Frankfurt Scale segment grows as companies seek lower regulatory costs

The Scale All Shares Index on the Frankfurt Stock Exchange has grown by 12 percent since the beginning of the year, outperforming the DAX. This upward trend is attributed to a new law designed to promote private investment and the financial center, which simplifies the process for companies to transition into the Scale segment.

Gateway Real Estate AG has announced its intention to move from the Prime Standard to the Scale segment of the open market. The company cited a desire to reduce administrative requirements and strict compliance costs that no longer align with the benefits of being in the regulated market. Following this announcement, the company's shares saw a 10 percent increase in pre-market trading.