History of the Frankfurt Stock Exchange20th century: Wars, reconstruction, the computer age and cross-border growth
The internationally oriented FWB® Frankfurter Wertpapierbörse (the Frankfurt Stock Exchange) was very hard hit by World War I and its consequences. Foreign shares and bonds were sold by German investors out of fear of instrumentalization by the warring states; freed up capital was invested mostly in government bonds. By the end of the war, all foreign securities had disappeared from German exchange lists, as a result of which Frankfurt lost its standing as an international stock exchange. By the end of the war, the international contacts of the Frankfurt Stock Exchange had been lost. Inflation set in and reached its peak in 1923. The stock exchange saw unprecedented losses in securities of monetary value. By contrast, demand for stocks as speculation objects sharply increased. In October 1929, however, stock exchange prices fell dramatically and 25 October 1929 made history as “Black Friday”. The world economic crisis ruled the following years. The economy only began to restabilize in 1932.
Following the collapse of the Nazi regime in 1945, the exchange initially remained closed for six months. It was reopened in September 1945 as one of the first German stock exchanges.
It was only following the currency reform of 1948 and the growing consolidation of the German economy that the Frankfurt Stock Exchange gradually recovered its old significance. Beginning in 1956, the purchase of foreign securities was again permitted in Germany. Frankfurt was thus able to return to its tradition of international business and resume its leading position in Germany. The stock exchanges played an important role as capital intermediaries for the country's post-war reconstruction. Through their activity, they were also decisively involved in the subsequent "economic miracle" and the Federal Republic of Germany's achievement in becoming a major economic force in the world.
In the course of the fundamental developments at the close of the twentieth century, the Group has evolved from a mere market-place organizer for share trading to an international service provider to the securities industry covering the entire process chain of exchange trading.Deutsche Börse Systems AG builds and operates the trading systems and has been supporting Deutsche Börse’s global network of participants since 1997.Eurex was established in 1998 with the merger of DTB Deutsche Terminbörse (the German derivatives exchange) and SOFFEX (Swiss Options and Financial Futures). As one of the world's largest derivatives exchanges and the leading clearing house in Europe, Eurex provides access to the benchmark futures and options market for European derivatives independent of where market participants are located. It offers a high-quality, cost-efficient and comprehensive trading and clearing value chain.In 2000, Deutsche Börse Clearing AG and Cedel International merged to create Clearstream International. The one hundred percent subsidiary of Deutsche Börse is Europe’s leading supplier of integrated services for the post-trading infrastructure for shares and bonds in national and international trading and securities custody.
- 11th - 17th century: Fairs, coins and bills of exchange
- 18th - 19th Century: Patricians, Princes and Commodity Markets
- 20th century: Wars, reconstruction, the computer age and cross-border growth
- 21. Century: Stock market reform & internationalization