What Is the Warsaw Stock Exchange?
Let me tell you directly: the Warsaw Stock Exchange, or WSE, stands as the largest stock exchange in Central and Eastern Europe and one of Poland's key financial institutions. It manages both financial and commodities markets where you can trade instruments like company shares, bonds, derivatives, and spot and forward contracts for electricity and natural gas.
Key Takeaways
You should know that the WSE was founded in 1991, right after Poland's communist regime fell in 1989. It's the biggest exchange in its region, running both a financial market and a commodities market. As of April 2021, there were 432 companies listed on its main and parallel markets.
Understanding the Warsaw Stock Exchange (WSE)
Capital markets in Poland go back to 1817 with the Warsaw Mercantile Exchange, but the modern WSE was created in 1991 by the state treasury as a joint-stock company after the 1989 communist overthrow. I want to emphasize that it was set up as a contemporary stock exchange with electronic trading and dematerialized securities registration.
Trading kicked off on April 16, 1991, with five formerly state-owned companies listed: Tonsil, Próchnik, Krosno, Kable, and Exbud. By April 2021, the WSE had 432 companies on its main and parallel markets, totaling around 1.1 trillion PLN in market capitalization.
As the largest in Central and Eastern Europe, the WSE runs two main operations: a financial market for equities, derivatives, and bonds, and a commodities market for spot and forward contracts in electricity, natural gas, and carbon emission allowances. Commodities trading makes up about 40% of the group's revenue.
Economists often point out that Eastern Europe is poised for rapid growth, and the WSE stands to gain from increased investments. Its mission is to offer competitive exchange and clearing services, support economic growth, and maintain high standards and safety in trading practices.
The exchange is open Monday through Friday. Most equities sessions run from 9 a.m. to 4:50 p.m., derivatives start at 8:45 a.m., and other investment products begin at 9:05 a.m.
Corporate Social Responsibility
In 2009, the WSE launched the RESPECT Index, which is Central and Eastern Europe's first index for socially responsible businesses. It includes companies from Poland and worldwide listed on the WSE Main Market that adhere to top standards in corporate governance, disclosure, and environmental and social principles.
These companies undergo a three-step review by the WSE and the Association of Listed Companies (SEG), and they are audited by a project partner to ensure compliance.
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