Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 4

Each market must have clear rules assuring investor protection by safeguarding participants from the financial risks of failed settlement and ensuring that listed companies are required to follow sound policies on corporate governance, transfer of economic benefits and shareholder rights.

1.	Does the depository or the market have securities lending and borrowing schemes in place, and are these open to all market participants and their settlement agents?	Yes, there is a fully functioning securities lending and borrowing market.
2.	Does the settlement system mark fail trades to market and collect margin from the failing counterparty to protect the innocent counterpart's interest?	Failed trades are marked in the CASCADE system, but no special margins (for failed trades) are required.
3.	Does the market operate a guarantee fund or have an equivalent procedure to protect against the cost of failed transactions; and which sectors of the market does it cover?	No.
4.	Are the stock transfer agents (share registrars) linked electronically to the depository?	Yes (registered shares are settled via CASCADE RS).
5.	Is there a legal maximum time period to complete ownership transfers in the books of the issuer? If so, does market practice adhere to the deadline?	There is no deadline set by law or by issuers currently in place. Normally re-registration is carried out automatically after settlement, triggered by an instruction of the buyer's bank. Note: The change of legal ownership (e.g. due to sale/purchase) automatically transfers all monetary rights associated with the security. Re-registration in the books of the company is necessary to also transfer the membership rights (voting rights).
6.	Are investors entitled to all benefits arising on a security from the point of purchase; and how are any rules enforced?	Transfer of ownership for stock exchange trades takes place at T+2. For non stock exchange trades other settlement cycles can be applied (Real time settlement, Same Day Settlement; any period ranging from T+0 to T+40). For bearer shares membership rights and ownership rights are both transferred with the settlement, for registered shares please see question 4.5.
7.	Is proxy voting permissible in the market and can such proxies be lodged by post or other remote delivery method?	Yes.
8.	Are there binding rules in the market stating the minimum and maximum lapsed time between the announcement and completion of key events, including registration, the calling of shareholder meetings, the payment of dividends or interest, rights issues, tender offers and other voluntary corporate actions?	Yes, as laid down particularly in the German Stock Corporation Law, e.g. calling of shareholder meetings has to take place during the first eight months of the business year (sec. 175) shareholders have to be invited at least one month prior to regular shareholder meetings (sec. 123) a time limit of not less than two weeks may be set for the exercise of subscription (AE: stock) rights (sec. 186) dividend claims are generally due with the resolution of the shareholder meeting on the disposition of net earnings (sec. 174, 58). Generally, dividends are distributed one working day after the shareholder meeting As mentioned under question 5, there is no legal time-limit for re-registration. The due dates of interest payments are set in the specific terms of issue of each bond.
9.	Are all voluntary corporate actions advised through a central mechanism assuring consistent information to all investors?	Yes ("Wertpapiermitteilungen - WM").
10.	Is information on corporate actions available electronically, and is the minimum lapsed time for responding to such actions sufficient to enable all domestic and foreign investors to respond in a timely and considered fashion?	Yes.