The number of changes in voting interests declined significantly in 2016 (2,378; previous year: 6,080; see Figure 15). Likewise, the number of notifications on financial and other instruments – such as call options with physical or cash settlement and rights of redemption under securities loans – received pursuant to sections 25, 25a of the Securities Trading Act decreased significantly for the first time (621; previous year: 3,606).

BaFin received a total of 2,999 (previous year: 9,686) notifications pursuant to sections 21, 25 and 25a of the Securities Trading Act and monitored their publication.

Figure 15 Voting rights notifications

Voting rights notifications

Source: BaFin

The significant decrease in the number of notifications is attributable to the German Act Implementing the Transparency Directive Amending Directive (Umsetzungsgesetz zur europäischen Transparenzrichtlinie-Änderungsrichtlinie), which entered into force on 26 November 2015. Since then, it has been possible, for example, to submit voting rights notifications by way of group notifications. As a result, in 2016, 1,954 of the total of 2,999 notifications were pure group notifications. In practice, this means that the ultimate parent undertaking can report changes in or levels of equity interests in a single voting rights notification. This notification exempts all subsidiaries from their notification obligations. The law (section 24 of the Securities Trading Act in conjunction with section 17 (2) of the Securities Trading Reporting and Insider List Regulation) does not restrict this way of submitting the notification to groups under stock corporation law, but permits a single notification for all parent-subsidiary relationships (section 22a (1) of the Securities Trading Act). The fact that there are fewer notifications within a group makes them all the more complex, thus increasing the examination effort at BaFin.

Another reason for the significant decrease is that the system of notification criteria had been changed. Each relevant change in interests held now triggers the disclosure of all shares and instruments to which voting rights are attached. This renders additional separate notifications obsolete, which had in certain circumstances been required under the old notification system.

The number of companies admitted to trading on the regulated market declined further, from 657 in the previous year to 614 in 2016. The number of notifications these companies published on changes in their voting share capital also decreased to 265 (previous year: 350). 4 real estate investment trusts (REITs) were subject to the reporting requirement at the end of 2016.