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The Frankfurt Stock Exchange: Germany’s primary stock exchange
Despite being relatively smaller than in some other major economies, the total
Frankfurt is continental Europe’s most important financial hub
While Germany’s domestic financial markets may not be the largest in Europe, the economic integration created by the euro makes Frankfurt one of the
Despite being relatively smaller than in some other major economies, the total market capitalization of the Frankfurt Stock Exchange amounts to around two trillion euros, placing it just outside the 10 largest stock exchanges worldwide. Two main trading venues comprise the Frankfurt Stock Exchange: the traditional trading floor of the Börse Frankfurt, and the Xetra electronic trading system. The latter accounts for the vast majority of trading volume on Frankfurt Stock Exchange . The DAX index value is the main indicator of German companies’ share prices, being comprised of the 30 largest companies listed on the Frankfurt Stock Exchange by market capitalization. Included in the DAX are household names like carmakers Volkswagen and Daimler, sporting goods company adidas, insurer Allianz, and industrial companies Siemens and BASF.While Germany’s domestic financial markets may not be the largest in Europe, the economic integration created by the euro makes Frankfurt one of the most important financial hubs in the Western Europe . Frankfurt is not only home to Germany’s primary equity market, but two major central banks: the German ‘Bundesbank’, and the European Central Bank. Part of Frankfurt’s importance comes from its role as a trading hub for capital and money markets. For example, trading of the two trillion euros of outstanding German government debt is managed in the city. But just as important is the regulatory role Frankfurt plays in deciding German and euro-level monetary policy. For example, while the billions of euros transacted daily in interbank lending in the eurozone flows freely across national borders, Frankfurt is home to the regulatory apparatus governing this crucial pan-European market.