Aim of the projectI always had an interest and curiosity to know and understand the recent trends of global stock exchanges. Also, the topic is very relevant to my course, MBA (International Business) and highlights one of the most important international business issues. I also believe that the topic is very intense and interesting in it, and will become more challenging with the progress of research. Apart from gaining a thorough knowledge of the global stock exchanges, my aim of researching this topic is to obtain good grades in this subject. The present piece of work is just a framework of my final dissertation and a huge amount of research and introduction of many theories and concepts is still going to be done later. This dissertation proposal may not be a very satisfying piece of work as due to the lack of time I was unable to include everything, but I can assure the reader that my final piece of work, my dissertation will going to very good. In this proposal I have mainly presented my ideas as how I have thought of conducting this research.

Objective of the projectStock exchanges were earlier regarded as public entities but now they are considered as organisations from where traders can maximise their profits. This is due to the reason of growing competition and integration among the global stock markets. Similar to the multinational companies, in order to grow big and to have an edge above the other competitors, the global stock markets also merge with each other. The object of researching this topic is to analyse the effects of merger activities of the global stock exchanges and the growing competition between them. I will also try to shed some light on the impact of globalization on the stock markets. The work will also explore the strategies used by these stock exchanges to show their competitiveness. Also, I will be doing a case study of the merger between London and Frankfurt stock exchange. I will try to remain strict with my topic but while doing the research if I feel that a slight modification can enhance the topic area, I might go with that.

Stock ExchangeBefore starting with the proposal plan, let us understand what does the term stock exchange actually means? According to Carmine Di , the stock exchange can be viewed as three ways: The stock exchange as a broker dealer, the stock exchange as a firm, and the stock exchange as a market. A stock exchange is an institution or corporation which hosts a market that provides facilities for trading stocks, bonds and other securities to the traders and stock brokers. The traders, sellers and buyers use to come here during the specific hours of the business days to do their trading. The stock market also facilitates the capital events such as payments of dividends and income. There are certain rules that are imposed on the trading companies and the traders involved in these. Any company that is being traded on the stock exchange is referred as listed.

Globalization of stock marketsThere has been an increase in the integration of the financial markets globally and the global stock exchange is moving very rapidly towards globalization with the increasing number of cross border transactions. There impact of globalization is still not very clear as there are both advantages and disadvantages of this phenomenon. In one of the ways, the impact of globalization has impacted with enhancing the national economies but on the other hand there is an increase in trading instability and price volatility. Whatever may be the outcome, the reason behind globalization is to grow big and increase competitiveness. The most significant development that has occurred in the last decade is the globalization of the world stock exchanges. According to Dr Sabri, he major factors responsible for this are, Remote access for trading the securities, Liberalization trends and ease of restrictions imposed on foreign ownership, Technological advancements, Emergence of new financial institutions, Movement towards regional integration of stock exchangesExperts believe that the phenomenon of globalization may be blessing as it lowers the risk due to diversification, use of arbitrage in a relevant manner and improvement of market efficiency. But also, due to the high level of correlation between different stock exchanges, the globalization may result in price volatility and instable trading. Examples of competition of the stock exchangesAccording to Steil (1996, b) there was an era when exchanges were natural monopolies, but the structure of the global stock exchanges have changed dramatically during the last decade. Especially in USA, the examples of competition are not new. In 1885 the consolidated stock exchange decided to trade the NYSE listed stocks, charging lower commission due to its lower costs because it used the NYSE quotes and did not incur the cost of establishing the pre discovery mechanism (Mulherin et al., 1991). Later, the London Stock Exchange reformed in 1986 and decided to trade the most important European stock, on its international segment (SEAQ international). The European securities had to update their market because after the reformation, the London Stock Exchange gained a significant share of market. There were some of the examples of the competition among the global stock exchanges.

MethodologyFor doing an intensive research, there are many research methods and strategies available in order to conduct the piece of work. Selecting a research method is a very crucial step that decides the quality of the proposed research. Selection of a proper research method helps in getting the project done in a systematic manner with proper conclusions, thus enhancing thus quality of the work. On the other if the research method is improper, that it might result in an unsystematic report with a decreased quality of work. Now, over here, the topic itself is very broad and intense, so in order to deduce results and arrive at a particular conclusion; I will be doing the research by using both qualitative and quantitative research methods.

