History Of The Frankfurt Stock Exchange

In financial circles in particular, everyone has heard of the Frankfurt Stock Exchange, but few know the story of its origins. A long history of ups and downs has shaped the Frankfurt Stock Exchange as we know it today.

Beginnings in the 12th century

The first records can be traced back to 1150, in connection with the autumn or spring fairs, at which the city of Frankfurt had an important trade in money and goods for the time. In this way, the production of goods developed from an individual and customer-oriented production to a more open and supra-regional production. With these newly acquired markets, Frankfurt was able to develop economically and to accumulate wealth. But the fairs did not only help the city economically, they also gave it a certain prestige. At the beginning of the 16th century, Luther described Frankfurt as the “silver and gold hole” of the German Empire.

16th century and the birth of the Frankfurt Stock Exchange

The immigration of large numbers of Dutch and French merchants in the course of the 16th century also established a kind of wholesale trade followed by banking in Frankfurt. The monetary system, however, proved extremely difficult as neither the German Empire nor its neighboring countries had a single currency. These confusing and unspecified exchange rates made trade difficult and provided ample scope for fraud and usury.
This came to an end in 1585 when a group of fair-minded merchants met to set a uniform exchange rate, an event that is now regarded as the birth of the stock exchange. In 1652, the first price list was published, listing twelve types of money.

Over the centuries, the Frankfurt Stock Exchange has seen its fair share of ups and downs, driven by industrialization and the emergence of new technologies, as well as recessions caused by conflicts and wars. Despite this, it remains one of the most important and influential stock exchanges in the world.

This is the first in our series “Insights into the history of the financial world and its institutions”. If you are interested in this topic, please read our next installments.