DEFINITION of Munich Stock Exchange (MUN) .MU

The Munich Stock Exchange is a marketplace for national and international stocks, annuity bonds and funds. The physical stock exchange, which no longer exists, was founded in 1830 and located in Munich, Germany. The current computer trading network trades stock and fund shares as well as annuities using the MAX-ONE trading system.

Breaking It Down

The Munich Stock Exchange, Germany’s third-largest exchange, is now operated entirely by its electronic trading system MAX-ONE and has no physical presence, though it does employ human specialists to optimize the trading system and provide additional security for investors. It handles national and international securities from over 60 countries. The exchange also offers an IPO platform and a high-quality market segment aimed at medium-sized enterprises called M:access.

Trading hours for the Munich Stock Exchange are Monday-Friday from 8 a.m. to 8 p.m. These hours are defined by when the exchanges in Europe and the U.S. are open, and the margins between buying and selling price are narrow. As with all other German exchanges, the Munich Stock Exchange is owned by Bayerische Borse AG. The supervisory authority is the Bavarian Ministry for Economic Affairs, Infrastructure, Traffic and Technology.

The Munich Stock Exchange provides securities trading through stocks, bonds, fund, ETFs and ETCs. It also states that it aims to reduce risk and optimize performance through the following options: limited orders, stop buy or stop loss orders without limits, and stop buy or stop loss orders with limits. It provides services to private investors, small and medium-sized asset managers and international institutional investors.

Innovation

MAX-ONE, the electronic trading system, was developed by the Munich Stock Exchange in 2003. It guarantees that transactions occur immediately and at the best price. M:access was launched in 2005 to supply small and medium-sized enterprises with a source of equity. In 2009, the Munich Stock Exchange launched its Greenmarket segment, which trades emission certificates.