The Deutsche Borse or German Exchange has a its subsidiaries the Frankfurt Stock Exchange, Xetra, Clearstream and Eurex, which is a joint venture with the Swiss Exchange (SWX) and is managed with the efficiency which has become a hallmark of the German people. Financial institutions, individuals, and listed companies are able to trade and to transact business in all the modes which international commerce demands. The Deutsche Borse has offices in the Far East, Dubai, and the United States, in addition to many major centers of the European Union, and this gives it superior service availability.
Although the Duetsche Borse maintains a high degree of productivity in the returns it produces on investments, potential for growth in a mature economy remains a concern. The technological edge built soon after the Second World War has eroded considerably today, and Germany does not enjoy a leadership position in any of the major new economic sectors which have emerged of late.
The Deutsche Borse is conservative and has a high cost structure relative to Exchanges in other countries. It does not have unique strengths to offset these drawbacks. Therefore, the future prospects for this Exchange are in question, unless it is able to innovate and come with significant new values for stock market operators. The aggression of stock market leaders in the United States is a distinct threat for the Deutsche Borse, aggravated by the inroads NASDAQ is making in global markets.
The future of the Deutsche Borse within the European Union context, and the implications of U.S. acquisitions are matters of rather intense speculation in stock market circles. The Deutsche Borse is careful to distance itself from the controversy, even as it tries to forge stronger bonds with other Exchanges in the European Union. However, it does make matters a bit unstable for independent stock market observers. Various takeover and merger efforts have not been successful and it remains to be seen what the eventual fate of the Deutsche Borse will be in the fast-moving world of finance.
