Designated Sponsor- Frankfurt Stock Exchange

Shares in one of the selection indices of Deutsche Börse must be continuously tradable. The underlying criterion is the liquidity of the security. Designated Sponsors secure higher liquidity by quoting binding prices for buying and selling the shares. The probability that placed orders are executed increases considerably. Based on the principle ”liquidity attracts liquidity“, actively supported shares are more popular with investors.

Designated Sponsor Definition: Banks or specialized traders who bridge temporary imbalances between supply and demand in Xetra electronic stock trading, thereby improving a stock’s liquidity. They do so by quoting bid and ask limits (market making), either on their own initiative, on request of a market participant (quote reuest) or in auctions. The fact that these quotes are shown in the order books gives investors greater security for limiting their orders. Depending on the market segment involved, a stock may have one or more designated sponsors, or none at all. On arrangement with issuers, designated sponsors with the necessary capabilities may also provide research or investor relations services.

The specialist trading platform of which the Frankfurt Stock Exchange Open Market utilizes makes it one of the most competitive exchanges in the world for listing upon.

If you are looking to list on the Frankfurt Stock Exchange, contact info@fselistings.com

Here is the designated sponsors guide: http://deutsche-boerse.com/dbag/dispatch/en/binary/gdb_content_pool/imported_files/public_files/10_downloads/31_trading_member/30_Market_Making/20_Stocks/10_Designated_Sponsors/DS_Formulare/Designated_Sponsor_Guide.pdf

These days, the majority of Frankfurt Stock Exchange buy and sell orders are executed via XETRA, the electronic trading platform. Even so, almost all shares listed on the Frankfurt Stock Exchange are also tradable on the floor of the exchange by specialists called lead brokers, and commonly referred to as market makers. Each Frankfurt Stock Exchange traded stock has its own lead broker/market maker that is responsible for the stocks quote as well as for calculating the actual execution prices. The quotes are non-binding and are to serve as an orientation for the market. There is only one lead broker/market maker per stock. The lead broker compiles all buy and sell orders in the ‘order book’. These orders in the order book serve as the basis for the quote.

If you are looking to go public on the Frankfurt Stock Exchange, contact info@fselistings.com today!

Are you looking to go public on the frankfurt stock exchange, look no further and contact info@fselistings.com

For a quotation in continuous trading, it may be necessary, depending on the liquidity of the share, to engage at least one Designated Sponsor as a liquidity provider – regardless of admission to Prime or General Standard. In order to increase the liquidity in trading, Deutsche Börse recommends engaging two Designated Sponsors. Quotation in continuous trading is one of the prerequisites for inclusion of the share in the selection indices.

The liquidity of a share is measured on the basis of the Xetra Liquidity Measure (XLM)* and the average daily order book turnover.

The share is deemed to have sufficient liquidity when

• 1. Xetra Liquidity Measure = 100 bp (1 basis point = 0.01%)
• 2. average order book turnover = €2.5 million

If one of the two criteria is not met, at least one Designated Sponsor is necessary for admission to continuous trading.

The list includes all securities in liquidity category A which do not need a Designated Sponsor because of sufficient liquidity. Corresponding shares** of these securities are continuously traded. Securities, which are not included in the list, require at least one Designated Sponsor for continuous trading.

*The Xetra Liquidity Measure measures liquidity in the dimensions width, depth and immediacy.
**i.e., all other shares of a company admitted to trading, e.g. new shares, ordinary shares or preferred shares.

Xetra Liquidity Measure Liquidity is the central quality criterion for the efficiency of marketplaces in electronic securities trading. Liquid markets are for the benefit of investors as they allow exchanging cash and equities at minimum trading costs. Generally speaking, liquid assets can be converted immediately and at minimal costs into cash and vice versa.

  So far, liquidity has often been approximated by figures of trading activity for the sake of simplicity, e.g. turnover volumes, number of trades or transaction frequency. But trading activity does not truly reflect liquidity on an instrument level. With the Xetra Liquidity Measure (XLM), Deutsche Börse now provides an innovative concept to assess liquidity in electronic order book trading on the basis of implicit transaction costs. XLM measures the committed liquidity of the Xetra open limit order book by the Market Impact costs, in other words the costs of a immediate demand for liquidity. Market Impact costs are paid by investors who demand liquidity and are collected by investors who supply liquidity via limit orders. The provision of liquidity is thus rewarded and every transaction on a securities market leads to a redistribution of the Market Impact costs from investors demanding liquidity to investors supplying liquidity.

XLM quantifies these Market Impact costs in a single figure. The measure is calculated since July 2002 over the whole trading day for every instrument in continuous trading on Xetra. The lower the XLM the less Market Impact costs arise trading an instrument, the higher is the instrument’s liquidity and efficiency in order book trading.

The Xetra Top Liquids are determined by means of the Xetra Liquidity Measure. The XLM is presented in basis points (100 basis point = 1 percent) in relation to the Market Impact costs of a certain order volume for the round trip (opening and closing a position in one point of time). For example, a XLM of 10 basis points and EUR 25,000 order volume means that the Market Impact costs of buying and selling a certain instrument are equal to EUR 25. Deutsche Börse provides the Xetra Top Liquids on daily figures for the last trading day.

Please find more detailed information in the article “The Market Impact – Liquidity Measure in Electronic Securities Trading“.

Exerpt from the Deutsche Borse Website.

Designated Sponsors: Providers of Liquidity

The lead broker/market maker of a Frankfurt Stock Exchange traded security can also be hired by the public company to provide the function of designated sponsor. In a stock with lowtrading volume, it is often difficult for investors to buy or sell because there may not be another buyer or seller willing to trade at that particular time at the price offered. In such cases, buys or sells in the shares oftencauses large market price fluctuations. Basically, the designated sponsor provides investors with immediate liquidity and allows for continuous trading in the security by guaranteeing an appropriate trading margin and, thus, fair prices in XETRA (the electronic trading platform). The designated sponsor does this by entering binding buy or sell prices into the trading system for less liquid securities, thus preventing imbalances between supply and demand. Because the lower tiered segments of the Frankfurt Stock Exchange are often illiquid, the designated sponsor provides an extremely important function by enabling shareholders to execute buy or sell orders at anytime. Moreover, without the designated sponsor function, there is continuous trading on the floor of the Frankfurt Stock Exchange, but only one ‘auction’ per day on XETRA. Designated sponsors ensure that trading continues even when trading volume is low.  The service provided by the designated sponsoris valuable and includes advise and support in other areas not mentioned, but the service is not cheap. 

If you are interested in going public, contact info@fselistings.com to get you sponsored and listed today!

What determines the stock quote price of a new Frankfurt Listing? The initial stock quote for a new issue listed on the Frankfurt Stock Exchange is set by the market maker (otherwise known as the lead broker or specialist) and is determined by the buy and sell orders in the market maker’s order book. If there are no buy or sell orders, then the market maker will look to many factors, including but not limited to analyst valuations or price projections, pricing of prior private offerings, capital of the company vs the number of shares issued, and company assets. It is important to understand that the initial price reallydoesn’t bear much importance. What is much more important is where the share price goes after the initial stock quote is set by the market maker. This is determined almost exclusively by customer buy and sell orders in the market maker’s order book. Without customer buy and sell orders in the system, the market maker’s spread between the bid and offer will typically be very large. Conversely, with buy and sell orders in the system, the market maker can then reflect those orders in the publicly quoted bid and offer price. Thus, if for example there is a customer buy order at €3.00 and a customer sell order at €3.25, then the market maker’s quote will generally be €3.00 bid by €3.25 offer. The price at which initial orders are entered by customers in newly trading shares are usually quite arbitrary, and based on what the customer thinks the stock is worth, usually somewhere between the initial large-spread bid and offer. It is not unusual that, when a new issue begins trading on an exchange, there aren’t many public orders in the system. This is simply because at first, not many people know about the new publicly trading company. In fact, most of the time, the only buy and sell orders in a newly public company are from friends and family of the publicly traded company itself. Hopefully, once the company begins a quality IR/PR campaign and becomes more well known to potential investors, more and more people will buy the stock, resulting in more liquidity.

