What is the Stuttgart Stock Exchange (STU) .SG
Germany's second-largest securities market (after the Frankfurt Stock Exchange), the Stuttgart Stock Exchange (in German, Böerse Stuttgart) handles around 40% of all securities trades in the country. Established in 1860, the Exchange trades in equities, bonds, investment funds and participation certificates.
BREAKING DOWN Stuttgart Stock Exchange (STU) .SG
The Exchange closed from 1914-1919 due to World War I, briefly during the Great Depression, and World War II. In 2004, it became the first German stock exchange to limit commissions. By 2008, all asset classes were traded electronically.
The Exchange Today
The STU calls itself the leading exchange for retail investors in Germany. "At Boerse Stuttgart, retail investors trade equities, securitized derivatives, bonds, investment fund units and profit participation certificates – all at the highest quality of execution and the best prices. Boerse Stuttgart is the German market leader for exchange trading in corporate bonds, and the European market leader for exchange trading in securitized derivatives," the exchange states on its website.
The exchange had a trading volume of 81 billion Euros across all asset classes in 2017, and was ranked tenth among European exchanges in 2017. A total of 75 trading participants from several European countries are linked to Boerse Stuttgart. The STU states that it offers:
High liquidity and execution certainty. The exchange "combines an efficient electronic trading system and the human skills of trading experts. This means that orders are not only executed quickly and efficiently, but also handled individually. The specialist traders, or quality liquidity providers, check orders and provide additional liquidity when needed."
High pricing quality. "The best price principle applies: all orders are executed at the best price currently available on an approved reference market, or better."
Active limit monitoring and intelligent order types. "Investors placing their orders in Stuttgart can rely on effective and active limit monitoring. The electronic trading system indicates when an order is ready for execution. Then an expert trader takes over the handling of the order."
Transparent fee model. "Fixed and variable components of the transaction fee for all securities classes are itemized transparently by Boerse Stuttgart."
Trading subject to supervision under public law. "Transparency and security are of the utmost importance at Boerse Stuttgart: this is where all the control and regulatory mechanisms of a public exchange come into play. As an independent body of the exchange, the Trading Surveillance Office ensures the highest level of investor protection. There are also special regulations for individual asset classes, which take into account the special features of the relevant securities."