BAADER: Von der Ein-Mann-Gesellschaft zur ... - Baader Bank AG

BAADER: From one-man company to the leading securities trading bank in
Germany!
Here you can read about the story and most important events of the last decades. In this time
Baader Wertpapierhandelsbank AG became one of the largest securities trading houses in
Germany:
July 1983 Mr. Uto Baader begins stock exchange trading at the Munich
Stock Exchange with shares of American Telephone &
Telegraph, Ranger Oil and Westinghouse Electric.
October 1987 Authorised to trade at the Stuttgart Stock Exchange.
1996 78% stake in the listed Ballmaier & Schultz Wertpapier AG,
Frankfurt.
December 1996 Renaming to Baader Wertpapier GmbH and extension of
business operations to include issues.
December 1997 To the year-end, 41 staff is employed in the Group.
November 1998 Baader Wertpapierhandelsbank AG results from the merger of
Baader Wertpapier GmbH and Ballmaier & Schultz
Wertpapier AG with liable equity of more than DM 150
million.
December 1998 To the year-end, 74 staff is employed in the Group.
March 1999 Participation of more than 25% in KST Wertpapierhandels
AG.
June 1999 Assumption of participation business.
April 1999 Baader participates in the SMAX (Small Cap Exchange), the
new quality segment of Deutsche Börse AG, as one of the
largest shares.
July 1999 Baader increases participation in KST Wertpapierhandels AG
to 47.5%.
December 1999 The number of staff employed in the Group increases to 118.
To the year-end, Baader manages 2,850 order books for
German and international shares and approximately 1,900
warrants. In addition, it is planned to expand the order book
portfolio rapidly.
January 2000 Baader acquires 100% of Eckes Effektenhandel AG.
Entry in the institutional brokerage operations.
March 2000 Baader moves up into the MDAX.
July 2000 KST stake increase to over 50%.
October 2000 Baader upgrades holding in Baader Securities a.s., Prague to
100%.
December 2000 To the year-end, 215 staff is employed in the Group.
March 2001 Baader acquires 100% in Meyenkoth & Co.
Wertpapierhandelsgesellschaft mbH, Berlin.
Entry in bond trading.

July 2001 Baader holds 87% of the equity in KST Wertpapierhandel
AG.
October 2001 Baader withdraws from the Participation division. Existing
portfolio is managed with a value appreciation approach and
is sold in the medium term.
December 2001 To the year-end, 212 staff is employed in the Group. Baader
manages 7,682 order books to the year-end.
December 2001 For the first time, Baader prepares its annual financial
statements (2001) according to IAS (International Accounting
Standards).
March 2002 Baader traded on the SDAX.
December 2002 Baader sells Prague subsidiary to a Czech investor.
December 2002 Baader takes 50% stake in Heins & Seitz Capital
Management GmbH, Munich. With this step, Baader
continues the concentration on the core competences of
securities trading, brokerage and issuer support.
December 2002 To the year-end, 186 staff is employed in the Group. To the
year-end, Baader manages 10,964 order books.
January 2003 Acquisition of the subsidiary Gebhard & Schuster
Wertpapierhandelshaus AG.
January 2003 Baader acquires Börsenservice GmbH, Frankfurt, a subsidiary o
Spütz AG. The company manages over 34,000 order books for
structured products (warrants, certificates) in Frankfurt and
Berlin. Extension of market making to derivative
Products.
September 2003 Baader acquires Hannig Wertpapierhandels GmbH. The
company manages 1,200 order books for fixed-income securitie
on the Frankfurter Stock Exchange.
December 2003 To the year-end, 165 staff is employed in the Group. To the
year-end, Baader manages a total of 26,841 order books.
January 2004 Baader acquires die Heribert Schollmeyer Wertpapierhandels
GmbH.
January 2004 Baader acquires die SMS – Sobota, Maier & Stopp
Wertpapierhandels GmbH, Munich. In bond trading the
company manages all order books for Amtlicher Markt and
Geregelter Markt at the Munich Stock Exchange. The
company is also responsible for variable jumbo trading at the
Munich Stock Exchange.

