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WSE focuses on the development of the Catalyst market

The revitalisation of the Catalyst market, enhancement of market liquidity and the development of tools aimed at increasing transparency in the corporate bond market are among the key priorities of the Warsaw Stock Exchange (WSE) for this segment of the capital market. The challenges and growth prospects of the debt market were discussed by participants of the conference “Corporate Bonds in Investors’ Portfolios: Indices, Products and Outlook”, held at the Warsaw Stock Exchange on 16 July.

The event brought together representatives of the Exchange, financial institutions, issuers and investors, who discussed current developments in the corporate bond market, the future direction of the Catalyst market and solutions supporting its continued growth. One of the recurring themes throughout the conference was market liquidity, widely recognised as one of the key factors determining the attractiveness of the market for its participants.

“The market is developing at a very dynamic pace. We are observing strong inflows of capital into bond funds and Employee Capital Plans (PPKs), record investor interest in public offerings and sizeable transactions conducted by the largest listed companies, including WIG20 constituents. This demonstrates that the Polish capital market is maturing and gaining momentum. As the Exchange, we are committed to actively supporting this development. For this reason, the revitalisation of the Catalyst market is one of our strategic priorities for this year. Together with market experts, we are working on structural and regulatory improvements, with a particular focus on enhancing liquidity,” said Michał Kobza, Member of the Management Board of the Warsaw Stock Exchange.

During the conference, representatives of WSE presented initiatives being pursued jointly with market participants to support the further development of Catalyst. These include, among others, streamlining the issuance process, improving market accessibility and liquidity, expanding market data and analytical tools, and identifying regulatory barriers that may constrain the development of the corporate bond segment.

The key directions of these efforts were presented by Dariusz Mejszutowicz, Deputy Director of WSE’s Primary Market Department. During his presentation, it was emphasised that the Exchange’s objective is to further strengthen Catalyst’s position as the leading venue for trading corporate bonds and to develop solutions that increase the activity of both issuers and investors.

An important initiative supporting market development and transparency is the Corporate Bond Market Monitoring System launched by GPW Benchmark. The tool, which debuted one day prior to the conference, provides market participants with insights into investor activity and current developments in the corporate bond market. The system includes two indices: the Poland Corporate Bond Financials Index (POLCBF) and the Warsaw Public Debt Instruments Index (WIPID). The data used to calculate the indices are sourced both from the Catalyst market and from transactions settled through KDPW.

“Corporate bonds should form part of investors’ areas of interest and investment portfolios, as they represent an attractive means of portfolio diversification,” emphasised Aleksandra Bluj, President of the Management Board of GPW Benchmark.

Attention was devoted to the Poland Corporate Bond Financials Index (POLCBF), developed by GPW Benchmark in cooperation with TFI PZU. The index covers both bonds listed on the Catalyst market and instruments traded over the counter, enabling a more comprehensive representation of developments in the market for bonds issued by financial institutions.

“The Polish corporate bond market is dominated by investment fund companies. Given the scale of transactions executed in the over-the-counter (OTC) market, which accounts for approximately 80% of total trading volume and an even greater share within the financial institutions segment, we considered the use of data from securities registers maintained by KDPW to be essential from the perspective of the index’s representativeness and effectiveness. The regular publication of information on bond issues, trading activity and transaction prices will increase the transparency of the market for bonds issued by financial institutions in Poland and contribute to a more accurate assessment of prevailing market conditions,” added Jakub Krawczyk, Director of Corporate Bonds at TFI PZU.

The conference concluded with an expert panel entitled “The Future of the Corporate Bond Market in Poland”, moderated by Beata Tylman-Nowakowska, Deputy Director of WSE’s Market Development Department. The discussion featured Marta Byczkowska, Director of Capital Markets at Bank Pekao, Jakub Krawczyk of TFI PZU and Michał Stępniewski, Vice President of the Management Board of PKO Bank Hipoteczny.

The panellists agreed that, despite the dominant role of the over-the-counter market, Catalyst remains an important component of Poland’s domestic corporate bond market. They highlighted the importance of common market standards, disclosure obligations and transparency, all of which strengthen investor protection and build confidence in the market. Among the key challenges identified were the further improvement of market liquidity and maintaining the competitiveness of the domestic market against foreign financing alternatives.

The conference, organised by the Warsaw Stock Exchange, GPW Benchmark and TFI PZU, represented another stage in WSE’s ongoing dialogue with market participants regarding the future of the corporate bond segment. The outcomes of the ongoing work on the development of Catalyst, together with further market-supporting initiatives, are expected to be presented in the coming months.