Market Segments and Transparency Levels
Segment by German law: Regulated Market
Prior to its listing, an issuing company must go through an admission procedure under public law. The company must have existed for at least three years and have issued at least 10,000 shares. 25 percent of the shares must be owned by diversified holdings. In addition, the company must provide an admission prospectus, in which balances, profit and loss, as well as the capital stream from the past three years are stated. The publishing language is German and, for foreign issuers, in English. The details governing an admission and the follow-up obligations are regulated in the German Stock Exchange Act, the Stock Exchange Admission Regulation, the German Prospectus Act as well as the Exchange Rules.
As of November 1, 2007, the subdivision of Official and Regulated Markets no longer exists. Securities entered into these markets on or since this date are now listed only in the Regulated Market.
In the Regulated Market securities are traded both through the electronic trading platform Xetra and at the Frankfurt trading floor.
In open outcry trading on the trading floor, lead brokers now quote the prices of securities mostly in a variable, i.e. continuous manner. The mid-day single cash price, referred to as cash settlement price, is quoted for all securities that are not traded variably. This however, only concerns a few commercial papers.
Market orders must first be executed at the quoted price. If all orders are not executed, the lead broker can "scale them down", i.e., he restricts the execution to certain priorities. Investors can see through price addenda how a lead broker has executed their order.