I will be using the following approaches, Case Studies: I will be doing an in depth strategic analysis of the London Stock exchange. This will help me to analyse the internal and the external environment of this stock exchange. Also, it will help me evaluating the strategies of London Stock Exchange towards the increasing global competition. In-depth interviews: I will be interviewing some of the major stock brokers, financial experts and traders of the London Stock Exchange in order know their views and comments on this topic. This will help me in the conclusion part of the research. It might be a difficult job for me to have an appointment and interviewing them, but I will try to find out some way in order to get it them. Focus groups: For this, I have mainly thought of doing the interviews with three focus groups, the group of investors, the stock brokers, the sellers.

Data collectionThe major portion of my data will be coming from the existing sources like journals on finance and economics that concerns with issues of global stock exchange competition, mergers and integration. This portion of data will be the secondary source of data. The sources of secondary data will be the journals, articles, literature, books and internet. The secondary data will give a foundation to my project because on the basis of the theories and the business models summarized from the secondary source will develop a concept upon which I can process my research. Since this will be a major project, I will try to emphasise more on the journal articles and try to research not less than 25-30 journals. My secondary emphasis will be on books and at last I will be extracting articles from internet.

The secondary data will help to analyse the topic, developing a conceptual background, the interviews of the major stock brokers, financial experts and traders of London Stock Exchange will act as the primary set of data. The importance of primary data will be that, it will help me to arrive at a conclusion. I have chosen to interview these experts because they will give their views and comments on the basis of their practical experience, since due to the intensity of the topic, it definitely requires a mature and experienced views. Though the major portion of the ideological views I will be getting from my secondary data, the journals articles written by leading economists and researchers. During the collection of the primary data, there is a possibility that I might not get enough time to have a conversation with the traders or stock brokers. In that case, I might just ask them to fill up a small questionnaire. I will try to get the

Data analysisAfter I am done with the theoretical aspects of the global stock exchanges, their competitiveness, their merger activities etc., i.e., after I am done with my secondary data, I will try to conceptualize the important points into some kinds of small models. The reason as why I will be conceptualizing them into small models is that, as I will be reading articles written by different economists and researchers of different period, there is a sure possibility of getting different views and ideas. Since the sources will be more, it will be difficult to conclude each and every view. Conceptualizing them into groups or models might make the project systematic and easily understandable. It will also help me arrive at a proper conclusion. After this, I will start the case study of London Stock Exchange. During this case study, when it will come its analysis part, I will try to implement the models that I will try to conceptualize using the secondary data, on the analysis part of the case study of the London Stock Exchange. If I can, I might include an additional case study of another stock exchange. Analysing it with the same models will help me infer an unbiased conclusion. So, if I had to do a case study of another stock exchange, I will go with either an Asia stock exchange or an American stock exchange. When it will come to the analysis of the primary data, i.e., the interviews, the first thing Ill going to make sure that there will be Ill try to have a personal conversational face to face interview instead of questionnaires. By doing this I will be able to read their body language and facial expressions. This might help me to deduce better inferences.

Time scale and planI have planned to give 3 months to this research. In whole three months, I will try to finish my project. My planning is as follows, I will start with building up the theoretical background and concepts. For this I have planned to give it around one and half months. During this time Ill try to go through as much as articles and journals I can. Within this time, I will make a rough conclusion on the basis of theoretical aspects of this topic. I actually want to be theoretically sound as much as I can before going for the interviews of the experts, in order to make sure to take the full advantage of the interview utilizing my developed theoretical knowledge. For the next 1 month I will be conducting the interviews. And for the last 15 days I will be drawing the conclusion and revising my work.

How the Stock Market Works Why Do Companies Issue Stock? Companies throughout the world issue new stock shares every day. But what is stock, and why does a company issue it. Businesses issue stock to raise capital. Advantages of issuing stock: 1. A Company can raise more capital than it could borrow. 2. A Company does not have to make periodic interest payments to creditors. 3. A Company does not have to make principal payments.

