The Frankfurt Quotation Board 101 Deutsche Börse is the worlds largest stock exchange organization by revenue, profitability and market capitalization. In April 2012,Cheap Christian Louboutin Shoes, Deutsche Börse Group announced that it would close the First Quotation Board of the Frankfurt Stock Exchangethe equivalent of the lower ranks of U.S. Over-the-counter marketsbecause of massive and frequent suspected cases of market manipulation.The First Quotation Board segment of the Frankfurt Stock Exchange open market has been closed to new admissions since December 2011; it shut down entirely on December 15, 2012. Companies once listed on the First Quotation Board were required either to upgrade to the Entry Standard, General Standard or Primary Standard segment of the Frankfurt Stock Exchange or be delisted. The approximately 450 affected companies had to determine whether they could comply with the stricter rules or preferred to leave the exchange. The closure of the First Quotation Board makes the Second Quotation Board, now known simply as the Quotation Board, an appealing option for issuers seeking to go public on the Frankfurt Stock Exchange.Frankfurt Quotation Board QualificationsCompanies qualify to be included in the Quotation Board when their shares are listed or included on another international or domestic exchange-like market recognized by Deutsche Börse, or when they apply for admission to the Open Market of the Frankfurt exchange. By piggybacking an existing listing from accepted regulated markets, issuers are easily able to enter the Quotation Board.The Quotation Board offers two venues for trading: (1) the XETRA 1 for global electronic trading, accessible by individuals and institutions around the world; and (2) the Frankfurt Stock Exchange Floor/XETRA 2 for German investors. Issuers on the Quotation Board have the advantage of access to a globally recognized venue with a quick, easy and cost-efficient listing process, free of burdensome reporting requirements.Companies that were listed on the First Quotation Board of the Frankfurt Stock Exchange as of December 31, 2012 and want to maintain their listing can uplist to the Entry Standard if they are able to meet the new minimum requirements; or they can list on another regulated exchange-like market recognized by Deutsche Börse and dual list on the Frankfurts Quotation Board.Issuers already listed on the Entry Standard segment of the Frankfurt Stock Exchange prior to July 1,Christian Louboutin Outlet Sale, 2012 are grandfathered in and are not required to meet the new requirements.Requirements for Listing on the Quotation BoardThe new Frankfurt Stock Exchange Quotation Board provides initial and secondary listings of bonds and secondary listings of shares. This means that for the initial listing of shares, the Entry Standard is the easiest tier for listing qualification.An initial listing without a public offering is no longer possible on as of December 31, 2012.In addition to the obligation to publish a prospectus further requirements for the inclusion of shares for trading on the Entry Standard of the Frankfurt Stock Exchange have been established. The company applying to list must have issued capital of at least 750,000 and must have been in existence for at least two years. The nominal value per share must be at least 1.00 and the minimum free float after listing must be 10% of the outstanding shares. The shares in the free float must be held by at least 30 shareholders or owners.An application for admission to the Frankfurt Stock Exchange must be filed by the issuer together with a qualified trading participant such as a bank or other approved financial services provider. In the course of making the application the issuer must further demonstrate that it is ready for the capital market and that it has been sufficiently informed about its obligations as a capital market participant, including an understanding of appropriate risk management and internal control systems.In addition to annual mandatory audited financial statements,Christian Louboutin Wedding Shoes Outlet, all entities listed on the Frankfurt Stock Exchange must publish a half-yearly financial statement with an abbreviated balance sheet, profit and loss statement, notes and management report. Issuers from an EU country must prepare the financial statements and notes according to internally accepted accounting rules or according to the local laws of the jurisdiction in which the issuer has its registered office. Issuers from outside the EU are only allowed under certain circumstances to prepare the financial statements under the respective local law.All ongoing reporting obligations of the Frankfurt Stock Exchange must be fulfilled directly by the issuer and submitted in electronic format to Deutsche Börse. These ongoing obligations apply as well to issuers whose shares are included in the Frankfurt Stock Exchange Entry Standard.For the purpose of upgrading to the Entry Standard the requirements include the publication of a prospectus approved by the German Financial Supervisory Authority (BaFin). Issuers unable to meet the requirements of the Entry Standard or the much stricter Prime Standard or General Standard were delisted on December 15, 2012.Alternative Listing on Accepted ExchangesFor issuers whose securities were listed or included on an alternative international or domestic exchange-like market recognized by Deutsche Börse, dual listing is a more timely and cost-effective option than complying with the new Entry Standard segment requirements. In order to determine which alternative exchange is the most beneficial to an issuer seeking a Frankfurt Stock Exchange listing, a variety of factors should be considered including domicile, operating history, funding needs and float structure.This memorandum is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information concerning the rules and regulations affecting the use of Rule 144, Form 8K, FINRA Rule 6490, Rule 506 private placement offerings, Regulation A, Rule 504 offerings, Rule 144, SEC reporting requirements, SEC registration on Form S-1 and Form 10, Pink Sheet listing, OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, go public direct transactions and direct public offerings.