Frankfurt Stock Exchange (FRA)
Frankfurt Stock Exchange, also known as the DAX group is the 10th largest bourse by market capitalization. It is located in Frankfurt, Germany. DAX group is owned and operated by Deutsche Borse, which in turn hold the European futures exchange Eurex and Clearstream clearing company. 90% of the German stock market turnover results from DAX group transactions. DAX group abolished floor trading in 2010 and now all trades are being placed through Xetra system. Following this development, all the floor brokers who were made redundant took a new role as market makers under the new platform. Notably, the DAX group have over 300 market participants from abroad. As an international trading hub, more than half of all these people are from different countries. In 2010, DAX recorded 49% companies from South and North America, 31% from Europe, 6% from Africa and Australia and 14% from Asia. DAX group have over 250 international trading institutions with more than four thousand five hundred traders total.
The DAX set a base value of 1,000 in 1997, but since 1999, the bourse have used Xetra prices to generate DAX indices. Clearstream provide clearing services for both the derivative contracts and cash markets. There are about ten million transactions being processed in one month and the amount of assets under custody of the bourse is ten trillion Euros. The DAX group index operates from 9.00 am to 8.00 pm Central European Time (CET) from Monday to Friday. Brokers post all the orders during the pre-trading phase, which is then followed by a call phase. The phase is referred to as price discovery period. The closing call leads to the actually closing of all sales deals.
The FAX bourse is run by a management team. However, there are also bodies that supervise trades all across the board. For instance, the Trading Surveillance Office supervises trading activities, the Federal Financial Supervisory Authority guards against violation of trade regulations, the state Exchange Supervisory Authority enforces sanctions and assesses any form of irregularity brought to it. Ideally, all these bodies work alongside with the objective of maintaining integrity of the bourse and protect investors’ welfare.
Singapore Stock Exchange (SGX)
SGX is an investment holding company located in Singapore. It was established in 1999 after the shares of prior exchange companies such as Singapore International Exchange, Stock Exchange of Singapore and Securities Clearing and Computer Services Limited were reversed and new shares issued and fully paid by the SGX. As such, all the assets previously owned by these companies fell under the ownership of the SGX.
SGX is the second largest bourse after Australian Securities Exchange being listed through public offering in Asia-Pacific. The company owns benchmark indices like straits Times Index and Singapore Free Index. The bourse provides various investment services such as derivatives and securities trading. SGX is a member of the Asian and Oceania Stock Exchange Federation and World Federation of Exchanges. Singapore Exchange trades from 9 am to 5 pm Monday-Friday. SGX operates numerous divisions that handle certain transaction process. These are – SGX DT (Derivatives trading), which offers derivatives trading. SGX ETS (Electronic Trading System), which provides global trading access to SGX markets. SGX ST (Securities Trading), which provides securities trading. SGX DC (Derivatives Clearing), which is a subsidiary for settlement and clearing operations. SGX Reach, which is an electronic trading platform and SGX Asia Clear that offers clearing system for over-the-counter forward freight agreements and oil swaps. Companies listed on SGX belongs either to SGX SESDAQ, or to SGX main board. In 2006, SGX and Chicago Board of Trade set up a joint venture, the Joint Asian Derivatives Exchange (JADE). This joint venture was later revoked in 2007 and the contract transferred to SGX’s QUEST trading platform. SGX has acquired 5% shareholding in Bombay Stock Exchange. The same year Tokyo Stock Exchange acquired 4.99% shareholding in SGX, but later on sold these shares to its holding company, Tokyo Stock Exchange Group.