Specialists

Specialists

Traders who oversee order execution on the Frankfurt trading floor.

At the Frankfurt Stock Exchange, securities trading is supported by specialists who monitor the execution of buy and sell orders. For each security only one specialist is responsible and manages its order book. Unlike in continuous Xetra® trading, the order books in floor trading are closed. The market model of continuous auction is used for the executions, i.e. when executable orders enter the book, the specialists initiate an auction in the trading system in which the prices are determined, and the orders executed.

For less traded small and mid caps, the specialists ensure liquidity; for securities with a reference price such as foreign shares, funds or certificates, they make trading possible in the first place.

Behind the barriers – this is how the round workplaces of the traders on the trading floor are named – there were official stock brokers until 2002 who were sworn in by the exchange supervisory authority and often brought together buyers and sellers. With coming into effect of the Fourth Financial Market Promotion Act in July 2002, it was lead brokers who set buying and selling prices for the securities they handled and executed the orders. Since May 2011 there are only specialists. Price fixing now takes place in the system, but the specialists monitor the trading.

Specialists are employees of securities trading banks and service providers.

Which specialist is in charge of a certain security is listed on their data sheet at boerse-frankfurt.de.