If you are looking to list or go public on the Frankfurt Stock Exchange than contact info@fselistings.com

About the Frankfurt Stock Exchange

Frankfurt, one of the world’s first stock exchanges, became a leader among eight German stock exchanges already in the middle of the 20th century by serving 90% of the German market today. From 1993, the blue-chip company Deutsche Borse AG is an operator of the Frankfurt Stock Exchange (FSE).

With more than 77,000 securities listed and 260,000 trades processed daily, Frankfurt Stock Exchange takes the position of the world’s third largest stock market and the world’s sixth largest by market capitalization. It has a total turnover of 5.2 Trillion � per year.

Although FSE exercises some traditional broker-supported floor trading, most of the trading is done via the fully electronic trading system Xetra that enables 15 countries trading on a single platform. With the location-independent system, even 47% of the FSE’s market participants come from abroad.

Currently about 6823 companies are quoted on the FSE. Based on stock market newcomers’ needs and requirements, they can enter the market in 3 alternative ways: Prime, General, or Entry Standard. Companies going public by Prime and General Standards are regulated by the EU rules. Whereas companies choosing the Entry Standard, which is one of the easiest ways to enter the capital market, are supervised by the stock exchange itself.

With current 79 index funds, FSE has the largest range of exchange traded funds in Europe. An investor has a choice of 55 passively managed index funds and 24 actively managed funds to trade in. Unlike classical funds, the prices of the FSE’s exchange traded funds are determined every minute in continuous trading and orders are exercised immediately.

Listing on the Frankfurt Stock Exchange can be completed within 3-6 weeks for under $100,000 which makes it the most accessible stock exchange of its size in the world. If you want to list on the Frankfurt Stock Exchange, contact info@fselistings.com today!

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The Frankfurt Stock Exchange and Xetra Listings

Our specialty is assisting non-EU companies for Primary Frankfurt Stock Exchange Listings

We are the premiere listing consultant for companies looking to list on the Frankfurt Stock Exchange. Our success is based on years of experience, personal relationships, and a professional team who have been partners of the Frankfurt Stock Exchange. Our partner firms have listed over 1500 companies on the Frankfurt Stock Exchange, of which we have participated in.

We Are Your Frankfurt Listing Consultant

If you are interested in taking a company public on the Frankfurt Stock Exchange, a listing consultant needs to help you accomplish this task. FSE Listings Inc is the quickest, most affordable listing consortium, with the ability to work end to end with relationships with Frankfurt Stock Exchange designated sponsors, Frankfurt Stock Exchange listing partners, and Listing agents, Banks, and Registrars for Electronic Trading.

The team behind FSE Listings Inc have direct experience as partners of the exchange for over 12 years, we are not just a team of lawyers and accountants, we complete every step of the process at a reduced rate than if you were to try to do it yourself or use any other go public process.

Our proprietary process has allowed for primary listing of German, UK, Chinese, Indian, South African, Australia, US, Canadian, Vietnamese, Philippines, Malaysian, and many other jurisdictions assets on the Frankfurt Stock Exchange. Foreign Corporations making a primary listing on the Frankfurt Stock Exchange require the assistance of professionals who know how to build a company and list that company within 3-6 weeks. No other consultancy can compete.

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FSE Listings Inc guarantees the success of your listing! www.fselistings.com

Contact us with your information!

Please include:

• Company Name
• Contact Name
• Contact Number
• Contact Email
• Amount of Capital invested to date
• Amount of Capital required
• Reasons for wanting to list
• Description of Business
• Website if available

Contact Robert Russell or Mark Bragg today!

• Robert Russell Russell@fselistings.com
• Mark Bragg Info@fselistings.com
•  New York: +1-914-613-3889
• UK: +44(0)2081235719
• Hong Kong: 81753591
• South Africa: +27110836116
• www.fselistings.com

(AFP) – 1 hour ago

FRANKFURT — Chinese fashion designer Kinghero launched on Friday its first international listing of shares in Frankfurt, a European stock market that is actively courting companies from the far East.

Kinghero placed one million shares and raised 15 million euros (20 million dollars) in the operation, the second by a Chinese firm here this year and the 23rd overall, market officials said.

