Deutsche Börse plans resegmentation of the open market

Deutsche Börse plans resegmentation of the open market

06/02/2012

Deutsche Börse is planning a resegmentation of the Open Market. The First Quotation Board in its current form will be discontinued, the Entry Standard's rules are also being tightened. In future, aside from bonds, only equities which have a listing on another domestic or foreign stock-exchange-like trading venue recognised by Deutsche Börse will be included in the Quotation Board, as was the case in the former Second Quotation Board. 

Since 2008, a further financing segment, the First Quotation Board has been available in which the applying Members assume selection of the issuers. At the start of 2011, the requirements for the protection of the capital market were tightened. According to findings by Deutsche Börse, the stock exchange regulator of the state of Hesse and the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht), despite criminal law and supervisory measures and the close involvement of the applicant and the tightening of admission requirements, there have nevertheless continued to be massive and frequent suspected cases of market manipulation.

“We are convinced that the envisaged measures will protect and further improve transparency, quality and efficiency of the overall market, thereby ensuring continual raising of funds and tradability of securities,” said Alexander Höptner, who is responsible for the Market Services Department at Deutsche Börse. 

Companies which are currently on the First Quotation Board and which fulfill the relevant entry and follow-up requirements will in principle be able to switch to the more highly regulated Prime Standard and General Standard segments in the Regulated Market and Entry Standard in the Open Market. 
In future, the specialist will take on the applicant's role in the Quotation Board and ensure the security's tradability by providing liquidity and taking on the duty of announcing capital measures and other relevant information without delay to the stock exchange.

In order to sustainably improve the involvement of issuers, the Entry Standard's rules are also being tightened. Access to the Entry Standard as a subsegment of the Open Market will in future always require a public offering and thus a prospectus. In addition, the follow-up requirements will be tightened and the issuer will be placed under direct obligation to fulfil them. In order to give investors the opportunity to sell their shares on the stock exchange, the resegmentation is expected to take place in Q3.