How to subscribe securities via the stock exchange

With the offer to subscribe to securities via the stock exchange, new issues are accessible to all investors via the normal securities account before they commence trading. In addition, there is no trading fee. Shares, bonds, certificates and funds are now placed with investors in this way. 

Drawing is as simple as ordering, but works differently for each asset class. This explanation refers to bonds. 

If issuers wish to offer a bond directly on the stock exchange when it is issued, they can choose between two transparency standards: Scale for bonds or Prime Standard. 

Bonds in the Scale segment are fixed-interest securities of small to medium-sized companies that finance themselves in this way with borrowed capital. The issuers come from different sectors. The denomination of the bonds is nominal private investor-friendly with a maximum of EUR 1,000. This means that you can participate with a comparatively small investment. The subscription takes place directly via your house bank or online bank, there are no stock exchange fees. After the issue, the bonds are traded on the Frankfurt Stock Exchange. 

In order to be included in the Scale segment, companies must meet certain transparency requirements. This provides investors with simplified access to key performance indicators and enables them to better assess risks. 
Scale bonds provide easy, low-cost and direct access to investments in bonds issued by small to medium-sized companies. They are suitable for experienced investors who want to benefit from the advantages of a bond with significantly higher interest rates compared to government bonds, but who are also aware of the associated considerable risk.

Erklärfilm zur Zeichnung

Transparency for investors

The transparency requirements for issuing companies ensure that investors have access to important information. Prior to the issue, companies publish a securities prospectus, a company profile with a company calendar and audited annual financial statements. If a company is not yet listed on the regulated market, the credit rating by a rating agency recognized by Deutsche Börse and the disclosure of key balance sheet figures are also mandatory. 

Using the key figures, investors can compare individual companies with each other. All information on the company, including key figures on debt service coverage, indebtedness and capital structure, can be found on the Internet pages of the issuers and on the website

After the issue, the companies publish current annual and semi-annual reports as well as annual follow-up ratings and key balance sheet figures. There is no obligation to publish ad hoc announcements. However, issuers are required to inform the public quickly about any price-sensitive changes.

Off to trade 

Subscription in the primary market is followed by commencement of trading in the secondary market. The first stock exchange price will then be determined from 9 a.m. on the Frankfurt Stock Exchange and all investors will be able to participate live on the Internet. By the way, one of the most exciting moments on the stock exchange is when companies find out how they are valued by the market. If the subscription to a bond is closed early due to high demand, it is usually traded directly before the originally planned first trading day.

  • Brochure: Subscribing shares, bonds and funds via the stock exchange

© June 2019, Deutsche Börse AG