Standards for Private Investors

The quality segment Scoach Premium in Frankfurt ensures the highest standards of quality when trading in structured products such as certificates, warrants and reverse convertibles. Each order in an investment or leveraged product that you enter at the Frankfurt Stock Exchange automatically ends up at Scoach - as well as in the Scoach Premium quality segment provided the product is listed there.

• In principle, the issuer must provide buy and sell prices for its own products from 9 a.m. through 8 p.m. This ensures that the products can be traded at all times, even if there is no turnover in a given product for an extended period of time “Bid prices” and “asked prices” are the technical terms for buy and sell prices. An investor can buy a product at the current asked price and sell it back to the issuer at the bid price. The difference between the two prices is called the “spread”. The narrower the spread and the higher the provided volume, the better for the investor.
• The issuer must transmit the bid and asked prices to the technical infrastructure of the exchange via two dedicated lines.
• The prices must apply for fixed minimum volumes. In the case of investment products, this minimum order size is EUR 10,000. In the case of leveraged products, it is EUR 3,000. Usually, significantly larger orders are executed at the current bid and asked prices

An overview of the issuers who meet the high demands of Scoach Premium is available on the webpage http://www.scoach.de/en

From April 2008, trading has been migrated to the ultra-high-performance Xetra platform, one of the world’s most powerful and fastest trading systems for securities transactions, which is used by more than 4,000 Xetra® traders from 18 countries. Xetra sets its priorities on liquidity, transparency and speed to provide the lowest prices. Even before the migration to Xetra®, most orders pertaining to investment and leveraged products were executed in ten seconds or less in Frankfurt. In addition, Scoach in Frankfurt is the only exchange that guarantees execution within a maximum of thirty seconds for trades in products within the Scoach Premium segment under following conditions:

• If orders are placed by private investors in the quality segment “Scoach Premium” that have, under normal market conditions, been executable within 30 seconds; it must also be within an order volume of 10,000 or a maximum value of 10,000 Euros.
• During each official trading day after the opening price of the respective security has been established. It may take no longer than 15 minutes to establish said price, and orders may be placed until 5 minutes before closing.

Many investors use stop-loss orders in order to automatically limit their losses. Within Scoach Premium, the stop limit specified by the investors is compared to the issuers’ bid price on an ongoing basis.

If the bid price reaches or falls below the stop limit, the stop order can be triggered. The 30 seconds guarantee is applicable to triggering of stop orders as well. Once being triggered, the stop order is executed at the next possible price. This applies analogously to stop buy orders. In this case, the issuer’s ask price is monitored. In other words, investors do not have to worry that a stop order will not be executed if no turnover takes place in a given product for an extended period.

At Scoach, orderly trading is guaranteed by the Trading Surveillance Office (Handelsüberwachungsstelle, HÜSt), which investigates all irregularities and communicates the results of its investigations to the Exchange Supervisory Authority and the management of the respective exchange. If an investor fears that an order was not processed correctly, he or she can contact the Trading Surveillance Office free of charge.

Phone: 0800 / 23 020 23, huest@deutsche-boerse.com.

Our site provides real-time push prices for all Scoach Premium products, tools for product searches and scenario calculations, detailed information on all important product types for beginners and much more. Stop by and have a look around.

• Scoach specialises in the trading of warrants and certificates – more than 330,000 products can be traded.
• Scoach offers through Xetra Technology the fastest order execution: issuers’ execution speed is measured on an ongoing basis.
• Scoach ensures maximum liquidity – even if there is no turnover for an extended period, Scoach Premium products are generally tradable at all times.
• Within Scoach Premium, stop orders are monitored automatically.
• Strict neutrality on the part of the Exchange – the Trading Surveillance Office ensures fair and orderly trading.
• Wide range of information available on our website: the prices of all Scoach Premium products in real time via the push method, user-friendly tools for product searches, scenario calculators, comprehensive information for beginners and much more.