, the shares of companies listed on the stock exchange plummeted and depreciated. This period is known as Black Friday. Before World War II, Deutsche Börse managed to regain positions, but after it, the site had to be closed for six months.
A new stage of activity occurred in 1957, when trading on the stock exchange began to be carried out in US and Canadian dollars, and in the currency of various European countries.
Deutsche Börse is a unique venue. Back in 1969, they used a special computer system, thanks to which quotes were exchanged through telex. At NASDAQ, such a program will appear only after 2 years.
The Frankfurt Stock Exchange is a modern trading platform with over 1,000 companies participating. Here, the mechanism of operations differs from other conglomerate exchanges. Three categories of issuers take part in the auction:
● licensed brokers;
The latter has the least amount of rights. Banks are responsible for the initial purchase price. They account for the entire volume of operations. The functions of course brokers include the reception and execution of applications.
All operations at Deutsche Börse have carried out thanks to the Xetra system. It is connected to 20 European stock exchanges.