Market participant

Market participant

Banks, financial services providers, financial institutions, and other firms that are admitted to an exchange for the purpose of trading in the relevant commodities or instruments. Market participants are represented on the exchange by individuals who fall into one of three categories: Exchange Traders, Exchange Brokers or Independent Brokers.

The Exchange Operating Board is responsible for deciding whether a prospective participant is to be admitted to trading on the exchange.

The most important prerequisites for admission to trading are as follows:

The firm must trade securities or foreign currencies on the exchange, or act as an intermediary for such transactions.

The brokers who represent the participating firm must demonstrate that they possess the necessary aptitude and sense of responsibility for trading on the exchange.

The firm must ensure that exchange transactions executed on its behalf are settled according to regulations.

In cases where the stock exchange regulations and directives provide for it, the firm must provide collateral to guarantee the settlement of transactions executed on its behalf.

More than 400 market participants are admitted to trading on FWB® Frankfurter Wertpapierbörse (the Frankfurt Stock Exchange).

Admission requirements are contained in greater detail in Section 16 of the Stock Exchange Act.