Deutsche Börse
Encyclopedia
Deutsche Börse AG (ˈdɔʏtʃə ˈbœʁzə) is a marketplace organizer for the trading of shares and other securities
. It also is a transaction services
provider. It gives companies and investors access to global capital market
s. It is a joint stock company
and was founded in 1993. The headquarters are in Frankfurt
, Germany
. As of December 2010, the over 765 companies listed had a combined market capitalization
of EUR 1.4 trillion.
, the U.S. and Asia
. Deutsche Börse has locations in Germany, Luxembourg
, Switzerland
, Czech Republic
and Spain
, as well as representative offices in Beijing
, London
, Paris
, Chicago
, New York
, Hong Kong
, and Dubai
.
FWB Frankfurter Wertpapierbörse (Frankfurt Stock Exchange
), is one of the world's largest trading centers for securities. With a share in turnover of around 90 percent, it is the largest of the German stock exchange
s. Deutsche Börse AG operates the Frankfurt Stock Exchange.
Deutsche Börse is the owner of Clearstream
, a clearing house based in Luxembourg, and Market News International (MNI), a global financial news agency.
In 2001, Deutsche Börse tried to merge with the London Stock Exchange
, followed in 2006 by a takeover bid, both rejected by LSE. After CEO Werner Seifert was forced to resign by the main shareholders in 2005, Deutsche Börse changed plans and entered into advanced negotiations for a merger with Euronext
which would have brought two of the biggest stock exchanges in Europe into one holding. The New York Stock Exchange
beat out Deutsche Börse's final bid for Euronext in 2006. However, in 2011 Deutsche Börse took over the New York Stock Exchange
when the two merged in a new company wherein Deutsche Börse shareholders have 60% ownership, and NYSE Euronext shareholders 40%.
Deutsche Börse had also considered the acquisition again in 2009.
On 9 February, 2011, reports suggested that NYSE Euronext and Deutsche Börse were in advanced talks about an all-stock merger. Deutsche Börse was in advanced talks to buy NYSE Euronext in a deal that would create the world's largest trading powerhouse. The shares of both companies were temporarily frozen on the news due to the risk of large price movements and clarifications of the deal. A successful deal would see the new company becoming the world's largest stock exchange operator with a market capitalisation of listed companies equal to US$15 Trillion, US$13.39 Trillion of which is part of the much larger NYSE Euronext, which is approximately 6 times the size of Deutsche Börse.
President and deputy CEO of NYSE Euronext Dominique Cerutti would become the new company's president and head of commercial and internal technology. Roland Bellegarde, also of NYSE Euronext, would become the head of European cash equities. The new company would potentially have 300 million euros (US$410 million) in cost savings. However, the merger would be subject to review in both the United States and European Union under concerns it could create a "de facto monopoly." NYSE Euronext shareholders approved the Deutsche Börse’s all-stock deal on July 7, and Deutsche Börse shareholders had accepted the deal by July 15.
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
. It also is a transaction services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
provider. It gives companies and investors access to global capital market
Capital market
A capital market is a market for securities , where business enterprises and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets...
s. It is a joint stock company
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
and was founded in 1993. The headquarters are in Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. As of December 2010, the over 765 companies listed had a combined market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of EUR 1.4 trillion.
Company
More than 3,200 employees service customers in EuropeEurope
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, the U.S. and Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
. Deutsche Börse has locations in Germany, Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
and Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, as well as representative offices in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
, Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, and Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
.
FWB Frankfurter Wertpapierbörse (Frankfurt Stock Exchange
Frankfurt Stock Exchange
The Frankfurt Stock Exchange is the world's 12th largest stock exchange by market capitalization. Located in Frankfurt am Main, Germany, the Frankfurt Stock Exchange is owned and operated by Deutsche Börse, which also owns the European futures exchange Eurex and the clearing company...
), is one of the world's largest trading centers for securities. With a share in turnover of around 90 percent, it is the largest of the German stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
s. Deutsche Börse AG operates the Frankfurt Stock Exchange.
Deutsche Börse is the owner of Clearstream
Clearstream
Clearstream Banking S.A. is the clearing and settlement division of Deutsche Börse, based in Luxembourg and Frankfurt. Clearstream was created in January 2000 through the merger of Cedel International and Deutsche Börse Clearing...
, a clearing house based in Luxembourg, and Market News International (MNI), a global financial news agency.
Mergers and acquisitions
Since 2007 Deutsche Börse operates the joint venture Scoach with SIX Swiss Exchange to provide a European derivative trading platform.In 2001, Deutsche Börse tried to merge with the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
, followed in 2006 by a takeover bid, both rejected by LSE. After CEO Werner Seifert was forced to resign by the main shareholders in 2005, Deutsche Börse changed plans and entered into advanced negotiations for a merger with Euronext
Euronext
Euronext N.V. is a pan-European stock exchange based in Amsterdam and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services...
which would have brought two of the biggest stock exchanges in Europe into one holding. The New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
beat out Deutsche Börse's final bid for Euronext in 2006. However, in 2011 Deutsche Börse took over the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
when the two merged in a new company wherein Deutsche Börse shareholders have 60% ownership, and NYSE Euronext shareholders 40%.
NYSE Euronext merger
On 7 December 2008, Deutsche Boerse rebuffed rumors that it might join with NYSE Euronext to create the world's leading stock exchange. While the company claims that it pursued the matter, on December 8, 2008 it reported that talks with which began on November 25, 2008 were closed without any result due to differences in valuation of the company.Deutsche Börse had also considered the acquisition again in 2009.
On 9 February, 2011, reports suggested that NYSE Euronext and Deutsche Börse were in advanced talks about an all-stock merger. Deutsche Börse was in advanced talks to buy NYSE Euronext in a deal that would create the world's largest trading powerhouse. The shares of both companies were temporarily frozen on the news due to the risk of large price movements and clarifications of the deal. A successful deal would see the new company becoming the world's largest stock exchange operator with a market capitalisation of listed companies equal to US$15 Trillion, US$13.39 Trillion of which is part of the much larger NYSE Euronext, which is approximately 6 times the size of Deutsche Börse.
President and deputy CEO of NYSE Euronext Dominique Cerutti would become the new company's president and head of commercial and internal technology. Roland Bellegarde, also of NYSE Euronext, would become the head of European cash equities. The new company would potentially have 300 million euros (US$410 million) in cost savings. However, the merger would be subject to review in both the United States and European Union under concerns it could create a "de facto monopoly." NYSE Euronext shareholders approved the Deutsche Börse’s all-stock deal on July 7, and Deutsche Börse shareholders had accepted the deal by July 15.