Bourse tickles foreign brokers' fancy
Indeed, just over a month into the country's EU experience, as many as ten foreign players are already hot-footing it to the Warsaw floor.
However, while the notion of any new onslaught might put the wind up some, Maria Dobrowolska, president of the Chamber of Brokerage Houses (IDM), says that local brokers are well prepared for the competition, as, she explains, they've been anticipating an influx of newcomers in the wake of Poland's accession for some time.
Piotr Szteliga, deputy president of the Warsaw Stock Exchange (WSE), confirms that the bourse is in negotiations with foreign entities that would like to act as intermediaries on the market. However, according to Marek Szuszkiewicz, director of the brokerage houses division at the Securities and Exchange Commission (KPWiG), none of the ten foreign firms that have expressed an interest intend to open a branch in this country.
Under the EU's 'single passport' policy, as long as the financial firms in question are regulated by an appropriate institution in their country of origin, they do not require a permit from the KPWiG to start operations here. Indeed, any such firm is free to start business in Poland the day they receive the necessary information on the conditions of brokering in this country, which the KPWiG must issue within two months following a company's request.
But now, while the market is already crowded with 21 brokerage houses vying for business from WSE investors, brokers here seem confident that no major upheaval is likely.
Marek Słomski, chief executive officer at ING Securities, for one, believes there will be no seismic change. Given that investors are already charged so little for brokering services here, it will be nearly impossible for the newcomers to attempt to undercut on price, he adds.
Existing competition is particularly fierce among intermediaries involved in trading equities. Indeed, in May, nine of the brokers operating each controlled more than five percent of the market, with the combined market share of these leaders in excess of 80 percent. Since the beginning of the year, DM Citybank Handlowy has led the way, with more than 16 percent of trade.
Most of the firms in the field, and the larger ones in particular, are confident that their local expertise will afford them powerful leverage over any foreign entities, at least in the short to medium term. Moreover, some brokers say that they will not sit idly by and wait for competitors to take advantage of the new rules that EU membership has thrust upon the bourse.
Mariusz Sadłocha, chief executive at DM BZ WBK brokerage, reveals that the firm is already in talks with the London and Vienna exchanges with regard to taking advantage of the common market rules. And what is more, he does not rule out the possibility that the company will take steps to enter those markets in the coming months.
However, while the notion of any new onslaught might put the wind up some, Maria Dobrowolska, president of the Chamber of Brokerage Houses (IDM), says that local brokers are well prepared for the competition, as, she explains, they've been anticipating an influx of newcomers in the wake of Poland's accession for some time.
Piotr Szteliga, deputy president of the Warsaw Stock Exchange (WSE), confirms that the bourse is in negotiations with foreign entities that would like to act as intermediaries on the market. However, according to Marek Szuszkiewicz, director of the brokerage houses division at the Securities and Exchange Commission (KPWiG), none of the ten foreign firms that have expressed an interest intend to open a branch in this country.
Under the EU's 'single passport' policy, as long as the financial firms in question are regulated by an appropriate institution in their country of origin, they do not require a permit from the KPWiG to start operations here. Indeed, any such firm is free to start business in Poland the day they receive the necessary information on the conditions of brokering in this country, which the KPWiG must issue within two months following a company's request.
But now, while the market is already crowded with 21 brokerage houses vying for business from WSE investors, brokers here seem confident that no major upheaval is likely.
Marek Słomski, chief executive officer at ING Securities, for one, believes there will be no seismic change. Given that investors are already charged so little for brokering services here, it will be nearly impossible for the newcomers to attempt to undercut on price, he adds.
Existing competition is particularly fierce among intermediaries involved in trading equities. Indeed, in May, nine of the brokers operating each controlled more than five percent of the market, with the combined market share of these leaders in excess of 80 percent. Since the beginning of the year, DM Citybank Handlowy has led the way, with more than 16 percent of trade.
Most of the firms in the field, and the larger ones in particular, are confident that their local expertise will afford them powerful leverage over any foreign entities, at least in the short to medium term. Moreover, some brokers say that they will not sit idly by and wait for competitors to take advantage of the new rules that EU membership has thrust upon the bourse.
Mariusz Sadłocha, chief executive at DM BZ WBK brokerage, reveals that the firm is already in talks with the London and Vienna exchanges with regard to taking advantage of the common market rules. And what is more, he does not rule out the possibility that the company will take steps to enter those markets in the coming months.
