The Frankfurt Stock Exchange & the Elimination of the First Quotation Board

Securities Lawyer 101 Blog

On December 20, 2011, Deutsche Börse AG suspended new listings from the First Quotation Board due to fraud and suspected market manipulation on the First Quotation Board. Deutsche Börse AG stated, “Prosecution according to criminal law and supervisory legislation only seems to have a limited deterrent effect. Against this background and for the purpose of protecting the capital market and particularly the investors, Deutsche Börse AG has decided not to list any shares and certificates representing shares in First Quotation Board.”

Announcing the suspension of new listing applications in Open Market Circular No. 05/11, Deutsche Börse AG also reminded all market participants of their obligation under § 10 of the German Securities Trading Act to report any suspicion of market manipulation to the German Federal Financial Supervisory immediately.

Deutsche Börse AG indicated that it is currently examining, together with the Hessian Exchange Supervisory Authority and the German Federal Financial Supervisory Authority further measures in order to guarantee orderly exchange trading for the capital market and particularly for the investors and to maintain the quality of future segments.

Issuers who want to list their shares on the First Quotation Board now have to locate a Frankfurt listed shell company in order to do so. Qualified issuers can continue to list on the Open Market. This requires among other things that the issuer fulfill ongoing transparency requirements which include publishing the following on the listed company’s website:

i. Audited consolidated financial statements and management report (in accordance with provisions of the national accounting standards like the German Commercial Code, HGB or International Financial Reporting Standards) no later than six months after the end of the reporting period;

ii. Publication of a brief, up-to-date company profile and a calendar of company events;

iii. Publication of the interim report no later than three months after the end of the first half of the fiscal year. There is no minimum content requirement for the interim report. Simply put, using figures and explanatory notes, the interim report should give a true and fair view of the issuer’s financial position and general business trend during the first six months of the financial year (reporting period); and

iv. Immediate publication of information that could have a significant impact on the price of the listed shares.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton Florida, (561) 416-8956, by email at info@securitieslawyer101.com or visit www.securitieslawyer101.com.   This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490Rule 506 private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or info@securitieslawyer101.com. Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com

 

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