{"id":6471,"date":"2026-06-09T13:15:56","date_gmt":"2026-06-09T12:15:56","guid":{"rendered":"https:\/\/boersenpost.com\/?post_type=kb&#038;p=6471"},"modified":"2026-06-10T13:16:30","modified_gmt":"2026-06-10T12:16:30","slug":"what-is-the-frankfurt-open-market","status":"publish","type":"kb","link":"https:\/\/boersenpost.com\/en\/knowledge\/what-is-the-frankfurt-open-market\/","title":{"rendered":"What Is the Frankfurt Open Market (Freiverkehr)?"},"content":{"rendered":"<style>.bp-entity{max-width:860px;margin:0 auto;line-height:1.7;color:#222}.bp-entity .bp-lead{font-size:1.18em;color:#1a1a1a;margin:0 0 1.3em}.bp-entity h2{font-size:1.4em;margin:2.6em 0 .7em;padding-bottom:.35em;border-bottom:2px solid #d4af37;color:#111;font-weight:700}.bp-entity h2:first-of-type{margin-top:1.2em}.bp-entity table{width:100%;border-collapse:collapse;margin:.4em 0;font-size:.96em}.bp-entity th{text-align:left;padding:.6em .9em;background:#faf8f2;border:1px solid #eee;font-weight:600}.bp-entity td{padding:.6em .9em;border:1px solid #eee}.bp-entity .bp-faq-item{border:1px solid #ececec;border-left:3px solid #d4af37;border-radius:6px;padding:.85em 1.1em;margin:0 0 .8em}.bp-entity h3.bp-faq-q{font-size:1.02em!important;margin:0 0 .35em!important;font-weight:600;line-height:1.45}.bp-entity .bp-faq-a{margin:0;color:#333}.bp-entity .bp-sources{font-size:.9em;color:#666}.bp-entity .bp-review{font-size:.88em;color:#888;font-style:italic;margin-top:2.4em;padding-top:1em;border-top:1px solid #eee}<\/style>\n<div class=\"bp-entity\">\n<p class=\"bp-lead\">The Frankfurt Open Market (Freiverkehr) is a multilateral trading facility (MTF) operated by Deutsche B\u00f6rse AG on the Frankfurt Stock Exchange. It is not an EU-regulated market under MiFID II, which allows for simplified listing requirements. It is a common secondary listing venue for Canadian and other international small-cap companies seeking access to European investors.<\/p>\n<h2>Definition and regulatory status<\/h2>\n<p>The <strong>Open Market (Freiverkehr)<\/strong> is a trading segment of the Frankfurt Stock Exchange (B\u00f6rse Frankfurt) operated by Deutsche B\u00f6rse AG. Under the European Union&#8217;s <strong>Markets in Financial Instruments Directive II (MiFID II)<\/strong>, it is classified as a <strong>Multilateral Trading Facility (MTF)<\/strong> rather than a Regulated Market (Regulierter Markt).<\/p>\n<p>This distinction has practical consequences. EU-regulated markets such as the Prime Standard and General Standard on the Frankfurt Stock Exchange are subject to strict EU-level prospectus requirements, ongoing disclosure obligations, and supervisory oversight by <strong>BaFin<\/strong> (Bundesanstalt f\u00fcr Finanzdienstleistungsaufsicht), Germany&#8217;s federal financial supervisory authority. The Open Market is governed primarily by the exchange&#8217;s own rulebook (<em>B\u00f6rsenordnung<\/em>) and is not subject to the full EU Prospectus Regulation in the same way.<\/p>\n<p>The Open Market is divided into sub-segments, most notably <strong>Scale<\/strong>, which targets small and medium-sized enterprises and carries additional transparency requirements, and the <strong>Basic Board<\/strong>, which applies more minimal standards.<\/p>\n<h2>How the Open Market differs from EU-regulated markets<\/h2>\n<p>The table below summarises the principal differences between the Frankfurt Open Market and EU-regulated market segments:<\/p>\n<table>\n<tr>\n<th>Feature<\/th>\n<th>Open Market (Freiverkehr)<\/th>\n<th>EU regulated market (e.g., General Standard)<\/th>\n<\/tr>\n<tr>\n<td>Classification under MiFID II<\/td>\n<td>Multilateral Trading Facility (MTF)<\/td>\n<td>Regulated Market<\/td>\n<\/tr>\n<tr>\n<td>Primary regulator<\/td>\n<td>Deutsche B\u00f6rse AG (exchange rules)<\/td>\n<td>BaFin and EU legislation<\/td>\n<\/tr>\n<tr>\n<td>EU Prospectus Regulation<\/td>\n<td>Generally not required for listing admission<\/td>\n<td>Full EU-compliant prospectus typically required<\/td>\n<\/tr>\n<tr>\n<td>Ongoing disclosure obligations<\/td>\n<td>Exchange-defined; lighter than regulated market<\/td>\n<td>EU Market Abuse Regulation and Transparency Directive apply directly<\/td>\n<\/tr>\n<tr>\n<td>Typical issuers<\/td>\n<td>International small caps, growth companies<\/td>\n<td>Larger, established European companies<\/td>\n<\/tr>\n<\/table>\n<p>Because the Open Market is not a regulated market under EU law, securities admitted there do not automatically benefit from EU passporting of prospectuses. The level of mandatory issuer oversight differs materially from regulated-market standards.