Budapest Stock Exchange

From MarketsWiki
Jump to: navigation, search
float
Budapest Stock Exchange
Bse-budapest.png
Founded 1990 (re-formed)
Headquarters Budapest, Hungary
Key People Richárd Végh, Chairman and CEO of the Budapest Stock Exchange
Products BUX, BUMIX, CEOP20, DWIX
Website http://www.bse.hu

The Budapest Stock Exchange in Hungary is an electronic trading exchange listing mostly Hungarian equities, bonds, currencies and derivatives. A year after their acquisition by an Austrian-based exchange operator, the BSE and the Budapest Commodities Exchange merged in 2005 bringing all equities, bonds and derivatives trading to the BSE.

The Budapest Stock Exchange was ranked 44th among derivatives exchange by volume in 2018, down 4.5 percent from a year earlier, according to the annual volume survey published by the Futures Industry Association (FIA).[1][2]

History

The Budapest Stock Exchange (BSE) originated as the Pest Commodities and Stock Exchange in 1864 but closed following the start of World War II. It re-opened in June 1990 with an open outcry system after the collapse of Hungary's communist government and was followed a month later by the Budapest Commodities Exchange (BCE), which initially listed grain futures.

The BSE had listed six shares by the end of its first year of trading while the BCE added livestock futures in 1991 and currency contracts in 1993. From 1995 until 1998 the BSE traded securities partly by open outcry but after introducing the MultiMarket Trading System (MMTS) in 1998 the exchange closed its physical trading floor in 1999, followed a year later by the BCE.[3]

Consolidation

In 2004 a majority stake in BSE was acquired by a group of Austrian investors headed by Wiener Börse, owner of the Vienna Stock Exchange, and a group of banks led by Österreichische Kontrollbank AG. A year later the group merged its newly acquired Budapest Commodities Exchange with the BSE, introducing derivatives trading to the BSE. In late 2008 Wiener Börse raised its stake in the BSE an additional 25% for a total stake of 37.7% while the Austrian group's total stake in the BSE now stands at 68.8%.[4] Wiener Börse also owns large majority stakes in Slovenia's Ljubljana Stock Exchange and the Prague Stock Exchange and recently announced that it would introduce a single trading system linking them with the BSE by 2010 or 2011.[5]

Key People

CEO György Mohai has twice served as the BSE's acting CEO: in 2006 prior to the appointment of previous head Árpád Pál and for three months in 2008 prior to his own permanent appointment to the top job in June.[6] Mohai had previously spent four years as the BSE's deputy CEO and the previous two years (2002-2004) as an advisor to the exchange.[7] Prior to that Mohai worked for ten years in the securities industry and spent 13 years as an academic and research fellow, including at Budapest's Corvinus University. He is a board member of the Central Clearing House and Depository and the Investor Protection Fund.

Key Products

The BSE has two main domestic equity indexes: the official equity BUX, the benchmark for the Hungarian share market, and the small-cap and mid-cap focused BUMIX. The BUX consists of between 12 and 25 stocks - revised twice per year - that satisfy several exchange requirements based on size and liquidity.[8] The exchange also owns and calculates the Central European Blue Chip Share Index (CETOP20) and the Daiwa-MKB Treasury Bill Yield Index (DWIX).

Volumes

Year Total Annual Volume* Percent Change
2018 6,703,976 (-)4.5%
2017 7,021,245 11.1%


References

  1. 2010 Annual Volume Survey. Futures Industry.org.
  2. 2018 Annual Volume Survey. Futures Industry.org.
  3. Brief history of the Exchange. Budapest Stock Exchange.
  4. The Vienna Stock Exchange increases its stake in the Budapest Stock Exchange. Wiener Börse.
  5. Wiener Boerse plans single trading system for Vienna, Budapest, Ljubljana, Prague. Portalino.
  6. Previous managers. Budapest Stock Exchange.
  7. Curriculum Vitae: György Mohai. Budapest Stock Exchange.
  8. Indices. Budapest Stock Exchange.