Warsaw Stock Exchange Extends Preferential Terms To Market Makers

The move is designed to boost trading activity in WIG20 futures and SME stocks.

The Warsaw Stock Exchange (GPW) has announced that it is extending the period of its reduced transaction fees on trade in WIG20 futures. It has further decided to waive its fees charged to market makers of SME stocks until the end of September 2016.

The reduced transaction fees have been in place since 1 January 2016 and following the decision of the GPW Management Board, they will now also apply in Q2 and Q3 of 2016. The fees charged to market makers of WIG20 futures have been reduced by 26.5% (above 15 thousand contracts per month) or 41.2% (above 30 thousand contracts). The preferential terms of trading in this segment are offered until the 30th of June 2016. The GPW Management Board has decided to waive fees charged on trade in SME stocks on the GPW Main Market until the end of Q3 (30 September 2016).

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Commenting on the GPW’s decision, the Vice President of the GPW Management Board, Grzegorz Zawada, said: “We offer preferential terms of trading to market makers in order to support the liquidity of trade both in WIG20 futures and in stocks of small and medium-sized companies listed on GPW.”

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“In our opinion, these are two very important market segments. Our existing experience confirms that reduced fees encourage additional activity of market makers, which enables investors to trade on more attractive terms. This improves the competitiveness of the Polish capital market and supports its further development,” he added.

Market makers are local or international investment firms which sign an agreement with GPW to provide quotes (issue buy and sell orders) for stocks, bonds and other financial instruments listed on GPW’s markets, ensuring liquidity of trade in such instruments. There are now 22 market makers among the 57 investment firms and banks which are active on GPW as well as exchange members.

GPW operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. The extended preferential terms of trading are expected to boost activity in both market segments.

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