July 2004 Baader acquires Jörg D. Reuter Wertpapierhandels GmbH,
Frankfurt/Main. The company manages approximately 6,000
order books of Deutsche Bank warrants and certificates listed o
the Frankfurter Stock Exchange in the Smart Trading quality
segment for structured securities.
With this acquisition, Baader becomes the market leader for
derivative product market making on the Frankfurt Stock
Exchange.
September 2004 Baader acquires die CK tr@ding Bank GmbH, Frankfurt am
Main.
November 2004 CK tr@ding Bank GmbH renamed Baader Service Bank
GmbH and is a 100% subsidiary of Baader
Wertpapierhandelsbank AG.
December 2004 To the year-end, 218 staff is employed in the Group. Baader
manages a total of 42,686 order books.
January 2005 Participation in Heins & Seitz Capital Management GmbH,
Munich increased from 50% to 70%.
April 2005 In the performance rating of the Frankfurt Stock Exchange of
February and March 2005, Baader Wertpapierhandelsbank
AG is ranked as the best market maker. Performance is one of
the conditions for the new allocation of order books in the
Amtlicher and Geregelter Markt of the Frankfurt Stock
Exchange.
August 2005 Baader Wertpapierhandelsbank AG takes a 19.96% stake in
the Bad Homburg based Conservative Concept Portfolio
Management Group. At Conservative Concept the core
business areas is the conception and implementation of
alternative investment strategies. The company specialises on
deploying futures and options in the form of single hedge
funds, managed accounts and certificates.
With Baader Service Bank GmbH (100% subsidiary) and the
participation in the Conservative Concept Portfolio
Management Group, Baader Wertpapierhandelsbank AG
becomes on of the largest independent service providers
relating to hedge funds in Germany.
September 2005 Due to its low market capitalisation, Baader is no longer
included in the SDAX.
December 2005 From 1 December 2005, Baader Wertpapierhandelsbank AG
is market maker on the EUWAX segment of the Stuttgart
Stock Exchange.
December 2005 To the year-end, 225 staff is employed in the Group. Baader
manages a total of 61,552 order books.

January 2006 The BAADER Wertpapierhandelsbank AG Board of
Directors resolves of make Parsoli Corporation Ltd., Bombay
(India) an offer of taking a 9.99% stake.
Parsoli Corporation Ltd., headquartered in Bombay, India, is
a financial service provider and approved by the Indian
Central Bank as a member of the national stock exchange and
its derivatives exchange.
February 2006 Baader Wertpapierhandelsbank AG applies for authorisation
as OTC market maker on the Stuttgart Stock Exchange for the
EUWAX market segment.
February 2006 The participation in the Conservative Concept Portfolio
Management Group is increased from 19.96% to 49.96%.
March 2006 Baader Wertpapierhandelsbank AG is admitted as marketspecialist
at the EUWAX-segment of the Stuttgart Stock
Exchange. The Executive Board of the Stuttgart Stock
Exchange has finalized the application at their meeting.
Baader Wertpapierhandelsbank AG will be market-specialist
at the EUWAX Third Market segment.
April 2006 According to the press release of January 2006, the Baader
Wertpapierhandelsbank AG takes a holding of 9.99 % in
indian financial service provider Parsoli Corporation Ltd.,
Mumbai.
June 2006 The Management Board of BAADER Wertpapierhandelsbank
AG resolved to make an offer to Parsoli Corporation Ltd.,
Mumbai that BAADER Wertpapierhandelsbank AG intends
to increase the stake in Parsoli Corporation Ltd. to 24,9%
June 2006 The Executive Board of Baader Wertpapierhandelsbank AG
intends to negotiate a possible investment in a financial
service provider in Oman.
Baader Wertpapierhandelsbank AG regards this as an
opportunity of expanding in a further growth market on an
international basis in line with its core business areas. The
possible investment of Baader Wertpapierhandelsbank AG
will provide access to the capital markets in the Gulf States
thus laying the foundation for further growth outside
Germany on a broader basis.
July 2006 Mr Christopher Schütz has been appointed as a member of the
Executive Board of Baader Wertpapierhandelsbank AG with
effect from 1 October 2006. Mr Schütz will be responsible for
the newly created MiFIS (Markets in Financial Instruments

