Market Relations and Dialogue

Pursuant to the CSR strategy, the key objectives of the GPW Group include the development of corporate culture and behaviours of capital and commodity market participants in Poland according to high standards of corporate governance and disclosure requirements. This goal is pursued through efforts made in partnership and dialogue with capital and commodity market stakeholders.

New documentation of the WIBID and WIBOR reference rates

Modification of WIBID and WIBOR reference rate regulations was an important project of the Warsaw Stock Exchange in the area of relations with market participants.

The publication of the new Reference Rate Documentation is an important step in the alignment of WIBID and WIBOR with European and global standards. We will continue these efforts by engaging the key stakeholders including NBP, PFSA, UOKiK and financial market institutions.

On 30 November 2017, the WIBID and WIBOR reference rate fixing organiser GPW Benchmark published the new Reference Rate Documentation effective as of 1 February 2018. The documents include the Code of Conduct of WIBID and WIBOR Fixing Participants and the WIBID and WIBOR Reference Rate Rules.

spiralThe Code of Conduct governs relations between GPW Benchmark and banks participating in reference rate fixings. It presents the policies, procedures and standards of conduct for banks recommended by GPW Benchmark in line with the requirements of the European benchmark reform.

The Reference Rate Rules define the rules for the calculation and publication of the reference rates, as well as the rules for users including credit institutions, issuers of securities and investment funds. The new Reference Rate Documentation replaced the legacy Rules of Fixing of WIBID and WIBOR Reference Rates. The modifications were required to bring WIBID and WIBOR with the requirements of Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds.

“GPW ambassador” programme

The first edition of the “GPW Ambassador” Programme opened in March 2016 and closed on 24 May 2017. The “GPW Ambassador” Programme was developed following consultations with banks and brokers in 2015. The Programme was implemented in 2016 after a review of feedback from the consultations. The Programme continued in H1 2017.

The “GPW Ambassador” Programme promotes the capital market among bank advisers and supports them in sharing knowledge about investing on GPW with their retail clients and other bank officers.

The “GPW Ambassador” Programme was addressed to a select group of bank advisors nominated in a recruitment process together with banks. The Programme had 53 participants from 11 banks (Bank Citi Handlowy, PKO Bank Polski, Bank Pekao, Getin Noble Bank, Bank Millennium, Bank Zachodni WBK, Raiffeisen Polbank, Bank BGŻ BNP Paribas, Alior Bank, mBank, ING Bank Śląski). The participants were bank advisors while the speakers were market practitioners who shared both theoretical knowledge and hands-on expertise.

GPW meetings for the GPW Ambassadors were held regularly in order to monitor the development of the Programme and respond to participants’ suggestions and comments. Thanks to frequent interactions with customers, the GPW Ambassadors provided regular feedback on the expectations of individual clients addressed to GPW. The meetings covered all issues concerning products traded on GPW as well as the issuance of shares and bonds.

The “GPW Ambassador” Programme was highly rated by the participants who appreciated the content of GPW’s programme dedicated to bank advisors in order to improve their understanding of the capital market.

MIFID2 Implementation

In 2017, regular project meetings were held with a broad group of market participants, including both the cash market and the commodity market, in order to prepare and implement regulations governing exchange trading in view of the implementation of:

  • Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (MiFID2);
  • Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments (MiFIR); and
  • their implementing regulations (MiFID2/MiFIR package).

Brokers’ ISVs were also invited to the meetings.

spiralAdditional consultations with market makers discussed modifications of the terms of market making after the MiFID2 implementation and new incentive programmes designed to improve liquidity on the GPW markets. Working meetings with the Chamber of Brokerage Houses (IDM), brokers and banks focused on GPW’s implementation of the distribution service of Key Information Documents for structured products and exchange-traded derivatives.

TGE conducted consultations with the market including a debate held in March 2017 on the MiFID2 requirements and their impact on the commodity and financial markets in Poland, as well as a number of meetings of the Gas Market Committee and the Energy Market Committee.

Consultation committees

In addition to irregular dialogue with the stakeholders concerning material business decisions, GPW is also engaged in on-going consultations with market participants within the Consultation Committees established in 2013. The Committees are advisory bodies active in the key areas of GPW’s operation. The Committees bring together representatives of the capital market community: investors, issuers, brokers, funds, academics, lawyers, as well as representatives of the Polish Financial Supervision Authority. Consultations with the Committees on the Exchange’s business decisions help to develop solutions optimal to all GPW stakeholder groups.

As at the end of 2017, GPW had the following Committees:

  • Alternative Trading System Development Committee - Board of Authorised Advisers
  • Strategy Committee
  • Compliance Committee
  • Corporate Governance Committee
  • Derivatives Market Committee
  • Debt Market Committee
  • Equity Market Committee
  • Exchange Indices Committee

Two other committees cover the commodity market:

  • Gas Market Committee – an advisory body since 2014 assisting the development of solutions creating a friendly environment for the development of trade in natural gas on the exchange. TGE continued consultations within the Gas Market Committee in 2017. The Committee held two meetings, each bringing together 20 participants.
  • Energy Market Committee – established in 2015, it brings together exchange members and representatives of TGE and IRGiT. Its responsibilities include giving opinions and tabling proposals for the development of exchange-traded commodities listed on TGE. The Committee held two consultation meetings in 2017, each bringing together 60 participants.