Overview
Deutsche Börse AG is a leading global provider of market infrastructure. Headquartered in Frankfurt, Germany, it facilitates the trading of securities, commodities, and derivatives. Founded in its modern form in 1992, Deutsche Börse operates several key financial services entities, including the Frankfurt Stock Exchange and Clearstream, a leading clearing and settlement provider. Additionally, it holds joint ownership of the Eurex derivatives exchange.
Deutsche Börse plays a crucial role in the functioning of global markets by providing secure and efficient systems for trading and post-trading activities. In March 2016, Deutsche Börse announced a merger deal with the London Stock Exchange to further expand its global reach.
Examples
- Frankfurt Stock Exchange (FSE): This is one of the largest and most efficient trading platforms globally, providing a venue for buying and selling a wide range of securities.
- Clearstream: As a prominent clearing and settlement organization, Clearstream ensures the accurate and timely processing of financial transactions.
- Eurex: This is one of the world’s leading derivatives exchanges, offering a wide range of European benchmark derivatives.
Frequently Asked Questions (FAQs)
What is Deutsche Börse?
Deutsche Börse AG is an international market-place organizer based in Frankfurt, Germany, involved in the trading of securities, commodities, and derivatives. It operates the Frankfurt Stock Exchange and Clearstream, among other entities.
How does Deutsche Börse generate revenue?
Deutsche Börse generates revenue through various activities such as trading fees from the Frankfurt Stock Exchange, clearing and settlement fees via Clearstream, and trading in derivatives through Eurex.
What is the significance of Clearstream?
Clearstream is a crucial part of Deutsche Börse’s infrastructure, providing efficient and reliable clearing and settlement services, which is vital for the stability and security of financial markets.
How does Eurex contribute to Deutsche Börse?
Eurex is a major derivative trading platform and a joint venture of Deutsche Börse, contributing significantly to its revenue and global reach in the derivatives market.
What was the outcome of the proposed merger with the London Stock Exchange in 2016?
The proposed merger with the London Stock Exchange was ultimately called off in 2017 due to regulatory hurdles and political concerns primarily arising from Brexit.
Are Deutsche Börse and the Frankfurt Stock Exchange the same entity?
No, Deutsche Börse AG is the parent company that operates the Frankfurt Stock Exchange among other financial services and infrastructures, but the exchange itself is a separate entity under its umbrella.
Related Terms
Frankfurt Stock Exchange (FSE)
Traded as an important venue for securities in Europe, the FSE is run by Deutsche Börse and is noted for its high trading volume and comprehensive range of securities.
Clearstream
A key clearing and settlement provider for Deutsche Börse, Clearstream helps ensure the smooth operation of securities transactions globally.
Eurex
A leading European derivatives exchange co-owned by Deutsche Börse, offering a variety of trading products in futures and options.
Online Resources
Suggested Books for Further Study
- “A History of the Frankfurt Stock Exchange: From The Beginnings to the Present” by Manfred Pohl
- “Financial Markets and Banking” by Paolo Tasca, Tomaso Aste, Loriana Pelizzon, Nicholas Perony
- “Trading and Exchanges: Market Microstructure for Practitioners” by Larry Harris
- “Clearing, Settlement and Custody” by David Loader
- “Derivatives and Internal Models” by Helyette Geman
Deutsche Börse Fundamentals Quiz
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