The Regulated Market is an organized market in the sense of the German Securities Trading Act (WpHG). This means that the admission requirements and follow-up obligations of the participants as well as the organisation of trading itself are regulated by law.
Admission under public law
An issuing company must undergo a public admission procedure before it can commence trading. Among other things, the company must have existed for at least three years and issue at least 10,000 shares. 25 percent of the shares must be in free float. The company must submit an admission prospectus showing its balance sheets, income statement and cash flow statement for the past three years. The language of publication is German, for foreign issuers also English.
Companies participating in the Regulated Market also have to fulfil post-admission obligations, such as the publication of their annual financial statements and an interim report for the first six months of the financial year.
Formerly Official and Regulated Market
On November 1, 2007, the previously existing subdivision of the organized admission segments into the Official and Regulated Markets was abolished with the Regulated Market. Securities that were admitted to the Regulated Market or the Official Market before 1 November 2007 have been considered admitted to the Regulated Market since 1 November 2007.
Companies in the Regulated Market can choose between the two segments Prime Standard and General Standard. For shares, the transparency requirements for the company depend on the selection of the segment.
June 2019, © Deutsche Börse AG