Brokers ask govt to intervene to postpone introduction of new trading system
Five Hungarian investment service providers who together generate nearly half of the turnover on the Budapest Stock Exchange have asked the financial market regulator PSZAF, the National Bank of Hungary and the government to intervene to postpone the introduction of a new trading system on the bourse until the end of 2011.
Shareholders of the BSE are expected to approve the introduction of the XETRA trading system at a general meeting on Tuesday.
The investment service providers -- brokerages Buda-Cash, Concorde, Equilor and Erste, as well as ING Bank's Hungarian branch -- said they would be forced to use both the new trading system and the old one at the same time, resulting in extra costs. The new system would also give foreign brokers unhindered access to the Hungarian market, putting domestic brokers at a disadvantage they added.
The investment service providers also noted that the ongoing merger between Deutsche Borse and the NYSE-EURONEXT could require the BSE to adopt another new trading system as soon as the end of 2013.
The Deutsche Borse uses the XETRA system at present, but the EURONEXT platform is likely to be adopted when the merger is completed, managing director of ING Bank's Hungarian branch Zsolt Katona explained. It would be best to hold off on the introduction of the XETRA system until the Deutsche Borse NYSE-EURONEXT merger is completed, he added.
The BSE is majority owned be Wiener Borse.
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