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New stock exchange opens for trading

INTENSIVE trading on the new Slovak stock exchange, Slovenská Burza Cenných Papierov (SBCP), should start in the last week of January, according to its director general. Only a single SBCP member, RM-S Market o.c.p. was prepared for trading on the first trading day.
"Most of the seventeen members of the new stock exchange should be connected to the trading system by the end of this week, and all the members will be prepared for trading in two weeks," said SBCP director general Darina Huttová. During the first trading week, brokers will mostly register entities interested in trading, she added.


Darina Huttová addresses the press on the first day of trading.
photo: Courtesy of SBCP

INTENSIVE trading on the new Slovak stock exchange, Slovenská Burza Cenných Papierov (SBCP), should start in the last week of January, according to its director general. Only a single SBCP member, RM-S Market o.c.p. was prepared for trading on the first trading day.

"Most of the seventeen members of the new stock exchange should be connected to the trading system by the end of this week, and all the members will be prepared for trading in two weeks," said SBCP director general Darina Huttová. During the first trading week, brokers will mostly register entities interested in trading, she added.

A total of 496 issues from 467 issuers were selected for trading on the new stock exchange. When selecting issues of shares to be offered for trading, bankrupt companies and companies in liquidation were excluded. Shares of companies whose data was not in accordance with the information listed in the commercial register did not make it on the list either.

Government bonds will not be traded on the new stock exchange because of the negative relationship between the Finance Ministry and the SBCP. Huttová said: "I do not expect government bonds to be included in the trading until after the parliamentary elections."

The stock exchange also will introduce new indexes. They will be created based on the evaluation of a group of securities after more liquid trading.

The SBCP board of directors accepted 17 brokerage firms as members of the new stock exchange. Out of a total of 18 only the application of Siveco Brokers, o.c.p., a.s was turned down.


Open for business: Slovakia's newest stock exchange is planning to connect the country with foreign capital markets.
photo: Ján Svrček

The first members of the new stock exchange include Prvá Komunálna Banka, RM-S Market, AT Konzult, Aval Kapital, Finrex, Foral Invest, I.F.C., Invest Brokers, Koruna Invest, Palčo Brokers, Pro Partners, Prvá Paroplavebná, Slavia Capital, Sevisbrokers, VBrokers, Top Invest, and Danubia. The entrance fee is Sk750,000, and an annual membership fee is Sk 220,000. A stock-exchange membership is transferable and a broker can sell or donate it.

However, hopes that Slovakia's second stock exchange might boost the limping capital market were refused by both stock exchange traders and SBCP itself.

"At this point such transformation cannot help to revive the Slovak capital market," said Huttová.

"Where there is no demand for new items, a second stock exchange will be a little use," said Michal Holík, chief trader at J&T Securities brokerage house.

However Huttová does not rule out the possibility of the SBCP's merger with the Bratislava Stock Exchange (BCBP). "It is also the luxury to have the two stock exchanges, so they should be merged, something that would be rational step on such a small market," she said adding that this may happen within in the year.

At the moment, investors can join trading on the SBCP through 16 trading points of the RM-S Market, which will sign a commission contract with clients. Their instructions will be sent on-line to the SBCP, which, in contrast with the over-the-counter RM-System, can receive instructions only from its members.

Slovenská Burza Cenných Papierov's (SBCP) first transaction took place on the second trading day, Tuesday, January 15.
A block of 753 shares of Restitution Investment Fund (RIF) was sold at an average price of Sk740.74 within standard stock market operation. The aggregate volume of transactions represented Sk544, 443, 000.

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