Abstract

Structural Change in Stock Markets: Competition-Theory-Based Considerations and Trends Abroad as Guideposts for Germany as a Financial Centre

The ZEUS report sets out the strategie programme the Deutsche Börse AG (DBAG) seeks to implement in pursuit of its aim to become the leading stockexchange organisation in the European time-zone. This study focuses on analysing and assessing the effects of DBAG’s plans on Germany’s position as a financial centre in the international market of stock exchanges. The point of reference is not the present situation, but the foreseeable stock-exchange development. There are two methods for identifying this development: fundamental evolutionary and competition-theory-based considerations and an extrapolation of trends observable abroad. For this reason, the perspectives of the structural change that is currently under way in Britain and the United States have been included in this study. Those orienting their actions by the internationally foreseeable developments will rather not expect that the mere realisation of the DBAG’s plans will effect a giant leap in Germany’s advancement as a financial centre in international competition. Rather more decisive is what competing stock-exchange members will contribute to structural change. Should the Frankfurt EHS represent the beginning of competition among German institutions and groups of institutions in the field of complementing systems, the result would be domestic rivalries and a quick improvement in Germany’s international competitiveness.