Services) division.
His activities will focus on product development and sales of
MiFID-compliant products to institutional clients.
The MiFIS division has been set up within the industry for the
first time as an independent Executive Board office in order to
facilitate early and optimal national and international client
and partner positioning within the framework of the
implementation of the EU MiFID Directive.
December 2006 According the press release of June 9, 2006, the Baader
Wertpapierhandelsbank AG, Unterschleissheim, has increased
today its stake in the Parsoli Corporation Ltd. in Bombay,
India, from 9.08 % to 24.9 %.
Notes:
Parsoli Corporation Ltd. in Bombay, India, has approval from
the Reserve Bank of India (RBI) and the Securities and
Exchange Board of India (SEBI) as a finanical service
provider and is a member of the National Stock Exchange of
India, its associated derivates exchange and of the Bombay
Stock Exchange.
BAADER Wertpapierhandelsbank AG regards this as an
opportunity of expanding in a growth market on an
international basis in line with its core business areas, thus
laying the foundation for further growth outside Germany.
December 2006 To the year-end, 266 staff is employed in the Group. To the
year-end, Baader manages 120,579 order books.
June 2007 At half of year, 288 staff s employed in the Group. To the
half-year, Baader manages 156,322 order books.
July 2007 According the press release of July 12, 2007, the Baader
Wertpapierhandelsbank AG, Unterschleissheim, has increased
its stake in the Conservative Concept Group ,
Unterschleissheim from 44.61 % to 55.36%.
August 2007 As announced last year (June 21, 2006), Baader
Wertpapierhandelsbank AG has invested 24.9% in Gulf
Baader Capital Markets S.A.O.C. The shares of Gulf Baader
Capital Markets S.A.O.C. will be listed on the Muscat Stock
Market (MSM) in the "Closely Held Companies" market
segment.
The core business areas of Gulf Baader Capital Markets are
brokerage, corporate finance and asset management.
This investment provides Baader Wertpapierhandelsbank AG
with access to the capital markets in the Gulf states and thus

oadens the basis for additional growth outside of Germany.
As members of Baader Wertpapierhandelsbank AG's Board of
Directors, Uto Baader and Christopher Schütz will be
appointed to the Board of Directors of Gulf Baader Capital
Markets S.A.O.C.
December 2007 To the year-end, 298 staff is employed in the Group. To the
year-end, Baader manages 206,428 order books.
February 2008 Baader Wertpapierhandelsbank AG, Unterschleissheim, has
acquired Deutsche Börsenmakler GmbH (DBM), Frankfurt
with retrospective effect from 1 January 2008. As at 31
December 2007, DBM’s equity amounted to around
EUR 9.2 million and net profit for the period 2007 is around
EUR 5.4 million. The parties agreed to maintain
confidentiality about the purchase price.
DBM is the leading order book specialist in stock exchange
trading. Its market share on the Frankfurt Stock Exchange is
around 60% in this area, 30% on the Düsseldorf Stock
Exchange and 100% on the Berlin Stock Exchange.
Furthermore, DBM is the order book specialist for securitised
derivatives and shares on the Frankfurt Stock Exchange and
order book specialist for bonds on the Düsseldorf Stock
Exchange. Another of DBM’s divisions is agency business for
shares with national and international banks. DBM is also the
leading provider of financial portals for bonds and mutual
funds.
March 2008 DBM Deutsche Börsenmakler GmbH (DBM), Frankfurt, will
be amalgamated with its parent company, Baader
Wertpapierhandelsbank AG, Unterschleissheim, with
retrospective effect from 1 January 2008.
May 2008 Baader Wertpapierhandelsbank AG in Unterschleissheim has
applied for a licence to conduct banking transactions –
deposit-taking, lending, custody, guarantee and giro
transactions in accordance with Article 1 (1), clause 2, nos. 1,
2, 5, 8 and 9 of the KWG (German Banking Act) – and to
transact financial services business in accordance with Article
1 (1a), clause 2, nos. 1 and 3 (placement activities and
financial portfolio management) of the KWG.
Baader Wertpapierhandelsbank has also applied for
membership in the Einlagensicherungsfonds des
Bundesverbandes deutscher Banken e.V. (the Deposit

