Shareholders of the Budapest Stock Exchange approved a proposal to pay a HUF 205-per-share dividend on 2011 profit at an annual general meeting on Wednesday.
The dividend fund comes to HUF 1.125 billion, almost 99% of the bourse's after-tax profit.
Last year, the exchange paid shareholders a HUF 240-per-share-dividend, also nearly all of 2010 profits.
Shareholders approve the replacement of the MMTS I trading system with Xetra and the introduction of the market making system.
"Through connecting to the Xetra network the Hungarian market will be more accessible for the international investors while the new market maker model will help creating additional liquidity and will enhance the quality of the market," the bourse said in a statement published its website.
BSE Vice chairman Bálint Szécsényi called the decision "one of the most important milestones" of the bourse's 22-year history.
"It is not only about the replacement of the trading system, but also the change of the trading model by introducing a market maker model that is new in the Hungarian securities market. We believe that it will enhance the quality of the market and bring the Hungarian capital market to a higher development level," he said.
The system replacement will change the IT infrastructure of the market but it will not have any effects on the market setup in terms of regulatory environment, the legal status of BSE and the post-trading infrastructure.
The new market making system will be implemented for the equity transactions while the certificates and fund shares market will remain out of scope.
"The aim of the market making system is to ensure continuous liquidity for listed instruments that can be the basis of a future turnover increase and enhance the price transparency of the market," the bourse said.
The basic pillar of the new market making system is that designated market makers will be responsible to provide sufficient liquidity in the order book for the equities in which the market participant will act as market maker.
The new market making system is expected to increase liquidity and trading volumes by bringing additional order flow to the market as well as lowering transaction costs for investors by narrowing the bid-ask spreads. It is also expected to boost investor confidence, smoothing out the volatility of the trading turnover and decreasing the turnover concentration by enhancing the liquidity of less actively traded instruments, the BSE said.