Trading

The revenues of the Group from transactions on the financial market in the year ended December 31, 2012 were PLN 150.1 million, a decrease of 25.8% (PLN 52.1 million) compared to PLN 202.2 million in 2011. The share of trading revenues in the total revenues on the financial market was 72.1% in 2012, which was 5 percentage points less than in 2011. The biggest share in trading revenues is that of revenues from the Main Market, which amounted to PLN 126.6 million in 2012 (a decrease of PLN 54.6 million year on year). The remaining share in the revenues is that of Treasury BondSpot Poland, NewConnect and Catalyst.

Quarterly trading revenues on the financial market amounted to PLN 35.5 million in Q4 2012; they were stable compared to Q3 2012 (revenues of PLN 35.8 million) and decreased by 18.8% (PLN 8.2 million) compared to Q4 2011. The decrease in revenues compared to 2011 was driven mainly by lower revenues from transactions on the equities market and the derivatives market.

Equities and equity-related instruments

Revenues from trading in equities and equity-related instruments amounted to PLN 101.2 million in 2012, a decrease of 29.3% (PLN 41.9 million) year on year. The significant decrease in revenues was driven directly by the decrease in turnover on the Main Market and NewConnect as well as lower revenues from tender offers for significant blocks of shares (PLN 2.9 million in 2012 compared to PLN 8.3 million in 2011).

The Group’s revenues from transactions in equities and equity-related instruments are calculated on the basis of the value of trading and the number of executed orders. The WIG20 index increased by 20.4% in 2012 and stood at 2,582.98 points at the end of the year, compared to 2,144.48 points as at December 31, 2011.  Despite WIG20 increase in 2012, the average value of WIG20 in 2012 was lower at 2,289.26 points compared to 2,573.30 points in 2011 (WIG20 stood at 2,744.17 points as at end of 2010) Although the total volume of trading in equities on the Main Market in 2012 increased by 7.4% compared to 2011, the total value of trading in equities on that market decreased by 24.3% from PLN 268.1 billion in 2011 to PLN 202.9 billion in 2012. Furthermore, the number of session transactions on the Main Market decreased from 13.9 million in 2011 to 11.5 million in 2012.

The value of trading in equities on NewConnect (session and block trades) stood at PLN 1.3 billion in 2012, a decrease of 33.3% compared to 2011.

WSE introduced an anti-crisis promotion for exchange members in November 2011. The value of the promotion was PLN 5.8 million in 2012.

Quarterly revenues from transactions in equities and equity-related instruments amounted to PLN 24.6 million in Q4 2012, an increase of 3.6% (PLN 0.9 million) compared to Q3 2012 and a decrease of 15.3% (PLN 4.4 million) compared to Q4 2011.

These revenues in the quarters under review were impacted by the following factors:

  • an increase of the value of session trading in equities on the Main Market in Q4 2012 by 0.5% compared to Q3 2012 and a decrease of the value of trading by 17.8% compared to Q4 2011,
  • an increase in the number of smaller transactions in equities on the Main Market – the average value of a transaction on the Main Market (the total value of session trading to the number of session transactions) was PLN 16.4 thousand in Q4 2012, which was less than in Q3 2012 (PLN 17.4 thousand) and less than in Q4 2011 (PLN 16.9 thousand),
  • an increase in the number of session transactions by 7.7% in Q4 2012 compared to Q3 2012 and a decrease by 15.2% compared to Q4 2011,
  • an anti-crisis promotion introduced by WSE in November 2011; the total value of the promotion granted to exchange members was PLN 1.8 million in Q4 2012 compared to PLN 1.1 million in Q3 2012 and PLN 0.8 million in Q4 2011.

Consolidated revenues of WSE Group from trading in shares and equity-related instruments, the value and volume of trading in shares and equity-related instruments in 2011-2012 and in selected quarters of 2011-2012

  For the three-month
period ended
Year ended December 31,
  December
31, 2012
September
30, 2012
December
31, 2011
2012 2011
Financial market. trading revenue: shares and
equity-related instruments (PLN million)
24.6 23.7 29.0 101.2 143.1
Main Market:          
Value of trading (PLN billion) 47.8 52.5 57.7 202.9 268.1
Volume of trading (billions of shares) 8.6 7.1 10.0 33.8 31.5
NewConnect:          
Value of trading (PLN billion) 0.3 0.2 0.3 1.3 2.0
Volume of trading (billions of shares) 0.9 0.6 1.3 3.6 6.4
Source: Company

The WIG20 index increased by 8.9% from 2,371.42 points at the end of Q3 2012 to 2,582.98 points at the end of Q4 2012. The value of trading in equities on the Main Market was PLN 47.8 billion in Q4 2012 compared to PLN 52.5 billion in Q3 2012 and PLN 57.7 billion in Q4 2011. The total volume of trading in equities on the Main Market was 8.6 billion shares in Q4 2012 compared to 7.1 billion shares in Q3 2012 and 10.0 billion shares in Q4 2011.

Derivatives

Revenues of the Group from transactions in derivatives on the financial market amounted to PLN 26.9 million in 2012, a decrease of 33.0% (PLN 13.3 million) compared to 2011. The decrease in revenues was driven mainly by a decrease of 27.1% in the volume of trading in all derivatives contracts, especially affecting WIG20 futures (down by 33.5%).

Revenues from transactions in derivatives amounted to PLN 5.7 million in Q4 2012, a decrease of 9.1% compared to Q3 2012 and a decrease of 41.0% compared to Q4 2011. The results were driven by a decrease in the volume of WIG20 futures contracts, which was 9.0% lower in Q4 2012 than in Q3 2012 and 41.9% lower than in Q4 2011.

