Germany

Deutsche Börse AG – Quo Vadis?

Rüdiger Litten and Till Schöppe, Norton Rose Frankfurt

Germany is saying “Aufwiedersehen” to the Neuer Markt, its answer to the US Nasdaq Stock Market, after five and a half years of operation and a string of scandals. With their announcement of 26 September, the Deutsche Börse AG (“DBAG”) presented proposals for a new equity market segmentation. As the capital markets tremble and the trust of investors vanishes, the DBAG has also issued new Going Public Principles (the “principles”), which became effective on 1 September 2002. The decision to close down the Neuer Markt is hardly a surprise. The technology-heavy Neuer Markt has plunged by more than 95% since its high two-and-a-half-years ago at the height of the Internet bubble. Trading has all but ceased, and only one company has made an initial public offering (IPO) in more than a year.