[wpdreams_ajaxsearchlite]

Open Market Frankfurt

Floating On The
Open Market
in Frankfurt

Technical Connectivity:  Excellent

Investor Reach: Woldwide, especially Europe

Prospectus Needed: No

Overall Listing Project Cost €/$: 80,000 (Bond)

Dual Listing: NA

The Open Market (formerly known as Freiverkehr) is primarily for trading foreign shares, and issuers are subject to lower transparency requirements than those of the Frankfurt Stock Exchange.

Here’s what Sebastian says:

“We only recommend the Open Markert in Frankfurt for bonds. Since Frankfurt has restructired the Open Market some years ago, It’s much easier to list stocks in Vienna and they are also on Frankfurt’s trading platform XETRA.”

Learn More:

Go to Website

The Open Market (formerly known as Freiverkehr) is primarily for trading foreign shares, and issuers are subject to lower transparency requirements than those of the Frankfurt Stock Exchange.

Why consider Open Market Frankfurt?

The Open Market is located in Frankfurt, one of Europe’s leading business centres. Previously, trades not included in the official stock exchange trading were conducted on the pavement in front of the official market. Today, unofficial trading occurs in an exchange-organised market regulated by the Frankfurt Stock Exchange, not by EU legislation. 

This regulated unofficial market was renamed the Open Market in 2005 and has relatively low transparency obligations. Companies do not have to present a lot of information, such as a listing prospectus.

The majority of shares traded on the Open Market are from foreign companies, but German enterprises are also listed. Issuing companies can choose to be included in either of the following segments of the Open Market:

Scale: This segment is designed to help small caps raise capital, opening the door to national and international investors. Issuers must adhere to transparency standards that are greater than the Quotation Board.

Quotation Board: This segment is for issuers whose shares are already listed or included at another international or domestic trading venue such as the Aquis Growth Market. Dual listing allows businesses to benefit from increased access to capital, additional liquidity and having shares that can trade for longer.

A significant advantage of trading on the Open Market is that the Frankfurt Stock Exchange operates Xetra, probably the most advanced trading technology platform globally. It is incredibly fast and efficient, an ideal platform for high liquidity securities. Trading companies benefit from fast execution, high transparency, low trading costs and connectivity. Most international brokers are connected to Xetra, in contrast to other markets such as NASDAQ and Aquis that have connections with a few national brokers and old proprietary technologies.

We recommend the Open Market for corporate bonds, where the minimum turnover requirements in place for raising equity do not apply. The main criteria for listing bonds here include submitting a prospectus, having a company history of two years and a placed bond volume of at least €20 million. The maximum bond denomination is €1,000.

Open Market Frankfurt Criteria List

For companies applying to trade on the Open Market Frankfurt, the requirements are more straightforward than the regulated market, and there are no follow-up obligations.

Open Market Important Points of Interest

Learn More:

Go to Website