Strategic Priorities for Developing Capital Markets. 14 May 2014

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Hector Lambert
6 years ago
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1 Strategic Priorities for Developing Capital Markets 14 May 2014

History and Development of WSE History 1991 - started operations, 100% held by State Treasury until its IPO in November 2010 Shareholders - State Treasury:35% Free Float:

new companies Largest national stock exchange in CEE (~900 companies listed incl. 403 on Main Market) Ca.

2 History and Development of WSE History started operations, 100% held by State Treasury until its IPO in November 2010 Shareholders - State Treasury:35% Free Float: 65% Feb 2012 acquired Polish Power Exchange (PolPX), the largest electricity market in CEE Dec 2012 launched Gas Exchange 30% interest in Aquis Source: WSE Strong flow of new companies Largest national stock exchange in CEE (~900 companies listed incl. 403 on Main Market) Ca. 220bn market capitalisation (33% foreign) One of the fastest developing European exchanges No. 1 institutional investment pool in CEE World-class technology: the new universal trading system UTP was launched in April May

3 Dominant Players in CEE and Beyond Warsaw Stock Exchange Attractive to international investors and accessible through WSE remote members (e.g. Credit Suisse Europe Ltd) and active in both financial and commodity markets Attracts regional listings & acts as competitor to regional exchanges: foreign issuers (58), dual listings (25), nominal listings and indices - WIG Ukraine Index (11 companies) CEESEG CEE Stock Exchange Group Regional exchanges brought under one umbrella with the aim to create synergies and raise liquidity Shared infrastructure and services but home market principle Istanbul Stock Exchange Vision: İstanbul as a regional and international financial center (IFC) Strategic partnership based on Collaborations = Capacity, Connectivity, Competition and Capital Believes in no differentiation between borders or regions as liquidity finds its home eventually and is led by investment flows not residence Strategic partnerhip concluded with NASDAQ OMX in 2013 to strengthen Istanbul s position as a capital markets hub for Eurasia region. MOEX Moscow Exchange Ongoing business re-engineering post IPO as part of Moscow International Financial Centre (MIFC) 14 May

development: - Interbank money markets - Treasury bill and FX markets - Government bond

4 Building of Successful Exchange through Targeting and Sequencing Setting the right agenda for development Identifying key counterparties Allocating resources Product development: - Interbank money markets - Treasury bill and FX markets - Government bond markets - Corporate bond and equity markets - Derivatives and structures products 14 May,

5 Impediments to Regional Integration Different levels of capital market development Differences in market sizes and range of products Lack of critical mass to attract issuers & investors Uneven development of institutional investors Different trading systems, deficent infrastructure Ownership structure of exchanges and post-trade environment (CSD & CCP) Regulatory regimes and legal environment not harmonised Varying application of EU Directives by different countries Regulatory regimes - the biggest obstacle Taxation systems Ongoing reporting requirements Limited enforcement of regulatory requirements Tendency to protect domestic market than to support integration Local market seen as national treasure Differing perceptions of risks, costs vs. benefits by investors and regulators, Lack of regional focused products and hedging instruments Limited emphasis on corporate governance, timely financial reporting and transparency 14 May

6 Strategic Priorities WSE mission Main strategic goal of WSE To achieve, either independently, via strategic alliance or partnership-like cooperation with significant entities from the capital markets, a dominant role in the Region and important position on the European capital markets scene. Competitive both in quality and price stock exchange & clearing services Efficient allocation of capital and asset valuation Capital market credibility Strengthen the economies of Poland and the Region of CEE Economic centre of the Region International capital centre 14 April,

WARSAW STOCK EXCHANGE

WARSAW STOCK EXCHANGE THE MARKET DRIVEN BY INFORMATION WARSAW, 4 DECEMBER 2013-1- Table of contents Introduction WSE business lines and its internationalization Financial highlights Here and beyond the