Regulated Market

The taking effect of the FRUG has led to operational changes of security paper permission for trading. The division of the regulated markets into the market segments official market and regulated market has been removed. Since 1 November 2007, admission to the Frankfurt Stock Exchange is solely to the so called regulated market (General Standard), or a section of the regulated market with further follow-up mandatory reports (Prime Standard).

The Regulated Market is an organized market within the meaning of § 2 para. 5 German Securities Trade Act (WpHG). Prior to trading, the issuer of the securities must file an application for admission to the Regulated Market together with a bank, a financial service provider or a company which operates in accordance with § 53 para. 1 sentence 1, or § 53b para. 1 sentence 1 of the German Banking Act, to the Admissions Office of FWB® Frankfurter Wertpapierbörse (Frankfurt Stock Exchange). The bank or company must be admitted to a domestic stock exchange with the right to participate in trading and submit proof of a liable capital of €730,000. If the issuing company itself fulfils these conditions, it may file the application for admission alone.

The legal bases for admission are regulated in detail in the German Stock Exchange Act, the Stock Exchange Admission Regulation, the Prospectus Act and the Exchange Rules.

Main criteria for the first admission of shares :

• The issuer must have existed as a company for at least three years.
• The anticipated market value of the shares to be admitted or – if an estimate is not possible – the equity of the company amounts to at least €1.25 million.
• The minimum number of shares is 10,000 for no-par value shares.
• Free float of at least 25 percent. According to § 9 BörsZulV (Stock Exchange Admission Regulation) exceptions are possible.
• The admission document is a listing prospectus with information about the actual and legal circumstances which are essential for the assessment of the issuer and the security. The listing prospectus must be accurate and complete and must include the balance sheets, income statements and cash flow statements of the last three fiscal years and the notes as well as the management report of the last fiscal year.
• Publication language is German, for foreign issuers also English.
• The decision-making body is the Admissions Office of the Frankfurt Stock Exchange.

Main follow-up obligations for the issuers of shares:

• publication of annual financial statements
• publication of an interim report for the first six months of the fiscal year
• ad-hoc disclosure in accordance with § 15 WpHG
• duty of notification in accordance with § 21 WpHG.

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