Vienna Stock Exchange

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Vienna Stock Exchange (Wiener Börse)
Wienerb.jpg
Founded 1771
Headquarters Vienna, Austria
Key People Michael Buhl and Heinrich Schaller, joint CEOs; Rudolf Gruber, supervisory board chairman
Products Cash equities, bonds and structured products and futures and options on
Website en.wienerborse.at/

The Vienna Stock Exchange (Wiener Börse) is a multi-asset class electronic platform formed from the 1997 merger of the country’s cash market and derivatives exchange, offering trading, clearing and settlement of equities, bonds, and futures and options. It is the only securities exchange in Austria.[1] [2] The privately-owned Wiener Börse holding company has been positioned as a trading hub for central and eastern Europe, and has an equity stake in the Budapest Stock Exchange and co-operation agreements with eight other regional exchanges.

The Vienna Stock Exchange ranked number 50 in 2009 in the Futures Industry Association's global list of top 53 derivatives exchanges measured by volume, down 32.1% on 2008's volume figure.[3] The FIA list, published in early April 2010, reports that total volume for 2009 fell to 766,628 from 2008's figure of 1.13 million.

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]. In May 2004, Wiener Börse acquired a 14 per cent stake (current stake is 12.5 per cent) in the Budapest Stock Exchange as part of an Austrian consortium of bidders.

Structure and Regulation

The exchange offers venues for the trading of cash equities, futures and options, 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.

The Xetra platform is used for cash equities, with OMex used for derivatives. Trading hours are 09.00am-5.30pm. The exchange has 78 members, split evenly between domestic and overseas institutions

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 IndexCite error: Closing </ref> missing for <ref> tag But the VSE also boosted its overall value by expanding further into the region, sometimes at the expense of the WSE, by taking new or controlling stakes in the Ljubljana Stock Exchange, Budapest Stock Exchange and Prague Stock Exchange. The VSE is also reportedly considering taking stakes in the Zagreb Stock Exchange, Belgrade Stock Exchange and Bucharest Stock Exchange.

References

  1. Volume Growth Accelerates. Futures Industry magazine.
  2. Wiener Börse: Mission Statement. Wiener Börse.
  3. 2009 Annual Volume Survey. FIA magazine.
  4. Case Study: OM Financial Derivative Exchanges. Australian National University.
  5. Shareholders. Wiener Börse.
  6. Vienna turns down private equity offers. Financial Times.

Annual Report 2006. Wiener Borse.

External links

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

http://www.exaa.at/