This page explains how German Freiverkehr / “Open Market” tiers compare to HMRC’s expectations for markets of a Recognised Stock Exchange (RSE), and why Oppl treats them as non-qualifying for ISAs
| Criterion | HMRC expectation for RSE markets | Regulierter Markt (Prime/General) | Freiverkehr / Open Market (Quotation Board, Basic, Scale, etc.) |
|---|---|---|---|
| Legal/regulatory basis | Market operates with “proper and effective arrangements for financial regulation”; akin to a recognised investment exchange. | EU-regulated market (MiFID RM) under public law. | Exchange-regulated, private-law trading venue; not MiFID RM/MTF. |
| Admission standards | Formal, transparent admission regime; prospectus/approval where applicable. | Prospectus & listing authority supervision. | Lighter, venue-specific rules; prospectus often not required. |
| Continuing obligations | Meaningful periodic and ongoing disclosure; market abuse oversight. | IFRS/periodic reporting; regulated information regime. | Ad-hoc disclosure via exchange rules; periodic reporting requirements limited/variable. |
| Supervision/oversight | Regulatory oversight consistent with “normal business of a stock exchange.” | Exchange + competent authority (e.g., BaFin) at RM level. | Primarily exchange rulebook oversight; limited statutory overlay at market level. |
| Investor protection signal | High — aligns with RIE-like standards (in UK terms) or equivalent overseas. | High. | Lower; curated tiers (e.g., Scale) improve signals but remain below RM/MTF. |
| Oppl ISA stance | — | Eligible | Ineligible • Scale: possibly, but still Freiverkehr |
Sources: German exchange rulebooks and public market descriptions; HMRC guidance and emails quoted below.
“Some tax rules refer to shares and securities ‘admitted to trading on’ a recognised stock exchange… Other tax rules refer to ‘listed on a recognised stock exchange’… ‘Listed’ means admitted to trading and included in the official list (UK or equivalent overseas).”
“we do not see any reason why an MTF could not be designated as a recognised stock exchange.”
“there is no blanket ban on MTFs qualifying providing they satisfy our standard criteria.”
“To date, the only MTFs which have RSE status are those which are operated by traditional stock exchanges… where the stock exchange as whole has been designated, including the MTF segment.”
“For ISAs… They do not have to be ‘listed’ in order to qualify, if traded on RSE markets in the UK or the EEA.”
“RSE status… is determined by legal designation… Any market operated by that stock exchange will form part of the RSE as matter of legal designation, unless specified otherwise…”
“To put it another way, ‘not listed’ does not mean ‘not designated as an RSE’… Typically a security traded on a ‘not listed’ market will satisfy a requirement along the lines of ‘traded/admitted to trading’ on an RSE…”
“Since 2013 securities can meet the RSE part of the ISA test by either (a) being listed on an RSE, or (b) being admitted to trading on any market of an RSE in the EEA.”
How we join this up: The 2013 ISA limb uses “admitted to trading on a market of an RSE.” HMRC’s emails confirm markets may be “not listed” yet still be markets of an RSE. However, HMRC also looks at whether a venue functions like a stock exchange with proper regulation. Freiverkehr tiers do not reach that standard; hence our exclusion.
If HMRC publishes specific comfort or if a Freiverkehr tier is re-authorised as an RM/MTF or otherwise designated, we will revisit.
Scale is a curated sub-segment of the Frankfurt Open Market with a sponsor requirement, audited accounts and enhanced information (e.g., research coverage). It is not an RM or MTF; it inherits the legal character of Freiverkehr.
Direct quotations from HMRC emails are dated 13 October 2023 and 15 October 2025