Advantages for Stockholders As part owner of a corporation, you may be entitled to share in the profits of the company. There is also a chance that the company will grow and the price of the stock may rise. If the company achieves economic success, the stock value will go up and stockholders will benefit. For example, if you invested $1,000 to buy 100 shares of a company at $10 each and the shares rose to $13 each you would gain $300. This is equivalent to a 30% return. In cases like this, both the stockholders and the business would be pleased. Initial Public Offerings (IPOs) The very first sale of stocks to the public is called an initial public offering (IPO), and occurs on the primary market. This tutorial will cover the following factors involved in initial public offerings: The Process of Issuing Securities The Basics of Underwriting Types of Underwriting Arrangements The Prospectus Ways a Stock May Be Advertised Before it is Sold Newly Issued Stocks: Getting the Names Straight

The Process of Issuing Securities Corporations sell stock to the public as one way to raise capital. Before it can issue new stock, a corporation must first file registration statements with the Securities and Exchange Commission (SEC) www.sec.gov. A twenty-day wait is required before it can sell the stocks. The issuing company may make their registration statement public with a preliminary prospectus called a red herring that summarizes the registration statement. Basic information about the new offering is also provided, including how many shares are being offered and which brokerage companies will distribute the stock to the public. At the time of issue, a final prospectus is presented. This includes the price of the stock (its offering price).

The Prospectus Prospectuses are legal documents that explain the financial facts important to an offering. They must precede or accompany the sale of a primary offering. The law requires companies selling primary offerings to send prospectuses to anyone who wants to buy a primary offering. Prospectuses may also be used to solicit orders. Customers should read a prospectus carefully before purchasing any primary offering. Prospectuses include but are not limited to the following: Offering price Legal opinions about the issue Underwriting method The history of the company Other costs related to investing in the stock The management team The handling of proceeds

The prospectus must be provided to customers before they complete any transactions. It must also include the SEC's disclaimers that it does not approve or disapprove of the stock being offered, and that it does not judge the prospectus' statements for accuracy. Stock Market Players As an investor, you need to be familiar with the different players in the investment arena and how they buy and sell securities. Broker-dealers, registered representatives and the others have specific roles in clearing the way for commerce in securities. The Life of a Trade The life of a trade can vary a great deal depending on whether the trade involves a listed, Nasdaq or over-the-counter bulletin board security. The following description is intended to give you a general idea of how the process of trading stocks works. Trading is based on supply and demand. When you buy or sell a stock, you are literally trading with another investor someone in your city, across the country or on the other side of the world. An order from you to buy a stock must be matched with a seller's order to sell. If you place an order on the Nasdaq, or one of the many other exchanges, this match may be done electronically. If your order is sent to the trading room floor of one of the exchanges, the auction process begins. A member of the stock exchange walks to the appropriate trading area where your stock is traded and presents your order. Sometimes there will be a broker in the crowd with a sell order at the same price. In this case your order will be completed or filled. Brokers must often act quickly or risk missing the market. If a broker hesitates, a competitive bid could be placed, driving up the market price for the next trade. The broker may also hand your order to a specialist. The specialist is a person in each trading area, whose job is to guarantee a fair and orderly market by matching buys and sells or by buying or selling themselves if needed. When an order is away from the market, it can be placed under a specialist's care. From this point on the specialist is in charge of representing your order. If you placed a GTC order with us, it would stay open until it is filled, canceled by you, or until the last day of the next calendar month. If the order is filled, the broker or specialist will report the fill to us. You can choose to be contacted by phone, fax or e-mail. Of course, if you monitor the Order Status section of the website, you can also see when the order is filled. You will also receive a U.S. Mail copy of your order confirmation and fill. You should check your order confirmation carefully no matter how it is received. Once the order is filled another process kicks into place; one which is generally invisible to you. First the fill is reported to the Market Data System of the exchange. This system transmits the trade details such as the stock name, the number of shares traded and the price of the trade to all interested parties through the ticker tape. The trade can be seen online, TV or through other media by the investor and other interested parties. The ticker tape will also update the information (sometimes with a time lag) on your Quote Monitor. The tickets sent to your brokerage firm and the brokerage firm of the person who bought or sold the stock from you is entered into a computer. Over the next few hours, the two trades are matched to make sure they agree. If they do not agree, the brokers meet again to settle any differences. This will not affect your fill. Once agreement is ensured, the settlement process begins. Settlement of the trade generally occurs three business days from the actual trade date. Upon settlement the brokerage firms exchange (usually electronically) the stock certificates and the money for the stock. Understanding Bull & Bear Markets Simply put, bull markets are movements in the stock market in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high, jobs are plentiful and inflation is low. Bear markets are the opposite--stock prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation. In either scenario, people invest as though the trend will continue. Investors who think and act as though the market will continue to rise are bullish, while those who think it will keep falling are bearish. The basics of bull and bear markets will be reviewed in this tutorial. Specifically we will cover the following: What Drives Bull and Bear Markets? Predicting Bull and Bear Markets Investing During Bull Markets Investing During Bear Markets

