Warsaw Stock Exchange (GPW), the biggest securities exchange in Central and Eastern Europe announced today NewConnect 2.0, which is the new opening of the GPW’s alternative securities market to ensure that it continues to play a key role in financing of small and medium-sized enterprises. The goal of the Management Board of GPW is to restore confidence in NewConnect and to make the market attractive to diverse investor groups. The exchange could be a welcome IPO to large retail FX brokerages who are looking for an alternative and access to 1st class market place, with Poland’s economy humming along nicely and unaffected by any Euro turbulence. NewConnect offers lower costs for floated companies, and a simplified entrance criteria along with limited reporting requirements. The exchange is conducted outside the regulated market as an multilateral trading facility.
The main pillars of NewConnect 2.0 include the appointment of the Board of Authorised Advisers. It is composed of 12 members, including nine Authorised Advisers. The responsibilities of the Board include putting forth proposed directions of development of the ATS, defining guidelines for the activity of Authorised Advisers, taking steps improving the quality of services of Authorised Advisers, and issuing opinions on amendments to laws and regulations concerning the organisation of the ATS. The Board of Authorised Advisers will function as an advisory committee to GPW.
“Today we announce a new opening of NewConnect which has been thoroughly reformed since 2012 to improve the safety of trading and the quality of listed companies. Later this year we are planning to take further steps in order to improve confidence in the market and to activate investors and issuers. We are planning, among others, a revision of the Best Practice of Authorised Advisers, a new market segmentation, improved transparency and availability of information about issuers and Authorised Advisers, and promotion of NewConnect among issuers and investors. We are also planning to strictly enforce compliance with the ATS Rules,” said Paweł Tamborski, President of the Warsaw Stock Exchange.
“We want Authorised Advisors, who are responsible for reviewing prospective issuers on NewConnect as reliable business operators, to assume more responsibility for the market. Confidence in the market can be restored if all market participants are committed to it,” said Paweł Tamborski.
The Exchange has published the “NewConnect Market Report” which summarises nearly seven years of its operation. According to the Report, NewConnect lists many promising and good quality companies for which the market has become a well-tailored solution.
Today NewConnect lists 432 companies (including 11 foreign companies) whose total capitalisation is around PLN 9.6 billion. NewConnect remains one of the fastest growing alternative markets in Europe by the number of IPOs.
NewConnect provides with the opportunity to co-finance innovative companies and share in the rewards of their rapid growth. Trading is organised and regulated by the Warsaw Stock Exchange which has spared no effort to ensure that NewConnect is a highly transparent market with the security of trading which is normally expected in public markets.
For more information on NewConnect 2.0, click here.