Polish trading venue the Warsaw Stock Exchange (WSE) has introduced its first exchange-traded fund (ETF).
The new ETF, Lyxor ETF WIG20, tracks the performance of Poland's WIG20 index and as such allows investors to purchase the WSE's 20 largest and most liquid stocks with one order.
“We strive to provide investors with the broadest possible range of instruments allowing them to pursue diverse investment strategies,” said Ludwik Sobolewski, WSE president and CEO. “ETFs are a popular and frequently used financial instrument on foreign exchanges.”
The Lyxor ETF on WIG20 is available in the WSE's continuous trading system and subject to the same trading rules as equities. The ticker for the instrument is ETFW20L. Market makers Societe Generale and UniCredit will provide liquidity for the instrument.
The launch of ETFs on the WSE is the latest in a series of moves aimed at stimulating international trading activity on the Polish equity market. Since January 2010, the Warsaw exchange has formed an alliance with global exchange group NYSE Euronext to develop its trading platform, approved naked short-selling for a number of equities listed on its market and increased the proportion of trading conducted via remote trading members.
Owned by French investment bank Societe Generale, Lyxor is a specialist asset management firm that focuses on tracker funds, structured funds, alternative funds and absolute return funds.