The Warsaw Stock Exchange (WSE) plans to raise capital through equity or bond issues to fund ambitious growth plans outlined today.
Setting out its strategy for the rest of the decade, under the title WSE.2020, the Polish exchange group said it wanted to invest in diversifying its operations beyond the cash market.
WSE also said it will continue to pursue strategic alliances and “partnership-like cooperation” with major financial entities to play a dominant role in the Central and Eastern Europe (CEE) region.
A possible merger with Vienna-headquartered CEESEG, which operates four national exchanges in the region, is still on the table though WSE did not confirm how far talks have progressed. The two exchange groups have been in discussions over a potential link-up since early 2013.
In order to diversify its business, WSE plans to build on its existing commodities market by encompassing electricity and energy products and also plans to increase the amount of derivatives and non-European shares traded on its venues.
During 2013, WSE created the WIG30 index of leading Polish shares to create new derivatives products WIG30short and WIG30lev.
It will also create and integrated post-trade structure for clearing and settlement in Poland and the wider CEE region.
Technology upgrades include the implementation of a new universal trading platform (UTP) provided by NYSE Euronext’s NYSE Technologies, due in mid-April, but the future of NYSE Euronext’s technology division remains uncertain, with new owner ICE reportedly looking to break up and sell NYSE Technologies.
The group as a whole also plans to further diversify its income and in August last year it invested in new London-based multilateral trading facility Aquis, taking a 30% stake.
It also hopes to increase trust and confidence in the Polish capital market through improved corporate governance and education programs in order to build an international capital centre in Warsaw.