What Drives Bull and Bear Markets? What causes bull and bear markets? They are partly a result of the supply and demand for securities. Investor psychology, government involvement in the economy and changes in economic activity also drive the market up or down. These forces combine to make investors bid higher or lower prices for stocks. To qualify as a bull or bear market, a market must have been moving in its current direction (by about 20% of its value) for a sustained period. Small, short-term movements lasting days do not qualify; they may only indicate corrections or short-lived movements. Bull and bear markets signify long movements of significant proportion. There are several well-known bulls and bears in American history. The longest-lived bull market in U.S. history is the one that began about 1991 and is still climbing. Other major bulls occurred in the 1920s, the late 1960s and the mid-1980s. However, they all ended in recessions or market crashes. The best-known bear market in the U.S. was, of course, the Great Depression. The Dow Jones Industrial Average lost roughly 90 percent of its value during the first three years of this period. There were also numerous others throughout the twentieth century, including those of 1973-74 and 1981-82. Concluding Remarks There are many investment methods that seasoned investment professionals use to take advantage of opportunities during bull or bear markets. Methods such as dollar-cost averaging, selling short, and diversification exist. Understanding well-founded strategies will help you to improve your chances for superior performance in either market environment. How It Starts News about a company hits the wires, like: An Initial Public Offering (IPO). Change in a company's earnings, positive or negative. Recommendation by an analyst or publication.

Know What You're Buying What do you know about the company you're buying? Have you researched it? Buying a stock on impulse or hearsay isn't smart investing. Be sure the company you're buying a piece of is one you really want. Be Aware of How the Trading Process Works Educating yourself about investing is an ongoing process. If you're a new investor or need a review of trading procedures, pick up a book like The Wall Street Journal Guide to Understanding Money and Investing, take a virtual trip to the New York Stock Exchange on the Web at www.nyse.com (click on Education), or locate an investing club in your area through the American Association of Individual Investors at www.aaii.com. Stay on Track with Your Investment Strategy When you're considering a stock, first see if the company meets your investment objectives. If you haven't formulated an investment strategy yet, now is a good time to start. Begin by determining your goals and your time horizon, then choose the investments that will best meet them. Weigh the Risk . . . Before You Click Before you place a market order for a volatile stock, ask yourself how much you could afford to lose in the event of sweeping price fluctuations. Don't risk spending more than you can afford. Timing Is Everything If you're planning to place an opening market order, make sure your order is entered before 9:20 a.m. Eastern Time. Otherwise, your order may not queue until after the pre-open is completed. At the end of the day, enter market orders at least 10 minutes before closing or your order may not be executed. Why Watch Market Indicators? A common and effective way to gain perspective on stock price fluctuations is to compare the movement of your stocks to that of indices or market indicators. About 100 years ago, as the number of individual stocks grew, the need to measure how the stock market performed became obvious. In 1896 The Dow Jones Company took groups of stocks and averaged their prices to create the first indices, the Dow Jones Averages. They created four different indices: one for industrial companies, one for utilities, one for transportation companies and a composite that included the three other indices. In the 1920s, Standard & Poor's Corporation (S&P) created separate indices. These indices also measured the market as a whole in addition to some sectors of the market. In 1957, when technology enabled the companies to start calculating their indices on an hourly basis, S&P created the S&P 500 Index, which measured the performance of a larger proportion of the market compared to the more popular Dow Jones Industrial Index. Over the years, the S&P and Dow Jones indices have remained popular, leading both companies to create other indices. In addition, other companies and even the exchanges themselves have created more indices. Different indices are calculated in different ways. Few remain as simple averages. An index moves when the stocks in it move. When a stock in an index goes up or down, so does the index. Hence, when you hear that the Dow Jones closed at 10,500, down 20 points for the day, it means that the average of the prices of the 30 stocks that comprise the Dow is 10,500 and the combined value of these 30 stocks (as calculated by the index) dropped 20 points during that day's trading. Calculation method aside, all indices measure the performance of the stock market or some subsection of it on a continuing basis throughout each trading day. By tracking an index, or a variety of indices, investors can quickly gauge market trends that may impact investment decisions. What is the point of following the indices when what you care about is your own stock portfolio performance? Indices often reflect trends in the market and in the economy. Watching overall market performance can be the key to making smart decisions about your individual investments. For example: Indices can function as benchmarks to compare the performance of the stocks you own against the market in general. Comparing today's market movement with similar market movements from the past may help you become aware of trends, and the best times to buy or sell.

