Deutscher Aktien Index (DAX30)

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    DAX indexThe DAX, or Deutscher Aktien Index, is an index representing the top 30 of the largest and most liquid German companies that are listed on the Frankfurt Stock Exchange.

    The DAX was created in 1988 with a base index value of 1000 and is now the leading index for the German stock exchange market, which is used all over the world.

    The calculation of the price (i.e. the value of the index) begins every trading day at 09.00 Central European Time and is based on the market capitalisation of the top 30 largest companies in Germany.

    As Germany is the largest economy in the European Union, the DAX is also used as a leading indicator of economic health for the EU. It is important for those trading the euro to watch for developments on the DAX because the euro currency and the index are correlated. If the index value of the DAX increases, it is likely that the euro will rise as well.

    The actual price feed for the DAX 30 comes from an electronic trading system called Xetra, a powerful trading system developed for the Frankfurt Stock Exchange which now caters to a number of exchanges around the world.

    Criteria for listing/exit

    For a company to be listed on the DAX, it must meet certain criteria:

    • It has to be listed in the Prime Standard, a stock segment of the Frankfurt Stock Exchange with maximum transparency.
    • It has to have been continuously traded on Xetra and have a widely held stock of at least 10%.
    • It must have its head office, or the biggest part of its sales volume, in Germany.

    The companies that fulfil these requirements are further sorted according to two characteristics:

    • The order book turnover on the Xetra trading platform and on the floor trading in Frankfurt.
    • The market capitalisation based on free float or widely held stock.

    These two characteristics are the main criteria for the election of DAX-listed companies.

    Adjustments to the DAX listings (45/45)

    Adjustments of the DAX are based on the following four rules:

    Fast-Exit (45/45)

    A company will be taken out of the DAX listing when it no longer belongs to the largest 45 companies, measured by the two attributes of order book turnover and market capitalisation, and also when a company not yet in the index reaches rank 35 in market capitalisation and at least rank 45 in book turnover.

    Fast-Entry (25/25)

    A new company will be listed in the DAX when it belongs to the 25 biggest companies according to the two criteria. For a new company to be listed, an existing company has to be removed. The company that is removed is the one with a rank below 35 in at least one of the above two attributes and also has the worst market capitalization of the companies listed.

    Regular-Exit (40/40)

    A company will also be removed from the DAX when it no longer belongs to the top 40 companies, according to the two characteristics.

    Regular-Entry (30/30)

    A company is added to the DAX when it belongs to the top 30 companies according to the two above attributes and also when there is a company in the DAX that no longer belongs to the top 35 companies, again according to the two attributes.