The German stock exchange sees no reason to let the working Committee for equity indices of non-scheduled days. Wirecard also meets after the bankruptcy petition all of the conditions to the German stock index, the Dax, continued to belong to. Background of the scheme is that there is no prejudgement of the company is to be held. Finally, a company out of insolvency can emerge strengthened, or at least continue to exist.
Daniel Mohr
editor of the Frankfurter Allgemeine week.
F. A. Z.
The immediate withdrawal from the Dax would only be made when “the insolvency is dismissed for lack of mass”, or a company is “in liquidation”, – stated in point 5.1.1. of the guide to the equity indices of Deutsche Börse.
a CEO is arrested a few days after his retirement, playing for the Index of belonging, no role. The exchange shall examine purely formal criteria. In a balance sheet you don’t look. It is not a firm of auditors. Among the formal criteria, the regular submission of annual reports. However, Wirecard is a violation since the multiple-postponed presentation of the balance sheet for 2019. However, the stock exchange rules are here mild. Only “if an Issuer repeatedly, over several years, its annual accounts are not submitted, may be an exclusion from the Prime Standard.” The membership of the Prime Standard, the most strictly regulated Segment of the stock exchange, is the condition for inclusion in the Dax.
No comparable cases
The stock exchange says now self, index, rules could also be “further developed”, when it makes sense. But it would first need the consultation of market participants, a process that is usually several months takes.
The Dax-ETF-owners are, therefore, likely to remain so for a couple of weeks to Wirecard involved. The quarterly Review of the Dax’s composition took place just at the beginning of June, Lufthansa has been replaced by Deutsche Wohnen. The next appointment of the 3 is. September. Then Wirecard is threatening because of the rapid course of the decay of sampling from all of the indices. The current stock market value of around 300 million Euro could not be more self-sufficient for the S-Dax.
Comparable cases, it was not in the Dax. The metal company was in 1993/1994, in a serious crisis, could avoid bankruptcy, however, and had to make in 1996, the Telekom in the Dax space. The Deutsche Babcock in 2002, and Karstadt-Quelle (later Arcandor) in 2009 were in bankruptcy, were to the Dax but years previously excreted.
In the financial crisis, banks have had greater difficulty. The Dax-value, Hypo Real Estate was taken in December 2008 from the Index. Commerzbank followed almost ten years later, and had to make in September of 2018, the new star on the German financial sky space: Wirecard. The stock market value had soared almost two years ago, on 24Milliarden euros in height, today it is 98 per cent less. Small consolation for the Dax-ETF-owner: The Wirecard share of the Index has been marginalized to 0.03 percent. You can be from now on, virtually no matter what happens.