<\/p>\n<h2>Why Canadian small-cap companies use the Frankfurt Open Market<\/h2>\n<p>Canadian small-cap companies \u2014 particularly those listed on the <strong>TSX Venture Exchange (TSXV)<\/strong> or the <strong>Canadian Securities Exchange (CSE)<\/strong> \u2014 frequently pursue a secondary listing on the Frankfurt Open Market for several practical reasons:<\/p>\n<ul>\n<li><strong>Access to European retail and institutional investors:<\/strong> Frankfurt is one of Europe&#8217;s largest equity trading centres, providing visibility to a broad investor base outside North America.<\/li>\n<li><strong>Simplified admission process:<\/strong> Because the Open Market is an MTF governed by exchange rules rather than the full EU regulatory framework, the documentation and cost requirements for a foreign company seeking admission are considerably lower than for a regulated-market listing.<\/li>\n<li><strong>No separate prospectus typically required:<\/strong> A company already listed on a recognised Canadian exchange can often apply for Open Market admission using existing home-market disclosure documents, subject to Deutsche B\u00f6rse&#8217;s own requirements. Applicants should verify current exchange rules directly with B\u00f6rse Frankfurt.<\/li>\n<li><strong>Euro-denominated trading:<\/strong> Shares can trade in euros during European market hours, which may broaden liquidity windows beyond North American trading sessions.<\/li>\n<li><strong>Sector interest:<\/strong> European investors have historically shown appetite for Canadian resource, mining, cannabis, and technology sectors that are well represented on the TSXV and CSE.<\/li>\n<\/ul>\n<p>Canadian issuers remain subject to their home-jurisdiction securities laws and must continue to file continuous disclosure documents on <strong>SEDAR+<\/strong>, the System for Electronic Document Analysis and Retrieval operated by the Canadian Securities Administrators (CSA). The Frankfurt listing does not replace or modify these obligations.<\/p>\n<h2>Investor considerations<\/h2>\n<p>Investors accessing Canadian small-cap shares through the Frankfurt Open Market should be aware of several structural factors:<\/p>\n<ul>\n<li><strong>Reduced mandatory oversight:<\/strong> Open Market issuers are not subject to the same BaFin-enforced ongoing disclosure regime as companies on regulated markets. Investors should consult the issuer&#8217;s home-market filings on SEDAR+ for authoritative financial and material information.<\/li>\n<li><strong>Currency and spread risk:<\/strong> Euro-denominated Frankfurt prices may diverge from the Canadian-dollar price on the home exchange due to currency fluctuations, time-zone differences, and liquidity differences.<\/li>\n<li><strong>Liquidity:<\/strong> Trading volumes on the Frankfurt secondary listing are often lower than on the primary Canadian exchange, and bid-ask spreads may be wider as a result.<\/li>\n<li><strong>Designated sponsors:<\/strong> In the Scale sub-segment, issuers are required to engage a <strong>Designated Sponsor<\/strong> \u2014 a financial intermediary that provides liquidity and analyst coverage \u2014 which can improve price discovery compared with the Basic Board.<\/li>\n<\/ul>\n<h2>FAQ<\/h2>\n<div class=\"bp-faq\">\n<div class=\"bp-faq-item\">\n<h3 class=\"bp-faq-q\">Is the Frankfurt Open Market a regulated stock exchange under EU law?<\/h3>\n<div class=\"bp-faq-a\">No. The Frankfurt Open Market (Freiverkehr) is classified as a Multilateral Trading Facility (MTF) under MiFID II, not as an EU Regulated Market. It is governed by the rules of Deutsche B\u00f6rse AG rather than the full suite of EU securities market legislation that applies to regulated markets.<\/div>\n<\/div>\n<div class=\"bp-faq-item\">\n<h3 class=\"bp-faq-q\">Do Canadian companies need a separate prospectus to list on the Frankfurt Open Market?<\/h3>\n<div class=\"bp-faq-a\">Generally, Canadian companies already listed on a recognised home exchange such as the TSXV or CSE can apply for Open Market admission without preparing a full EU-compliant prospectus, relying instead on existing home-market disclosure. Requirements can change, and applicants should confirm current conditions directly with B\u00f6rse Frankfurt or a qualified German securities lawyer.