Follow-up obligations Open Market

Follow-up obligations Open Market

Research reports

With the publication of continuously updated qualitative research reports by research provider Edison Investment Research Ltd., commissioned by Deutsche Börse AG, investors receive a quick and informative overview of the company of the issuer. In order to prepare qualitative research reports, the research provider needs information from the issuer.  

 Obliged are issuers

  • in Scale for equities

Briefly, this needs to be done:

  • All information requested by the research provider
  • need to be provided to the research provider
  • in the by the research provider set deadline

Legal basis

This obligation is regulated in the General Terms and Conditions of Deutsche Börse AG for the Regulated Unofficial Market on Frankfurter Wertpapierbörse (GTC DBAG). In detail, the requirement results from Sect. 21 Paragraph 1 Let. c) GTC DBAG for issuers of shares and certificates representing shares in scale.

Qualitative and quantitative research reports

After inclusion in Scale research reports are to be continuously made available to interested investors on the shares and certificates representing shares of issuers included in Scale. For this purpose, quantitative and qualitative research reports are prepared.

The qualitative research report updates are two to four pages long and are written in English, with a summary in German. They contain, among other things, analyst assessments of the business model of the company and its competitive position. 

Obligation to provide information for the qualitative research report

Unlike for the quantitative reports, which are automated and prepared on a daily basis, Edison Investment Research Ltd., commissioned by Deutsche Börse AG, continuously requires information from issuers for preparing qualitative research report updates.  The research provider requests this information directly from the issuer and sets the issuer a deadline for providing the information requested.

Frequently asked questions

When can the issuer expect a request for information from the research provider?

The qualitative research reports are updated twice a year, generally within two weeks of publication of the annual financial statements and the semi-annual report of the issuer. In order to prepare these regular updates, the research provider requests the respective report as well as any other necessary information from the issuer with the necessary lead time and an appropriate deadline.

In addition, in the event of significant events at the issuer, the research provider prepares another, additional research report update. Significant events are, for example, issuer profit warnings, changes to the business purpose or significant changes in the operative business or in business performance. Here too the research provider requests the information required as a result of these events from the issuer with an appropriate lead time and deadline.

What happens if the issuer does not meet the obligation in whole or in part to provide information by the deadline set by the research provider?

In the event the issuer does not meet in whole or in part the reporting obligation by the deadline set by the research provider, the research provider sets an appropriate new deadline. The issuer again has the opportunity to submit the information and meet the follow-up obligation pursuant to Sect. 21 Paragraph 1 Let. c) GTC DBAG by the new deadline.

What happens if the issuer still does not meet the obligation in whole or in part to provide information by the new deadline set by the research provider?

If the issuer lets the new deadline pass to no effect, the respective research report will be published using the information available at that time. The missing or incomplete sections of the report will be sufficiently clearly marked for third parties. The research report updates will also disclose whether these parts were not provided by the issuer despite being requested to do so and for this reason are not contained in the report or whether there were other reasons why it was not possible for the issuer to provide the information.

What measures can Deutsche Börse AG take after the new deadline set by the research provider has elapsed if the issuer still has not met the obligation to provide information for preparing the research report updates?

If after the new deadline set by the provider has elapsed the obligation to provide information to the research provider still has not been met, Deutsche Börse AG has the right, in accordance with Sect. 24 Paragraph 2 GTC DBAG, to publish this fact on its internet site naming the issuer by name.

As a last resort, Deutsche Börse AG can terminate without notice inclusion in Scale subsequent to the elapsing to no effect of a further deadline set by DBAG itself (see Sect. 27 Paragraph 1 and 2 GTC DBAG).

Contact

Rule Enforcement

Phone +49 (0) 69 - 211 – 1 38 88
E-Mail: rule-enforcement@deutsche-boerse.com

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