News

GPW Becomes an Affiliate of the World Federation of Exchanges

PRESS RELEASE

• The World Federation of Exchanges has approved the Warsaw Stock Exchange (GPW) as a WFE Affiliate
• The WFE has accepted GPW’s application to start the process of becoming a full member

The World Federation of Exchanges (WFE) approved the application of the Warsaw Stock Exchange (GPW) to become a WFE Affiliate. This establishes a partnership between GPW and WFE including the exchange of information and statistics as well as the participation of GPW in certain events organised by WFE. GPW’s affiliate status is an interim step towards full membership of the Federation.

“We are very pleased to have established a partnership with the World Federation of Exchanges (WFE) which gathers over 250 market infrastructure operators. What we bring into this community is the great success story of the Polish capital market which joined the world’s developed markets twice as fast as the markets in South Korea or Israel. Our success has not left us complacent. Over the past four years, we have developed advanced technological solutions for stock exchanges and their clients. WFE offers great opportunities to build business relations with our colleagues from other exchanges and be part of an organization, and policy dialogue, that shapes the future of our industry," said Marek Dietl, President of the Management Board of GPW.

In order to obtain the affiliate status of the World Federation of Exchanges, an applicant must have significant influence on the development of the capital market in its country or region. Another prerequisite is membership of the local regulator in the International Organization of Securities Commissions, which comprises financial market regulators and supervisors. The financial market regulator in Poland has been a member of IOSCO since 1991.

The WFE also approved GPW’s application to open the process of becoming a full member of the Federation.

***

About the World Federation of Exchanges (WFE)

Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 250 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of its members, 35% are in Asia-Pacific, 45% in EMEA and 20% in the Americas. WFE’s 57 member CCPs collectively ensure that risk takers post some $1 trillion (equivalent) of resources to back their positions, in the form of initial margin and default fund requirements. WFE exchanges are home to 47,919 listed companies, and the market capitalisation of these entities is over $109 trillion; around $137 trillion (EOB) in trading annually passes through WFE members (at end 2020).

The WFE is the definitive source for exchange-traded statistics, and publishes over 350 market data indicators. Its free statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.

With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. The WFE seeks outcomes that maximise the common good, consumer confidence and economic growth. And it engages with policy makers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system.

***

History of the WSE

On 12 April 1991, the then Ministers of Ownership Transformation and Finance signed the Deed of Incorporation of the joint stock company "Giełda Papierów Wartościowych w Warszawie S.A." Four days later, on the day of the WSE's inaugural session, shares of five companies were traded and the turnover amounted to PLN 1990. Since 2018, the WSE has been classified as one of the 25 developed markets by the FTSE Russell agency. The history of the capital market on Polish soil dates back to the early 19th century. The first in Poland and one of the few in Europe, the Merchant Exchange, was established in Warsaw on 2 May 1817, soon became the largest market in Tsarist Russia, responsible for 5-6% of global securities trading. A thriving stock exchange, accounting for 90% of the domestic turnover, also operated in Warsaw in the interwar period. After the period of the People's Republic of Poland and the planned economy, it was not until 1989, with the political and economic transformation, that the Polish capital market was able to develop again.

Stock exchange today

The average EoB equity daily trading volume on the WSE was PLN 1,078.9 million in December 2021. The Main Market listed 430 companies (383 domestic and 47 foreign) and the NewConnect market listed 380 companies (376 domestic and 4 foreign) at the end of December 2021. Last year, the WSE Group generated record sales of PLN 403.8 million and one of the highest ever net profits of over PLN 151 million. According to the Federation of European Securities Exchanges, in 2020 the WSE ranked first in Europe in terms of percentage increase in equity turnover and third in terms of the value of initial offerings. At the end of 2020, the WSE was also the second market in Europe in terms of liquidity and achieved the status of world leader in terms of the number of listed companies in the gamedev sector.

WSE position in the region

The WSE is the leader among stock exchanges in Central and Eastern Europe by the number of listed companies and the total capitalisation of domestic companies. The WSE's share in trading on stock exchanges in the region is 81%. The WSE leads the initiative of the Three Seas Stock Exchanges and aspires to the role of a regional hub for young technological companies with huge potential, the so-called unicorns. Negotiations are currently underway for the WSE to acquire a majority stake in the Armenian Exchange.

***

The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl