Poland bucks the market
28 May 2010 Warsaw
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The Warsaw Stock Exchange (WSE) and the National Depository for Securities (NDS) have published the necessary amendments to their Rules in order to allow short selling in the Polish market, effective from July 1, 2010.
Short selling will be permitted for:
Shares participating in the WIG20 exchange index
Most liquid shares outside WIG20 index with the value of free-float shares at least equal to PLN 300 million and average daily value of trading at least equal to PLN 4 million
All government bonds listed on the WSE.
The list of securities available for short selling will be published by the WSE on a daily basis from June, 2010. By principle all securities that fulfill one of the above listed criteria should be available for short sale, although the Exchange Management Board may arbitrary not allow specific securities for short sale.
Each short sale order submitted to the exchange must include a special designation (short sale flag) to differentiate it from other broker’s orders. A short sale order will be automatically rejected in the following circumstances:
A short sale order is submitted for securities which, at the time of submitting the order, do not fulfil the eligibility conditions for short sale orders securities which fulfil the conditions are subject to a temporary suspension of accepting of short sale orders.
The exchange can discontinue accepting short sale orders in case of a significant increase in settlement risk, or in the event of a significant decrease in the value of the WIG index or the price of individual shares during a given trading session in combination with a high share of short sale transactions in the value of trading in all transactions on the market (short sale circuit breakers).
Short sale orders will be suspended for all shares if:
The value of the WIG index in relation to the reference value for the given session decreases by more than 3%
The share of the present value of trading in short sale transactions concluded in all shares available for short sale in the value of all transactions in these shares is greater than 20%.
Short sale orders will be suspended for individual shares if:
The price of the given shares in relation to the reference price for the given session decreases by more than 10%
The share of the present value of trading in short sale transactions concluded in the given shares in the value of trading in all transactions in these shares is greater than 20%.
After the closing of a trading session, the exchange will publish information about the cumulative volume, value of trading and number of short sale transactions.
Short selling will be permitted for:
Shares participating in the WIG20 exchange index
Most liquid shares outside WIG20 index with the value of free-float shares at least equal to PLN 300 million and average daily value of trading at least equal to PLN 4 million
All government bonds listed on the WSE.
The list of securities available for short selling will be published by the WSE on a daily basis from June, 2010. By principle all securities that fulfill one of the above listed criteria should be available for short sale, although the Exchange Management Board may arbitrary not allow specific securities for short sale.
Each short sale order submitted to the exchange must include a special designation (short sale flag) to differentiate it from other broker’s orders. A short sale order will be automatically rejected in the following circumstances:
A short sale order is submitted for securities which, at the time of submitting the order, do not fulfil the eligibility conditions for short sale orders securities which fulfil the conditions are subject to a temporary suspension of accepting of short sale orders.
The exchange can discontinue accepting short sale orders in case of a significant increase in settlement risk, or in the event of a significant decrease in the value of the WIG index or the price of individual shares during a given trading session in combination with a high share of short sale transactions in the value of trading in all transactions on the market (short sale circuit breakers).
Short sale orders will be suspended for all shares if:
The value of the WIG index in relation to the reference value for the given session decreases by more than 3%
The share of the present value of trading in short sale transactions concluded in all shares available for short sale in the value of all transactions in these shares is greater than 20%.
Short sale orders will be suspended for individual shares if:
The price of the given shares in relation to the reference price for the given session decreases by more than 10%
The share of the present value of trading in short sale transactions concluded in the given shares in the value of trading in all transactions in these shares is greater than 20%.
After the closing of a trading session, the exchange will publish information about the cumulative volume, value of trading and number of short sale transactions.
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