Protection Fund of the Association of German Banks), in the
Prüfungsverband deutscher Banken e.V. (the Auditing
Association of German Banks) and in the Bayerischer
Bankenverband e.V. (the Bavarian Association of Banks).
July 2008 The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin –
German Federal Financial Supervisory Authority) has granted
Baader Wertpapierhandelsbank AG of Unterschleissheim an
extension to its permit to conduct banking business pursuant
to Article 1 (1a) clause 2 numbers 1a, 1c and 3 as well as
clause 3 of the Kreditwesengesetz (KWG – German Banking
Act) (investment advice, placement business, financial
portfolio management as well as own account deals) as well
as to conduct banking business pursuant to Article 1 (1)
clause 2, numbers 1, 2, 5, 8 and 9 of the KWG (deposit
business, lending business, safe custody business, guarantee
business and giro business).
With effect of this notification, Baader
Wertpapierhandelsbank AG has become a member of the
Entschädigungseinrichtung deutscher Banken (EdB –
Compensation Fund of German Banks) pursuant to article 32
(3a) of the KWG.All the requirements for renaming Baader
Wertpapierhandelsbank AG to Baader Bank AG, as resolved
at the Annual General Meeting of 26 June 2008, are hereby
met. An application has already been filed for a corresponding
entry in the commercial register.
As announced on 13 May 2008, a further strategic step is
envisaged, namely merging Baader Service Bank GmbH, a
wholly owned subsidiary of Baader Wertpapierhandelsbank
AG with an existing full banking licence, with the parent
company.
October 2008 Mr Christopher Schütz, so far responsible for the
development, allocation and distribution of MiFID-compliant
securities services and products for institutional customers,
today has dropped out of the board of directors of Baader
Bank AG. It is Mr Dieter Silmen, member of the board who is
in charge of trading, who takes responsibility for Mr Schütz’
hitherto area of accountability.

November 2008 As of 1 January of next year, Baader Bank AG,
Unterschleissheim (Germany), will assume 981 bond order
books on the regulated market of the Düsseldorf Stock
Exchange. The Düsseldorf Stock Exchange has now granted
Baader, Germany’s leading specialist in securities trading, an
application to this effect, thus increasing the number of
Baader’s bond order books in Düsseldorf to 3,437. The
institute, which will consequently become the largest
specialist for bonds at the trading centre, will then also
perform daily fixing for public bonds together with Deutsche
Bundesbank
December 2008 As of 1 January 2009, Baader Bank AG in Unterschleissheim
will assume control of N. M. Fleischhacker AG in Frankfurt.
It is intended to continue operating the securities trading bank
as a subsidiary until further notice. The parties agreed to
uphold confidentiality regarding the purchase price.
December 2008 Baader Bank AG in Unterschleissheim continues to expand its
network of trading memberships. As part of the expansion,
Germany’s leading specialist in securities trading has, with
immediate effect, become a trading participant on Chi-X
Europe Limited, an off-exchange platform based in London.
January 2009 Baader Bank AG, Unterschleissheim, has increased its stake
in Baader Heins & Seitz Capital Management AG,
Unterschleissheim, from 70% to 75%. The subsidiary will be
renamed to Baader & Heins Capital Management AG.