<\/div>\n<\/div>\n<div class=\"bp-faq-item\">\n<h3 class=\"bp-faq-q\">Where can investors find official disclosure documents for Canadian companies listed in Frankfurt?<\/h3>\n<div class=\"bp-faq-a\">Because the Frankfurt Open Market is a secondary listing, the primary source of authoritative continuous disclosure \u2014 financial statements, material change reports, and management discussion and analysis \u2014 is SEDAR+ (sedarplus.ca), the filing system administered by the Canadian Securities Administrators (CSA). B\u00f6rse Frankfurt&#8217;s own issuer database may also display company information.<\/div>\n<\/div>\n<div class=\"bp-faq-item\">\n<h3 class=\"bp-faq-q\">What is the difference between the Scale and Basic Board sub-segments of the Open Market?<\/h3>\n<div class=\"bp-faq-a\">Scale is a sub-segment of the Frankfurt Open Market for small and medium-sized enterprises that meet higher transparency and reporting standards, including the requirement to retain a Designated Sponsor. The Basic Board applies more minimal exchange-defined requirements and is typically used by foreign issuers seeking straightforward secondary access to European investors.<\/div>\n<\/div>\n<\/div>\n<h2>Sources<\/h2>\n<p class=\"bp-sources\">B\u00f6rse Frankfurt \u2013 Open Market segment information (boerse-frankfurt.de); Deutsche B\u00f6rse AG \u2013 Exchange Rules and Regulations (deutsche-boerse.com); BaFin \u2013 Bundesanstalt f\u00fcr Finanzdienstleistungsaufsicht, overview of market classifications (bafin.de); European Securities and Markets Authority (ESMA) \u2013 MiFID II framework and MTF definition (esma.europa.eu); Canadian Securities Administrators (CSA) \u2013 SEDAR+ continuous disclosure system (sedarplus.ca); TSX Venture Exchange \u2013 Company Manual and international listing guidance (tsx.com). Accessed 2026-06-09.<\/p>\n<p class=\"bp-review\"><em>By Boersenpost \u00b7 reviewed by Carsten Schmider, financial analyst \u2014 last updated 9 June 2026. Educational content, not investment advice.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Frankfurt Open Market (Freiverkehr) is a multilateral trading facility (MTF) operated by Deutsche B\u00f6rse AG on the Frankfurt Stock Exchange. It is not an EU-regulated<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":5,"featured_media":0,"template":"","meta":{"_acf_changed":false,"rank_math_title":"Frankfurt Open Market (Freiverkehr) Explained","rank_math_description":"Learn what the Frankfurt Open Market (Freiverkehr) is, how it differs from EU-regulated markets, and why Canadian small-cap companies list there.","rank_math_focus_keyword":"","footnotes":""},"sector":[],"exchange":[977],"country":[979],"commodity":[],"kb_topic":[1076],"class_list":["post-6471","kb","type-kb","status-publish","hentry","exchange-frankfurt-open-market","country-germany"],"acf":[],"_links":{"self":[{"href":"https:\/\/boersenpost.com\/?rest_route=\/wp\/v2\/kb\/6471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/boersenpost.com\/?rest_route=\/wp\/v2\/kb"}],"about":[{"href":"https:\/\/boersenpost.com\/?rest_route=\/wp\/v2\/types\/kb"}],"author":[{"embeddable":true,"href":"https:\/\/boersenpost.com\/?rest_route=\/wp\/v2\/users\/5"}],"version-history":[{"count":2,"href":"https:\/\/boersenpost.com\/?rest_route=\/wp\/v2\/kb\/6471\/revisions"}],"predecessor-version":[{"id":6559,"href":"https:\/\/boersenpost.com\/?rest_route=\/wp\/v2\/kb\/6471\/revisions\/6559"}],"wp:attachment":[{"href":"https:\/\/boersenpost.com\/?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6471"}],"wp:term":[{"taxonomy":"sector","embeddable":true,"href":"https:\/\/boersenpost.com\/?rest_route=%2Fwp%2Fv2%2Fsector&post=6471"},{"taxonomy":"exchange","embeddable":true,"href":"https:\/\/boersenpost.com\/?rest_route=%2Fwp%2Fv2%2Fexchange&post=6471"},{"taxonomy":"country","embeddable":true,"href":"https:\/\/boersenpost.com\/?rest_route=%2Fwp%2Fv2%2Fcountry&post=6471"},{"taxonomy":"commodity","embeddable":true,"href":"https:\/\/boersenpost.com\/?rest_route=%2Fwp%2Fv2%2Fcommodity&post=6471"},{"taxonomy":"kb_topic","embeddable":true,"href":"https:\/\/boersenpost.com\/?rest_route=%2Fwp%2Fv2%2Fkb_topic&post=6471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}