“We are delighted that so many investors found our story convincing,” chief executive Yu Zhang said in a statement.

“As a fast growing company, the successful IPO (initial public offering) on the Frankfurt stock exchange gives us access to various financing options in the future,” he added.

Kinghero reported 2009 sales of 48.9 million euros, a gain of more than 50 percent. The firm forecasts double-digit sales growth this year.

At the value of the shares placed on Friday, Kinghero estimates its total market capitalisation at around 91.9 million euros.

The shares will trade on Deutsche Boerse’s Xetra electronic trading system.

Kinghero spokeswoman Zhao-Moll Xiaoping told AFP the company had chosen to list in Germany “because the Deutsche Boerse is very efficient, offers very quick access to the capital markets and is particularly well suited to fast-growing” small- and mid-sized companies.

“We could of course have registered in Hong Kong or on the Chinese mainland but that would take longer and cost more,” she said.

In addition, “an entry into the German market offers a very good reputation for our brand in China,” Zhao-Moll noted.

Christian von Dreising, executive director at the investment bank Silvia Quant, said the German stock market has actively courted Chinese companies which can find it hard to list on oversubscribed markets in their own country.

“Deutsche Boerse has done a first-class marketing job to attract Chinese companies,” von Dreising said.

If you are interested in listing on the Frankfurt Stock Exchange contact info@fselistings.com

FSE Listings Inc guarantees the success of your listing! www.fselistings.com

Contact us with your information!

Please include:

• Company Name
• Contact Name
• Contact Number
• Contact Email
• Amount of Capital invested to date
• Amount of Capital required
• Reasons for wanting to list
• Description of Business
• Website if available

Contact Robert Russell or Mark Bragg today!

• Robert Russell Russell@fselistings.com
• Mark Bragg Info@fselistings.com
•  New York: +1-914-613-3889
• UK: +44(0)2081235719
• Hong Kong: 81753591
• South Africa: +27110836116
• www.fselistings.com

August 5^th 2010, Franfurt, Germany, FSE Listings Inc (www.fselistings.com) has listed three companies on the Frankfurt Stock Exchange over the past 4 weeks. FSE Listings Inc remains ahead of any other firm in listing companies as a professional consortiumon the Frankfurt Stock Exchange Unregulated Listings. FSE Listings Inc is the only firm to their knowledge who can list a company in 3-6 weeks successfully without taking payment until after the success of the listing.

“One of the clients is in Oil and Gas Exploration, one of the companies is in Minieral exploration, and the third firm is an IT Company listing on the Frankfurt Stock Exchange.” Says Mark Bragg, Director of Business Development. “It is our 14^th client of the year for listing on a stock exchange via direct listing, it appears more companies are listing directly on the Frankfurt stock exchange than buying shells because it is quicker and cheaper to start from scratch with FSE Listings. It’s better for the market to have real companies listing the real way.” Says Bragg

Its not unusual for FSE Listings Inc to list more than one company a month, but it appears they have been getting accelerated interest in listing on the Frankfurt Exchange due to the ease of listing, access to european capital, and lower costs.

FSE Listings Inc has been operating as the Frankfurt Stock Exchange Listings Consortium since 2000, listing companies on the Frankfurt Stock Exchange and US OTCBB. With several hundred firms listed within the professional consortium of Listing Partners, Lawyers, Accountants, and Partners, FSE Listings remains one of the most successful and industry relied upon professional groups.

If you are interested in listing a company on the Frankfurt Stock Exchange in 3-6 weeks, contact info@fselistings.com.

In addition, if you are interested in becoming a partner and part of the global consortium representing FSE Listings, please contact FSE Listings at info@fselistings.com.

