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Frankfurt Stock Exchange: barometer of the health of the German and Global economy ?

Blog > Frankfurt Stock Exchange: barometer of the health of the German and Global economy ?

Article done by prof of SSBM Geneva Dario Silic, PhD

It is with great pleasure that we announce that Dario Silic, PhD, Professor of Financial Management at SSBM Geneva, recently visited Frankfurt Stock Exchange. The Frankfurt Stock Exchange, also known as the Frankfurter Wertpapierbörse in German, is one of the largest and most important stock exchanges in the world. This Stock Exchange is one of the oldest stock exchanges internationally as it was established in 1585 and has played a pivotal role in the development of the German economy.

The Frankfurt Stock Exchange is part of the Deutsche Börse Group andissituated in Frankfurt, Germany, a city, which is a leading provider of financial market infrastructure.

This stock exchange offers a wide range of financial instruments including stocks, bonds, derivatives, and other securities. Professor Silic actively teaches SSBM Geneva students through online or onsite lectures about these financial instruments and its equity in corporate finance classes.

Outside the Stock Exchange in Frankfurt there are two clear statues, one of a bear and one of a bull. The bear symbolises the downtrend market and the bull represents the uptrend market, which clearly demonstrates also the importance of the German conservative and cautious investment policy on capital markets compared to some other countries and stock exchange where you can find only a bull.

Many world-renowned organisations such as Volkswagen, Siemens, and Adidas are based in Frankfurt alongside the Frankfurt Stock Exchange. It is also the heart for trading in the Eurozone and is an important centre for international finance. Germany is also at the forefront of exchanges as over 90% of the companies listed on the exchange are based in Germany and it has a market capitalization of over €1.5 trillion.

The Frankfurt Stock Exchange as previously mentioned is a specific exchange and one of its’  unique features is the Xetra electronic trading system. The Xetra system is one of the most advanced trading systems in the world and it enables investors to trade stocks, bonds, and other securities in real-time, and provides them with up-to-date information on market trends and trading activity. The Xetra facilitates trading of more than 1 million securities, making it one of the most liquid markets in the world.

BaFin also known as theFederal Financial Supervisory Authority regulates the Frankfurt Stock Exchange and it is responsible for ensuring that all market contributors comply with German and European financial regulations. This not only ensures that the exchange operates in a fair and transparent manner but also that investors can have confidence in the integrity of the market. This is extremely vital and helps the credibility of the stock exchange itself.

As already noted a vital part of the German economy and an important centre for international finance is the Frankfurt Stock Exchange itself. This specific stock exchange has enhanced trading systems, strong regulation, and wide range of financial instruments. This offers investors around the world access to some of the best investment opportunities in Europe.

The exchange is often seen as a barometer of the health of the German economy, with fluctuations in the exchange often reflecting broader economic trends. This close relationship with the German economy has made the exchange an important indicator for global investors.