The Prague Stock Exchange (PSE) and the Warsaw Stock Exchange (GPW) organized the first ever Summit of exchanges from CEE region in V4+2 format hosted in Prague on 20 February 2018. CEOs from the exchanges in the Czech Republic, Poland, Hungary and Slovakia plus two exchanges in Romania and Croatia took part.
The reason for such meeting is to establish cooperation among these exchanges mainly with respect to new regulatory requirements both implemented and proposed by EU which is a hugely relevant issue for all EU capital markets. The main focus of the group is to compare impacts of these changes on capital markets from V4 + 2 region and to identify potentially problematic topics and communicate them with EU representatives. Common approach is beneficial not only because there is a need for CEE exchanges’ voice to be heard in European debate but also because it enables EU to receive a comprehensive feedback from markets representing the whole region.
EU capital markets face many challenges such as Capital Market Union implementation or Brexit effects. Exchanges’ representatives agreed that development of a standardized pan-European marketplace is at utmost importance, however, for V4+2 countries it is equally important to focus on development of local and regional markets’ ecosystems.
“Our aim is also to jointly represent our markets to investors as an interesting investment opportunity within EU. We want to intensify our communication with investors as a region because that’s the way how institutional investors from overseas perceive our markets. Common approach might be therefore beneficial not only for us but also for investors,” says Petr Koblic, CEO of the Prague Stock Exchange.
“We need to develop new ways to attract global investors to Central and Eastern Europe and we are ready to share our experience and solutions with the region’s exchanges in order to promote investment opportunities available in the region. Cooperation between capital markets in CEE is crucial to the future development of our exchanges as well as national economies. Meetings like this can help to develop common proposals which could make a bigger impact if they come from a group,” says Marek Dietl, President of the Warsaw Stock Exchange.
On their first meeting in Prague, stock exchanges’ representatives dedicated their time mainly to draw the scope of topics which are important for smooth operation of regional capital markets. These topics were, among others, MiFID II regulations and their impact on small capital markets, initiative of Capital Market Union, possible cooperation in creation of regional indices and investment instruments derived from these indices, as well as perspectives for joint promotion of the region.