EdW - Entschädigungseinrichtung der Wertpapierhandelsunternehmen

Since 1998 all securities trading companies have been obliged to secure their liabilities from securities transactions through the affiliation with a compensatory institution.

However, the companies are not responsible themselves for registration with the EdW. The "Federal Financial Supervisory Authority " (BaFin - Bundesanstalt für Finanzdienstleistungsaufsicht) automatically informs the EdW if it has admitted a company to securities trading. The respective securities trading company will then immediately be informed by the EdW of the documents to be filed and the contribution to be paid.