Misty future of the Warsaw Stock

A few years ago in the Economic Community prevailing view that in the near future in the European region will remain one or two dominant markets, while the rest will be absorbed or pushed out. This prediction is not fulfilled, however, in particular, the Warsaw Stock Exchange now faces a choice: to become a full partner after the privatization in the community or be on the sidelines of a European stock exchange board.

The consolidation in full swing

The Polish government has advocated that the Warsaw Stock Exchange (Warsaw Stock Exchange, WSE) has continued to play a key role in the eastern region of Europe. This is not an easy task, and for its success must be at least as soon as possible to carry out the privatization of the Exchange, to double its capitalization and to bring the rules of bidding in conformity with the standards of the European Union. Experts believe that the basic income could be the Warsaw Stock Exchange medium-sized companies that WSE should concentrate on dealing with the shares of these companies.

According to the President of the Governing Board WSE Wiesława Rozlutskogo (Wieslaw Rozlucki), stock of Europe in the future will be a complex interplay of small, medium and large markets, with a small stock exchange trading system will use their larger counterparts. At the annual meeting of the Federation of European Stock Exchanges (Federation of European Stock Exchanges, FESE), which was held in early June this year in Frankfurt, the heads of European stock exchanges noted that in the foreseeable future should not expect the establishment of a unified European space superbirzhi. At the same time, the meeting participants agreed that the number of exchanges should be reduced.

At the European space is dominated by exchanges such as Deutsche Boerse, Euronext and the London Stock Exchange (London Stock Exchange, LSE). They are actively fighting for the expansion of its influence, indirectly contributing to the consolidation of European securities markets.

Earlier this year, intensified the struggle for the Amsterdam stock exchange between the LSE and the stock exchange Euronext. In northern Europe, the operator OM Stockholm Stock Exchange after the merger with the operator of the Helsinki Stock Exchange HEX is strengthening its influence in the Baltic region, under a new brand of OMHEX. Acquisition of the Vilnius Stock Exchange has strengthened the position of OMHEX, and now the operator already has an interest in the Warsaw Stock Exchange. However, in this case OMHEX faced with such a strong competitor, as the Vienna Stock Exchange (Vienna Stock Exchange, VSE).

Vienna Stock, in close cooperation with the four Austrian financial institutions (HVB, Erste Bank, Raiffeisen Zentralbank and Oesterreichische Kontrollbank) does not attempt to realize its ambitious plan to create a single securities market in Central and Eastern Europe. Earlier attempts to create such a market as Newex fails. Now Vienna has an interest in the consolidation of regional stock exchanges in Central and Eastern Europe, including Warsaw, Ljubljana, Prague and Bratislava.

This year, VSE acquired a majority share of the Budapest Stock Exchange (Budapest Stock Exchange, BSE) and BSE, together with the intention to participate in the tender for the acquisition of the share of WSE. The new leadership of BSE in the Warsaw Stock Exchange sees a strategic partner, which, in turn, could provide an opportunity to buy a share of the Budapest and Vienna stock exchanges for the establishment of a partnership triangle Vienna-Budapest-Warsaw. This triangle can fully develop their potential by 2010 By this time, Poland and Hungary are planning to move to a single European currency.

In an interview with the head of WSE Wieslaw Rozlutsky, responding to a question on the formation of strategic alliances, clearly stated that the Warsaw Stock develops relationships with the four largest European exchanges, as well as consider the possibility of establishing a Central European alliance, which could enter Warsaw, Vienna and Budapest.

Rushing to privatize

Poland rushing to privatize its Stock Exchange as soon as possible (referred to as mid-2005), to avoid being marginalized in the integration processes of European stock exchange space. Of all EU countries, only Malta and Poland Stock Exchange belongs to the State. 99% of the Warsaw Stock Exchange owns the property of the Polish Ministry (Treasury ministry).

According to the Polish government, to identify a consultant for the privatization of the Exchange should be a competition, which will take place is about. The consultant is required before the end of this year to determine what scenario will be the privatization of WSE. The final choice can be made between strategic alliances with foreign exchange and public offerings. If it is the preferred Strategic Alliance, the State should abandon the dominant role, so as not to create conflicts of interest. If a decision is made on public offerings WSE, the State will be able to keep the minority though, but a significant stake.

The privatization of the Warsaw Stock Exchange is inextricably linked with the question of the future owner of the national securities depository (National Securities Deposit), as is currently owned by the three depositary shareholder.

The main task of the Polish government sees the establishment of large, liquid and reliable securities market of Poland in 2010. By this time, the total market capitalization, including the Warsaw Stock Exchange, a central registry of (Central Offering Table) and alternative trading platforms (Alternative Trading Platforms), must comply with the European average, ie approximately 50% of GDP. And in 2004 the total capitalization of the securities market in Poland is only 21% of GDP.

Despite its small size compared with the leading European exchanges, the Warsaw Stock Exchange in recent times become one of the fastest growing markets IPO in Europe. If you do not take into account the LSE, which is considered to be the absolute leader in this field, only the Euronext Stock Exchange and the WSE can be confidently described as the most active players on the European market IPO. Only the first half of 2004 on the Warsaw Stock Exchange IPO proposals have been deployed several times more than for the whole of 2003. According to analysts, the entry of Poland into the European Union increases the interest of foreign investors in the Polish market. And this interest will not wane over the next two years, which, in turn, may contribute to the successful integration of WSE in a European securities market. And with the turnover, which reached the WSE is now, it did not lasted long in the role of the independent market.