Liquid und Continuous
The Frankfurt Stock Exchange has reorganized bond trading and now offers trading in three segments: the standard bond segment, the quality segment called select bonds and the premium segment called prime bonds.
Bonds – the standard segment
Investors can select from about 26,000 bonds on the Frankfurt Stock Exchange to find the investment that fits them best. That is the largest selection of bonds among all European exchanges and it includes all important foreign bonds and a large selection of jumbo bonds.
Select Bonds – the quality segment
Investors who buy or sell bonds on the select bonds segment receive improved conditions compared with the standard segment, namely as relates to speed of execution, spread and volumes. The faster the execution, the sooner the investor gets information on whether and at what price his order was fulfilled. The tighter the spread, the less range between the buy and sell offers. And with higher trading volumes, the number of orders that can be transacted at the same spread can be larger. That provides investors with cost effective trading and price transparency.
Select Bonds – the quality segment
Select Bonds
Listing updated daily for all bonds in the quality segment at Frankfurt Stock Exchange
Bonds in the Select Bonds Segment:
- Execution within a maximum 90 seconds
- Spread of up to a maximum 30 cents
- Volumes of up to 100,000 Euros.
The market makers decide which bonds they will allow in the Select Bonds segment or which ones to remove from this quality segment. The market remains in flux – so it’s worth taking a regular look at what’s on offer.
Prime Bonds – the premium segment
Bonds on the premium segment are awarded special conditions. Market makers guarantee bonds on the Prime Bond segment:
- Execution within a maximum 90 seconds
- Spread of up to a maximum 5 cents
- Volumes of up to 250,000 Euros.
- Market makers are also required to register their bonds in the premium segment, thus confirming that they will fulfill the top quality criteria.
Trading bonds on the stock exchange
Bonds typically are not traded in individual shares like stocks but rather as a percent of the nominal value. The investor doesn’t buy a share, but a specific nominal value and pays a corresponding percent of the price. Be sure to find out ahead of time what exactly the conditions are of the bond you want to buy. Once you’ve decided, enter the corresponding ISIN, WKN or the name of the bond to your bank or in the order field of your online broker. In addition, you have to specify a concrete volume that you want to buy. To execute the order at the Frankfurt Stock Exchange, simply enter “Frankfurt” in the order field or let your banker know.