Dow Jones Industrial Average One of the best-known market indicators, the Dow Jones Industrial Average, is comprised of 30 leading companies. Calculated by adding the prices of these 30 stocks, the Dow is now considered a figure that indicates the general state of the market. Originally, the Dow divided the sum of the prices of the 30 stocks by 30, giving a true average. However, to be consistent every time a stock split or paid a dividend, the number 30 had to be adjusted. Now, over 100 years later, the sum of the prices of the 30 stocks is divided by a number less than one! Since a $1 movement in the price of a $100 stock counts equally with a $1 movement in the price of a $20 stock, the Dow Jones is considered a price weighted index. Dow Jones Chart 9/13/99 1:37 PM

Last: 11,033.49

Change: +5.06

Open: 11,027.40

High: 11,042.36

Low: 10,982.20

Volume: 35,816,500

Percent Change: +0.05%

Yield: 1.58%

P/E Ratio: 27.99

52 Week Range: 7,399.38 to 11,428.94

Charles Dow designed the average to represent the current business market, which in 1896 included industries such as sugar, leather, tobacco, gas, rubber and coal. Today the DJIA is led by retailers, oil, technology, pharmaceutical and entertainment companies. The only company on the original list that is still included today is General Electric. S & P 500 Index Created in the 1920s by the Standard and Poor's Corporation (S & P), this index tracks 500 companies in leading industries: transportation, utilities, financial services, technology, health care, energy, communications, services, capital goods, basic materials, consumer products, cyclicals and more. Many consider it the most accurate reflection of the U.S. stock market today. This high regard has led many money managers and pension plan administrators to use it as a benchmark for judging the overall performance of their fund against the stock market. Since the calculation for this index equals the price of each stock multiplied by the number of shares held by the public, the companies with the most shares make the greatest impact. This is known as a market weighted index. Nasdaq Index This index tracks the stocks on the National Association of Securities Dealers Automated Quotation System (Nasdaq) stock market. Since many new companies elect to join the Nasdaq, the number of stocks on the Nasdaq has grown from 100 to more than 5,500 today. Because this index includes many companies in the technology sector where market trends change quickly, this index can be volatile Ameritrade Online Investor Index The Ameritrade Online Investor Index tracks the daily buying and selling activity of individual online investors at Ameritrade, Inc. While most major market indices include the activity of institutions and mutual fund companies, the Online Investor Index is unique in that it helps you understand what individual investors are doing in relation to the stock market. The Online Investor Index does not measure price changes or volume-other indices do that. Instead, the Index measures buyer participation as a behavioral indicator related to investor confidence.

About the Frankfurt Stock ExchangeThe roots of FWB Frankfurter Wertpapierbrse (Frankfurt Stock Exchange) go back to the period of medieval fairs. The Frankfurt autumn fair is first mentioned during the Assumption holiday in the year 1150. The autumn fair is believed to have had its origin in the 11th century as a harvest fair. Since the year 1330, when Emperor Ludwig the Bavarian expanded this privilege to include a spring fair as well, the city became an important center for commercial and monetary transactions. As a result of the trading activity during the fair, the manufacture of goods on order gradually developed into merchandise production for an open and nationwide market.Already at the beginning of the sixteenth century, due to its well-known fairs Frankfurt had become so prosperous that Luther termed the city 'the silver and gold hole' of the German Empire. Through the immigration to Frankfurt of Dutch and French merchants who had been persecuted because of their Protestant belief, during the sixteenth century wholesale commerce and the banking sector also became established in Frankfurt. Merchants from all over Europe came to Frankfurt in order to engage in trade.Since there was still no single currency either in Europe nor in the German Empire, and the various countries fell apart into numerous small economic regions with their own monetary systems, payment was based on a large variety of coins. Because of this, monetary transactions in Frankfurt proved to be extremely troublesome. The confusing abundance of means of payment and the free exchange rates made it easy to engage in usury and swindles. To counter the deterioration of coinage, merchants at the fair met in 1585 in order to establish uniform exchange rates. Today, this event is regarded as the moment of the Frankfurt Stock Exchange's birth.

