Why does stocks traded on Frankfurt Stock Exchange have an additional exchange rate at Xetra?
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I noticed that public companies that are traded on Frankfurt Stock Exchange, also have a different share price at a system named Xetra. What is the difference between these share prices? Which one counts when calculating the market capital of the company?
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Answer:
It's just tradition. Frankfurt was first, then came Xetra and got bigger over time. They have slightly different trading hours, but that's all I can bring up from practical point of view. I guess price discrepancies are arbitraged in a fraction of a second, so you can use both prices. Xetra is more liquid, so if you see big difference in "last" price, usually Xetra wins. Just check last traded time and use the newer. Or just use Xetra data, you can't do big mistake doing this.
Peter Forster at Quora Visit the source
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