Poles say yes to short sale transactions
05 May 2010 Warsaw
Image: Shutterstock
The Warsaw Stock Exchange (WSE) will make short sale transactions available under new rules as of 1 July 2010.
On 19 April 2010, the Polish Financial Supervision Authority (KNF) approved an amendment to the Exchange Rules which makes short sale transactions available on the WSE under the rules set out in the amended Act on Trading in Financial Instruments. These regulations are accompanied by an amendment to the Detailed Exchange Trading Rules. The amendment to the Exchange Rules and the Detailed Exchange Trading Rules will take effect as of 19 May 2010. All the regulations are available at www.gpw.pl.
The list of securities available for short sale will be published on the WSE website; it will contain all shares participating in the WIG20 index as well as the most liquid shares outside the index and Treasury bonds. The list will first be published in mid-June.
The new short sale rules were developed by the institutions of the Polish capital market on the basis of the best international standards. The rules create conditions of effective and comprehensive use of this investment technique by experienced investors. In those markets where short sale is used effectively, it has a positive impact on the liquidity of trading and the effectiveness of valuation of financial instruments, which are the core market features from the perspective of investors.
On 19 April 2010, the Polish Financial Supervision Authority (KNF) approved an amendment to the Exchange Rules which makes short sale transactions available on the WSE under the rules set out in the amended Act on Trading in Financial Instruments. These regulations are accompanied by an amendment to the Detailed Exchange Trading Rules. The amendment to the Exchange Rules and the Detailed Exchange Trading Rules will take effect as of 19 May 2010. All the regulations are available at www.gpw.pl.
The list of securities available for short sale will be published on the WSE website; it will contain all shares participating in the WIG20 index as well as the most liquid shares outside the index and Treasury bonds. The list will first be published in mid-June.
The new short sale rules were developed by the institutions of the Polish capital market on the basis of the best international standards. The rules create conditions of effective and comprehensive use of this investment technique by experienced investors. In those markets where short sale is used effectively, it has a positive impact on the liquidity of trading and the effectiveness of valuation of financial instruments, which are the core market features from the perspective of investors.
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