The exchange is thought to want to upgrade to a platform
capable of handling specialist derivatives trades, including
NYSE Technologies won the project over Nasdaq OMX and
Millennium IT, the software vendor bought for £18m by the
London Stock Exchange Group last year to build its own trading
This will be the WSE’s first link-up with a
multinational exchange group ahead of its planned privatisation
in November. But although NYSE was one of the four exchange
groups that considered buying WSE last year, this IT deal is
just a soft partnership – NYSE is not investing in the
WSE at this stage.
The WSE has also won its long-fought battle with Polish
regulators to allow the short selling of stocks.
"Short selling will be allowed [from July 1], with many
safeguards created by WSE and the National Depository for
Securities during the extensive discussions with the Financial
Supervision Authority," said Jaroslaw Ziebiec, director of the
bourse’s financial instruments development
department, in June.
"Primarily, short selling needs to be flagged –
that’s the most important feature. WSE will also
have the possibility to suspend short selling in the event of a
significant decrease in the value of the WIG index or the price
of individual shares."
The bourse has been in discussion with the PFSA for much of
the past six months on relaxing Poland’s
restrictive rules on shorting.
Ziebiec suggested that, once the short selling hurdle was
cleared, the exchange would enjoy a boost in liquidity and be
in a good position to begin offering new products.