Spring cleaning

Changes made to WSE regulations are starting to come into effect this week, beginning with alterations to the structure of the stock index. Starting March 19, companies from both the primary and parallel markets will enter one of the WSE's WIG indices, provided they meet two requirements: first, the value of a firm's free-floating shares must be higher than E1 (zł.3.89) million; and second, more than 10 percent of its total number of shares must be free-floating.

Of the WSE's indices, the WIG20 will remain an index of the 20 biggest firms. The mWIG40, consisting of 40 medium-sized companies, will replace the old MidWIG. The sWIG80 will be devoted to the 80 small companies currently listed on the WIRR.

From April 1, securities of all companies in the primary market will be classified according to the value of their capital. The 5 PLUS sector will include securities of firms whose capital is lower than E50 (zł.195) million. Firms with capital between E50-250 (zł.195-974) million will be listed in the 50 PLUS segment. The 250 PLUS classification will comprise companies with capital greater than E250 (zł.974) million.

All transaction fees will be reduced from the beginning of April. Fees for stock- and block-trade transactions - as well as for shares, futures and index fees - will be cut by an average of 15 percent. Fees on bond futures will be 20 percent cheaper and options fees will be 16 percent cheaper, on average.

"We are now a more affordable exchange market than Vienna and Prague in terms of transaction fees," declared Ludwik Sobolewski, WSE board president.

In addition, the WSE has just signed an agreement with Kazakhstan which aims to promote the bourse among Kazakhstani companies. The agreement also concerns the construction of a financial center in the region.