Current Partnership Countries:

• Thailand Frankfurt Stock Exchange Listings
• US Frankfurt Stock Exchange Listings
• Malaysia Frankfurt Stock Exchange Listings
• Australia Frankfurt Stock Exchange Listings
• South Africa Frankfurt Stock Exchange Listings
• Canada Frankfurt Stock Exchange Listings
• Australia Frankfurt Stock Exchange Listings

We are actively looking for Frankfurt Stock Exchange Listing partners within:

Asia Stock market:

• China Stock Market
• Japan Stock Market
• Philippines Stock Market
• Vietnam Stock Market
• Singapore Stock Market

East Asia Stock Market:

• India Stock Market
• Indonesia Stock Market

Middle East:

• Dubai Stock Market
• United Arab Emirates Stock Market
• Kuwait Stock Market
• Iran Stock Market
• Iraq Stock Market
• Afghanistan Stock Market
• Saudi Arabia Stock Market

Europe Stock Market:

• Russia Stock Market
• France Stock Market
• Italy Stock Market
• Ireland Stock Market
• Norway Stock Market
• Sweden Stock Market
• Netherlands Stock Market
• German Stock Market
• UK Stock Market
• London Stock Market
• Spain Stock Market
• Portugal Stock Market
• Greece Stock Market
• Poland Stock Market
• Romania Stock Market
• Bulgaria Stock Market
• Finland Stock Market
• Iceland Stock Market

Americas Stock Market

• Mexico Stock Market
• Canada Stock Market
• Peru Stock Market
• Chile Stock Market
• Brazil Stock Market

Contact info@fselistings.com today!

Firstly Prepare the documentation for your team of FSE Listings Consortium Consultants:

List of Required Documents and Information

• Certificate of Incorporation
• Memorandum
• Articles of Association
• Number of shares outstanding (as per incorporation documents) and par-value per share (also as per incorporation documents)
• Certified Copies of ID’s of the directors and supporting documents (please look at appendix A)
• Business Plan
• Financials (Opening Balance Sheet etc)
• Letter from Auditor with regards to paid in capital or a Solicitor who is holding the funds
• Letter from the CEO Certifying the paid in capital and number of shareholders within the company
• ISIN documentation completed and applied for by FSE Listings Inc

Second Step Documents

• Frankfurt Application Document Signed with above documents.
• Engagement Letter with the Registrar for Electronic Trading within your jurisdiction, For example CREST

1. Upon receipt of registration details create the register of members of ordinary shareholders.
2. Produce and issue the initial ordinary share certificates of entitlement.
3. Liaise with Euroclear UK & Ireland Limited (“EUI”) to ensure all procedures and documentation is in place to enable CREST eligibility of the issued ordinary shares.
4. Issue for signing and return by your firm both the CREST Security Application Form and CREST Enablement Letter.
5. Submit to EUI both the signed CREST Security Application Form and CREST Enablement Letter.

Secondly, ensure you have a consultant from FSE Listings Inc who can perform the following tasks with the documentation supplied:

Consulting Services:

• Initial due diligence
• Prepare and coordinate drafting of a Company securities prospectus/expose for admission to the Frankfurt Stock Exchange for IPO
• Liaising with company management for all due diligence documentation required in respect of the IPO listing
• Preparation of all other documents required for admission to trading and commencement of trading on the Frankfurt Stock Exchange
• Appoint and work with Share Registrar of Company to have shares registered
• Activate electronic share registration system with Share Registrar and share clearing system in Germany
• Joint presentation of the application for the listing of new shares for IPO by Company
• Liaison with Frankfurt Stock Exchange
• Drafting and coordinating publication of any mandatory announcements
• Application for the start of trading on the Frankfurt Stock Exchange for the Company’s IPO.
• Assist in transfer of shares via CREST/CLEARSTREAM into the electronic trading system.

Services include the cost of the Sponsor, Listing, Filings, Incorporation, and documentation preparation.

Contact info@fselistings.com today if you are interested in listing on the Frankfurt Stock Exchange!

FSE Listings Inc guarantees the success of your listing! www.fselistings.com

Contact us with your information!

Please include:

• Company Name
• Contact Name
• Contact Number
• Contact Email
• Amount of Capital invested to date
• Amount of Capital required
• Reasons for wanting to list
• Description of Business
• Website if available

Contact Robert Russell or Mark Bragg today!

• Robert Russell Russell@fselistings.com
• Mark Bragg Info@fselistings.com
•  New York: +1-914-613-3889
• UK: +44(0)2081235719
• Hong Kong: 81753591
• South Africa: +27110836116
• www.fselistings.com