Regulation light - Germany's entry standard

Mehr zum Buch

On 25 October 2005, Germany launched a new stock exchange segment, the Entry Standard of the Frankfurt Stock Exchange, aimed at small companies seeking a streamlined listing process. Modeled after London’s Alternative Investment Market (AIM), which attracted nearly 3,000 firms from 1995 to 2007, the Entry Standard stands out with its minimal regulatory framework—just three pages of rules govern public listings. As part of the alternative stock markets, it offers less regulation compared to traditional EU Regulated Markets, which many small companies find overly burdensome due to high costs and extensive administrative requirements. This work aims to analyze and evaluate the Entry Standard from various perspectives, focusing on the differences between state regulation in Germany and exchange regulation. It will compare the success factors of the Entry Standard with those of the Regulated Market, the former Neuer Markt, and other European exchange regulated markets. The analysis will demonstrate that the Entry Standard represents a paradigm shift, highlighting how exchange regulated markets can effectively address the “equity gap” faced by small and medium-sized enterprises.