Vienna Stock Exchange

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Vienna Stock Exchange (Wiener Börse)
Vienna-200px.jpg
Founded 1771
Headquarters Vienna, Austria
Key People Christoph Boschan, Petr Koblic, Ludwig Nießen
Products Cash equities, bonds and structured products
Website en.wienerborse.at/


The Vienna Stock Exchange (Wiener Börse) is the only securities exchange in Austria and provides infrastructure, market data and information. The business of the Vienna Stock Exchange is based on securities trading and listing, market data, index calculation and IT services.

The Vienna Stock Exchange operates the central market datafeed for Central and Eastern Europe (CEE). In addition, it is an established index and IT service provider for the region.

The Vienna Stock Exchange was formed from the 1997 merger of the Austria’s cash market and derivatives exchange, offering trading, clearing and settlement of equities, bonds, and futures and options. It is a subsidiary of the CEE Stock Exchange Group (CEESEG), the largest exchange group in Central and Eastern Europe.[1]

In 2013, the Vienna Stock Exchange abandoned futures trading after diminishing volumes due to competition from Eurex.[2]

The Vienna Stock Exchange had been ranked as the world's 49th-largest derivatives exchange by volume in 2010 according to the annual volume survey published by the Futures Industry Association (FIA).[3] The FIA report, published in March of 2011, noted that the exchange's total volume for 2010 was up by 9.4% from the previous year, reaching 838,911 contracts.

History and Ownership

Wiener Börse was founded in 1771 as a trading venue for bonds and currencies, with equities added in 1818. The stock exchange was merged with the Österreichische Termin-und Optionenbörse (OTOB) derivatives futures exchange in December 1997 to form a new holding company, Wiener Börse, which was privatized in June 1999. The general Commodity Exchange founded in 1872 was joined with the Vienna Stock Exchange to form the Vienna Stock and Commodity Exchange in 1876. The OTOB was founded in 1989 by five banks, trading index futures and options, single-stock options and bond futures. [4]

The exchange ownership is split 50:50 between its listed companies and large domestic banks, led by Bank Austria Creditanstalt (11.7 per cent), Erste Bank (9.4 per cent) and Raiffeisen (6.1 per cent) [5]. The exchange said in May 2007 that it had turned down takeover approaches from private equity groups[6].

Vienna expanded by buying the stock exchanges in Ljubljana and Prague in 2008 and Budapest in 2004, creating CEE Stock Exchange Group, with the aim of being the premier exchange serving Central and Eastern Europe (CEE). By 2012, however, its volume in terms of contracts traded, as well as IPO activity, had been surpassed in the region by the Warsaw Stock Exchange. In April 2013, the Vienna exchange was rumored to have initiated merger discussions with Warsaw. [7]

Structure and Regulation

The exchange offers venues for the trading of cash equities, structured products and bonds. The clearing and settlement of Austrian securities had been done by Oesterreichische Kontrollbank (OeKB). As of January 2005, CCP Austria, a company owned jointly by Wiener Börse AG and OeKB, started operations for the clearing and settlement of all cash market and derivatives trades.

As of 31 July 2017, a part of the cash market trading (equities and ETFs) of the Vienna Stock Exchange migrated to Xetra® T7. Since 28 January 2019, all bonds, certificates and warrants are tradable on Xetra® T7.

The exchange has 68 members, split evenly between domestic and overseas institutions.[8]

The legacy commodity exchange was revived in March 2002 with the introduction of electricity trading - with emissions trading following in June 2005 - and restructured as the EXAA.

Product Development

The cash market – which includes the benchmark ATX indexes, generated 77 per cent of revenues in 2006, with derivatives contributing 6.2 per cent. The equities segment includes a prime market for large-cap stocks and a mid-cap offering, while public sector and corporate bonds are also listed, alongside structured products such as exchange-traded funds.

The derivatives complex includes futures and options on the ATX and the ATX Five large-cap index, as well as single-stock futures and options on 21 companies. The exchange also lists a number of central European-focused indexes including: futures and options on the CECE Composite Index, CECExt Extended Index, CTX Czech Trade Index, HTX Hungarian Traded Index, PX Polish Traded Index, NTX New Europe Blue Chip Index, RTX Russian Traded Index and RDX Russian Depositary Index.

References

  1. CEESEG AG Holding. Wiener Boerse.
  2. Vienna Stock Exchange throws in towel on derivatives. Reuters.
  3. 2010 Annual Volume Survey. Futures Industry.org.
  4. Case Study: OM Financial Derivative Exchanges. Australian National University.
  5. Shareholders. Wiener Börse.
  6. Vienna turns down private equity offers. Financial Times.
  7. Vienna Bourse Seeks ‘Friendly’ Merger With Warsaw Exchange. Bloomberg.
  8. Trading and Clearing Participants in Trading in Securities on the Vienna Stock Exchange in its function as a Securities Exchange. Wiener Boerse.

Annual Report 2006. Wiener Borse.

External links

http://www.bse.hu/onlinesz/index_e.html

http://www.exaa.at/

Last modified on 12 August 2019, at 14:47