Prague Stock Exchange
Encyclopedia
The Prague Stock Exchange or PSE ( or ) is the Czech Republic
's main securities market and currently (as of September 2005) the second biggest stock exchange
in Central
and Eastern Europe
. Although Prague
's first exchange opened in 1861, the present-day PSE was established on November 24, 1992, and trading started on April 6, 1993.
The Exchange is based on a membership principle that means only licenced securities traders who are Exchange members have access to the Exchange trading system. Through its members, the Exchange organizes the supply of and demand for listed securities, investment instruments, and other capital market instruments allowed by the Securities Commission.
All activities of the Exchange and its members are under the regulation and surveillance of the Securities Commission. The security and reliability of Exchange trading is provided for by an internal legislative framework (Exchange rules) which are fully harmonised with EU
standards. The settlement of trades concluded on the Exchange is ensured by the Exchange subsidiary Central Securities Depository Prague. Trading is secured by the Exchange Guarantee Fund.
The Exchange offers its clients two basic trading systems:
The Exchange trades (SPAD - open phase) from 09:15am to 04:20pm, Monday to Friday; it is closed on Saturdays, Sundays, and holidays declared by the Exchange in advance.
Exchange markets:
was reported to be interested in purchasing a majority stake in the Prague Stock Exchange. The estimated value of the transaction would have been 100 million euros, this would have made the Warsaw Stock Exchange the strongest in the region.
At the end of October 2008, the Prague and Vienna
exchanges announced that negotiations were being finalized for the Vienna Stock Exchange to become a majority stakeholder. Prague Stock Exchange became a member of CEE Stock Exchange Group
(CEESEG
). The sale value of the PSE has been estimated between CZK 5 billion and 10 billion.
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
's main securities market and currently (as of September 2005) the second biggest stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
in Central
Central Europe
Central Europe or alternatively Middle Europe is a region of the European continent lying between the variously defined areas of Eastern and Western Europe...
and Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
. Although Prague
Prague
Prague is the capital and largest city of the Czech Republic. Situated in the north-west of the country on the Vltava river, the city is home to about 1.3 million people, while its metropolitan area is estimated to have a population of over 2.3 million...
's first exchange opened in 1861, the present-day PSE was established on November 24, 1992, and trading started on April 6, 1993.
The Exchange is based on a membership principle that means only licenced securities traders who are Exchange members have access to the Exchange trading system. Through its members, the Exchange organizes the supply of and demand for listed securities, investment instruments, and other capital market instruments allowed by the Securities Commission.
All activities of the Exchange and its members are under the regulation and surveillance of the Securities Commission. The security and reliability of Exchange trading is provided for by an internal legislative framework (Exchange rules) which are fully harmonised with EU
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
standards. The settlement of trades concluded on the Exchange is ensured by the Exchange subsidiary Central Securities Depository Prague. Trading is secured by the Exchange Guarantee Fund.
The Exchange offers its clients two basic trading systems:
- Trading system SPAD for large and medium investors;
- Trading modules auction and continual for small investors.
The Exchange trades (SPAD - open phase) from 09:15am to 04:20pm, Monday to Friday; it is closed on Saturdays, Sundays, and holidays declared by the Exchange in advance.
Trading
Trading is based on automated processing of instructions to buy and sell investment instruments, meaning that the Prague Exchange is a so-called electronic exchange. Trading at the Exchange is allowed only through its members.Exchange markets:
- Shares
- Investment certificates
- Bonds
- Futures
- Warrants
Ownership
In September 2008, the Warsaw Stock ExchangeWarsaw Stock Exchange
The Warsaw Stock Exchange , , is a stock exchange located in Warsaw, Poland. It has a capitalization of € 220 bln .The WSE is a member of the World Federation of Exchanges and the Federation of European Securities Exchanges.-History:...
was reported to be interested in purchasing a majority stake in the Prague Stock Exchange. The estimated value of the transaction would have been 100 million euros, this would have made the Warsaw Stock Exchange the strongest in the region.
At the end of October 2008, the Prague and Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
exchanges announced that negotiations were being finalized for the Vienna Stock Exchange to become a majority stakeholder. Prague Stock Exchange became a member of CEE Stock Exchange Group
CEE Stock Exchange Group
The CEE Stock Exchange Group is a holding company comprising the stock exchanges of Vienna, Budapest, Ljubljana and Prague. The abbreviation CEE stands for Central and Eastern Europe...
(CEESEG
CEE Stock Exchange Group
The CEE Stock Exchange Group is a holding company comprising the stock exchanges of Vienna, Budapest, Ljubljana and Prague. The abbreviation CEE stands for Central and Eastern Europe...
). The sale value of the PSE has been estimated between CZK 5 billion and 10 billion.
External links
- Prague Stock Exchange website (en)
- Quotes on the Prague Stock Exchange (en) history & real time