Folclore on the German floor

Crowded trading floors with gesticulating dealers and brokers still belong to the typical imagery of a stock report from Frankfurt. The exchange is the populated floor, and the floor is the exchange. At least that's what a lot of investors still believe. Yet, due to the technological changes within the last decade, floor dealers have been continously loosing their former impact. Today in Frankfurt all blue chips are exclusively traded on the fully electronic exchange platform Xetra. Only after 17.30, when Xetra takes a break, the floor comes back into action. Apart from that the floor only trades foreign stock and some German small caps.

Still, the floor has not lost its influence as a suitable PR instrument. All the tv cameras of stock reporters and financial newspapers still use the floor imagery as background. Reto Francioni, CEO of the Deutsche Börse AG, is fully aware of that. If he wants to convey a positive and lively image of the exchange, he needs to offer some 'folclore' to the investor. This is maybe the reason why Reto Francioni has recently decided to invest the sum of six million euro (around $8 million) in the revamp of Frankfurt's trading floor. Some traditions certainly live longer in the hearts and minds of many investors. Ask yourself: would you like to see a row of computers to represent a stock market?

Source: Frankfurter Allgemeine Zeitung (FAZ)





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