The Budapest Stock Exchange was placed into a holding company together with bourses in Ljubljana, Prague and Vienna on January 14, the Vienna Bourse, a stakeholder in the BSE and its regional peers, said.
The holding company, called CEESEG, is responsible for strategic and financial management and the administration of the investments, while the four subsidiaries are responsible for business operations.
Michael Buhl and Heinrich Schaller, who currently sit on the management board for the Vienna Stock Exchange, will preside over CEESEG.
An advisory body will be set up by CEESEG to include the CEOs of the bourses in Budapest, Ljubljana and Prague. The main tasks of the advisory body will include the development of the group strategy and the coordination and implementation of numerous integration projects.
“With the reorganization, the stock exchange group will be given a structure that matches its new size and that will enable it to better meet the requirements of our internationalization strategy,” said Schaller,
“The CEESEG has the potential to expand; over the medium to long term so we are generally open for new members. We are interested in all stock exchanges in the region, but currently are not engaged in any specific talks,” Buhl said.
“Our primary strategic goal is to increase liquidity on the local markets and in the entire region, as well as to simplify market access for international trading participants,” the Vienna Bourse said.
All four exchanges will be connected to the XETRA trading system, the bourse said. Another aim is to “draw more international attention to the stock exchanges of CEESEG by bundling, for example, international data dissemination and international index licensing, and participating in joint road shows of the four markets,” it added.
Currently, CEESEG accounts for around half of total market capitalization and some two-thirds of all equity trading volumes in Central and Eastern Europe, making it the largest stock exchange group in the region. A total of 264 companies are listed, with more than 170 regional and international banks and investment service providers trading on the four exchanges and a total of 152 data vendors, which ensure the worldwide publication of the data. In 2009, the group index CEESEG rose by 37.8%, and the CEETX, which comprises the 25 largest companies listed on these stock exchanges, climbed 39.9%. (MTI – Econews)