FWB Frankfurter Wertpapierbrse (the Frankfurt Stock Exchange) is one of the world's largest trading centers for securities. With a share in turnover of more than 90 percent, it is the largest of Germany's seven stock exchanges. Deutsche Brse AG operates the Frankfurt Stock Exchange, an entity under public law. In this capacity it ensures the smooth functioning of exchange trading in Frankfurt.The Frankfurt Stock Exchange facilitates advanced electronic trading, settlement and information systems. Thus, it is able to meet the steadily growing requirements of cross-border trading. Besides traditional floor trading, its fully electronic trading system Xetra is one of the leading electronic trading platforms in the world. With its launch in 1997, the Frankfurt Stock Exchange succeeded not only in strengthening its own competitive position. It also created attractive framework conditions for foreign investors and market participants.Today, the Frankfurt Stock Exchange is an international trading center. This is also reflected in the structure of its participants. Some 140 of around 300 market participants come from abroad.

Management Board of the Frankfurt Stock Exchange

As the executive body of FWB Frankfurter Wertpapierbrse (the Frankfurt Stock Exchange), an entity under public law, the Management Board is responsible for all tasks not expressly assigned to other exchange bodies. The legal foundations for the activities of the Management Board are anchored in the Stock Exchange Act. In accordance with its provisions, the Management Board is responsible for managing the Frankfurt Stock Exchange. Individual executive tasks, assigned to the Management Board, include: admission of persons and companies to exchange trading decisions on the inclusion, suspension and discontinuance of an official listing of securities decisions on the price-fixing of securities definition of the organization and business procedures of the Frankfurt Stock Exchange maintaining order on the trading floor premises. The members of the Management Board of the Frankfurt Stock Exchange are full-time employees and in line with the organizational model of a stock corporation are controlled by the Exchange Council. They ensure that exchange-relevant laws, ordinances, standard terms and conditions and other regulations are implemented and complied with accordingly. In this context the Management Board may assign responsibility for the carrying out of these tasks to other persons.

As the executive body of the Frankfurt Stock Exchange, an institution under public law with partial legal capacity, the Management Board is thus a public administration authority. It may issue administrative acts addressed to third parties and is thus a public authority under administrative law. Taking in the exchange atmosphere:Deutsche Brses Visitors Center offers you an opportunity to visit the stock exchange. Deutsche Brse Group - From Trading Floor to Electronic Marketplace:

Deutsche Brse has also proved its innovation skills as a stock market organizer. In March 1997, it established Neuer Markt, thereby giving smaller growth companies completely new opportunities for raising equity. Transparency requirements were particularly stringent for this new market segment.

In response to the Fourth Capital Market Promotion Act, Deutsche Brse reformed the German stock market. Since 1 January 2003, issuers at FWB Frankfurter Wertpapierbrse (the Frankfurt Stock Exchange) have been able to choose between a listing in either Prime Standard or General Standard. Whereas Prime Standard integrates the stringent transparency requirements of Neuer Markt, the statutory requirements apply in General Standard. Neuer Markt was closed. In March 2003, TecDAX was launched as the new blue-chip index for technology shares. With the Introduction of Entry Standard within the Open Market in October 2005, a new segment for small and medium-sized companies was created. Their shares can be included in exchange trading while meeting less stringent formal requirements. Since October 2008, the sub segments First Quotation Board and Second Quotation Board structure the Open Market.

