The Prime Standard is a segment of the regulated market with additional post-admission obligations, in addition to the General Standard the privately organized, legally regulated market segment of the Frankfurt Stock Exchange with the highest standards of transparency and at the same time a prerequisite for inclusion in the DAX, MDAX, Nasdaq and SDAX indices.
As part of the general restructuring of the German stock exchange segments of the Prime Standard on 1 January 2003 has been set. The aim was to create a market segment that attracts international investors among others, preferred by mandatory disclosure in English and on the legal requirements, standards of transparency.
The first IPO in the Prime Standard was carried out with the Wincor Nixdorf AG on May 19, 2004.
From all equities Prime All Share (ISIN DE0007203325, WKN 720 332 ) established a performance index under the name of which is to represent the development of all member companies on the stock exchange. This rose from a - theoretically calculated back score of about 1000 points to May 19 2004 - up to 3083 points on July 16, 2007.
The first quarter of 2008 was the first quarter in which no companies in Prime Standard ventured to the stock market in the wake of the global financial crisis from 2007 since May 2004. In the aftermath of the performance index fell to 1325 points on 6 March 2009. He has since recovered.
In the Prime Standard stock companies must meet on the level of the regulated market also international transparency requirements. Just as in the General Standard the following transparency criteria must be met:
- For the first and third quarter interim financial reporting in German and English
- Application of international accounting standards (IFRS or U.S. GAAP)
- Publication of a financial calendar
- Ad- hoc Announcements
Furthermore, however, is also required:
- Detailed interim reports for the first and third quarters
- Ad -hoc reports in the English language
- At least one analyst conference per year
- Corporate Calendar and financial reports shall be prepared in German and English and to publish
- Corporate Calendar and financial reports must be submitted in electronic form to the management of the Frankfurt Stock Exchange
It currently has 353 values to the Prime All Share (as of July 2012), with some companies, for example, are represented several times by ordinary shares and preference shares.
The choices in financial reporting are restricted so that the disclosure is slightly larger. In addition, the sanctions ( financial or exclusion from the Prime Standard ) for breaches of the regulations are larger and more flexible.
According to the fee structure of the Frankfurt Stock Exchange created for the admission of shares following costs:
- 3,000 euros admission fee
- 2,500 Euro introduction fee
- 10,000 € annual listing fee ( 2,500 euros more than the General Standard)