New products and initiatives for private investorsIn April 2000, the market segment for ETFs, XTF was introduced, making it possible to continuously trade index funds at a stock exchange in Germany for the first time. Since November 2000, actively managed funds have also been listed in the market segment Active ETFs. New upper limits on brokerage fees for floor trading were implemented in April 2005 for warrants, knock-outs, certificates and reverse convertibles orders. Since July 2005, private investors have been guaranteed no-spread trading in DAX, MDAX, TecDAX and SDAX titles at the Frankfurt Stock Exchange. Since April 2006, Deutsche Brse covers international markets in the new index family DAXglobal. With the introduction of ETC Exchange Traded Commodities in November 2006, investors gained access to a broad range of euro-denominated commodities for the first time. In November 2007, Deutsche Brse created an independent segment for companies from the real estate sector. REITs Real Estate Investment Trusts are traded on the stock exchange and add to the spectrum of real estate investments available to investors. Since April 2008, all securities on Scoach, the exchange for certificates and warrants, are tradable on Xetra. Scoach is a joint venture between the Swiss SIX Group (formerly SWX Group) and Deutsche Brse AG. It offers trading in more than 300,000 structured products.

International focusThe listing platform of Deutsche Brse is growing increasingly international. In 2007, a considerable number of foreign companies made their stock exchange debut in Frankfurt. For the first time, several IPOs were listed by companies from China, Russia and the Ukraine. Deutsche Brse offers the lowest capital costs among the worlds leading stock exchanges in all three listing segments, Prime, General and Entry Standard.

Deutsche Brse Group has offices in key financial centers around the globe: in Europe, the Group has offices in London, Paris, Moscow and Zurich; in the US, in Chicago and New York, and in Asia in Dubai, Hong Kong, Singapore and Tokyo. The company aims to expand its service for a growing number of local customers and maintains contact with national authorities and capital market institutions. In cooperation with its partners around the world, the group promotes the internationalization of the financial markets, thereby opening them to European and international investors and companies alike.

Introduction of the market indicator DAXDAX was introduced in 1988. Today, it is one of the worlds most well-known blue-chip indices. Deutsche Brse AG was founded in 1993. It has since been the operating body of FWB Frankfurter Wertpapierbrse, entity under public law, or, as it is better known outside of Germany, the Frankfurt Stock Exchange.

About London Stock Exchange

The London Stock Exchange is at the heart of the global financial market and is home to some of the largest, most successful and dynamic companies in the world.The London Stock Exchange is a stock exchange located in London, United Kingdom. Founded in 1801, it is one of the largest stock exchanges in the world, with many overseas listings as well as British companies. The exchange is part of the London Stock Exchange Group and so sometimes referred to by the ticker symbol for the group, LSE.The London Stock Exchange is one of the worlds oldest stock exchanges and can trace its history back more than 300 years. Starting life in the coffee houses of 17th century London, the Exchange quickly grew to become the Citys most important financial institution. Over the centuries following, the Exchange has consistently led the way in developing a strong, well-regulated stock market and today lies at the heart of the global financial community. Here are some of the milestones in the story of the London Stock Exchange.1991The governing Council of the Exchange is replaced with a Board of Directors drawn from the Exchange's executive, customer and user base. The trading name becomes The London Stock Exchange.1995We launch AIM our international market for growing companies.1997SETS (Stock Exchange Electronic Trading Service) is launched to bring greater speed and efficiency to the market. The CREST settlement service is launched.2000We transfer our role as UK Listing Authority with HM Treasury to the Financial Services Authority (FSA). Shareholders vote to become a public limited company: London Stock Exchange plc.2001We list on our own Main Market in July. We begin our 200th anniversary celebrations.2003We create EDX London, a new international equity derivatives business, in partnership with OM Group. We acquire Proquote Limited, a new generation supplier of real-time market data and trading systems.2004We move to brand new heaadquarters in Paternoster Square, close to St Paul's Cathedral.2007The London Stock Exchange merges with Borsa Italiana, creating London Stock Exchange GroupStructure of London stock Exchange :The London Stock Exchange has four core areas:Capital marketsWe have a choice of markets that put UK and international companies in touch with one of the worlds deepest pools of investment capital.TradingOur tradingservices are designed to maximise liquidity in the stocks traded on them. From our premium fully electronic order-driven trading platforms for liquid UK and international securities, through to our quote driven market maker platforms for less liquid securities.Informations servicesEvery second of the trading day we generate information ranging from data on individual trades and share price movements to company announcements. DerivativesEDX London was created to bring the cash equity and derivatives markets closer together, broadening the scope of equity derivatives trading while cutting down risk and cost. We are committed to developing our market in covered warrants and work closely with issuers to meet the needs of the market and to enhance the services we offer.