The decrease in trading in stock index futures contracts has been observed on most European exchanges which operate futures markets, including the biggest European trade operators. According to the Federation of European Stock Exchanges (FESE), the volume of trading in stock index futures in Europe decreased by 19.8% in 2012. The volatility of the WIG20 index was low in Q4 2012. The number of transactions made by investors on the derivative instruments market is usually lower in periods of low volatility than at times when the volatility of the underlying is bigger. This trend is particularly pronounced in case of futures contracts.

The revenue from WIG20 futures contracts accounted for more than 94% of the Company’s revenues from transactions in derivative financial instruments in each quarter of 2011 and 2012.

Consolidated revenues of WSE Group from trading in derivatives, the volume of trading in derivatives in 2011-2012 and in selected quarters of 2011-2012

  For the three-month period ended Year ended December 31,
  December 31, 2012 September 30, 2012 December 31, 2011 2012 2011
Trading revenue - derivatives (PLN million) 5.7 6.3 9.7 26.9 40.2
Volume of trading in derivatives (million) 2.6 2.7 3.7 11.3 15.6
including: Volume of trading in WIG20 futures (million contracts) 1.9 2.1 3.3 9.1 13.6
Source: Company

WSE changed the standard specification of currency futures (US$, EUR, CHF and GBP) as of May 2012. The change consisted in the reduction of the trading unit (contract size) from 10,000 currency units to 1,000 currency units. The change was aimed to improve the liquidity of currency futures and to further grow trade in these derivatives.

Other fees paid by market participants

Revenues of the Group from other fees paid by market participants were PLN 6.9 million in 2012, an increase of PLN 1.8 million compared to PLN 5.1 million in 2011. The higher revenues were largely driven by an increase of fees charged from exchange members as a result of a higher cost of software maintenance services.

Quarterly revenues from other fees amounted to ca. PLN 1.7 million both in Q4 and Q3 2012 compared to PLN 1.5 million in Q4 2011.

Debt instruments

Revenues of the Group from transactions in debt instruments increased by 11.2% (PLN 1.5 million) in 2012 compared to 2011 and reached PLN 15.0 million, which was driven mainly by an increase in the value of cash transactions on TBSP by 46.7% from PLN 306.5 billion in 2011 to PLN 449.6 billion in 2012. The value of conditional transactions on TBSP was PLN 612.1 billion in 2012, a decrease of 16.3% compared to PLN 730.9 billion in 2011.

Revenues of the Group in the debt instruments sub-segment stood at PLN 3.5 million in Q4 2012, a decrease of 15.7% (PLN 0.6 million) compared to Q3 2012 and a level similar to Q4 2011. Trading on Treasury BondSpot Poland in Q3 2012 was high owing to record-breaking activity of market participants. The value of trading on TBSP in 2012 was driven by a reduction of fees for market makers holding the status of Treasury Securities Dealer or Candidate. The value of trading on Catalyst amounted to PLN 0.7 billion in Q4 2012, PLN 0.5 billion in Q3 2012 and PLN 1.4 billion in Q4 2011. Revenues from the Catalyst market have a small share in total revenues from transactions in debt instruments.

Consolidated revenues of WSE Group from trading in fixed-income instruments, the value of trading in fixed-income instruments in 2011-2012 and in selected quarters of 2011-2012

  For the three-month period ended Year ended December 31,
  December 31, 2012 September 30, 2012 December 31, 2011 2012 2011
Financial market. trading revenue: fixed-income instruments (PLN million) 3.5 4.1 3.4 15.0 13.5
Catalyst:          
Value of trading (PLN billion) 0.7 0.5 1.4 3.0 2.5
incl.: Value of trading in non-Treasury instruments
(PLN billion)
0.5 0.3 1.2 2.5 1.7
Treasury BondSpot Poland:          
Value of trading - conditional transactions
(PLN billion)
161.4 159.4 130.7 612.1 730.9
Value of trading - cash transactions
(PLN billion)
91.8 136.5 84.1 449.6 306.5
Source: Company

Other cash market instruments

Revenues from transactions in other cash market instruments amounted to PLN 0.17 million in 2012, a decrease of 43.9% compared to 2011. Revenues from other cash market instruments amounted to ca. PLN 0.03 million both in Q3 and Q4 2012, which was nearly one-half of the revenues in Q4 2011.

Listing

Listing revenues of the Group on the financial market amounted to PLN 21.5 million in 2012, a decrease of 7.9% (PLN 1.8 million) compared to PLN 23.4 million in 2011.

The Main Market is the principal source of listing revenues. Listing revenues in 2012 amounted to PLN 17.7 million on the Main Market, PLN 3.1 million on NewConnect, and PLN 0.7 million on Catalyst.

Revenues from listing fees amounted to PLN 16.5 million in 2012, a modest decrease (by 1.4%) year on year. Fees for introduction and admission as well as other fees amounted to PLN 5.0 million in 2012, a decrease of 24.3% (PLN 1.6 million) compared to PLN 6.6 million in 2011. The decrease in revenues in 2012 compared to 2011 was driven mainly by a decrease in the number of new listings on the Main Market (19 less new listings) and on NewConnect (83 less new listings) as well as a decrease in the value of initial public offerings (IPOs) and secondary public offerings (SPOs) by 40.1% in aggregate on both markets.

Quarterly listing revenues amounted to PLN 5.5 million in Q4 2012, an increase of 6.2% (PLN 0.3 million) compared to Q3 2012 and a modest increase compared to Q4 2011. The increase of revenues in Q4 2012 compared to Q3 2012 was driven by a higher number of new listings and a higher value of offerings on the Main Market, which is reflected in higher revenues from fees for introduction and admission to trading.

Revenues from listing fees were ca. PLN 4.1 million in both Q4 and Q3 3012, a decrease of 3.7% compared to PLN 4.3 million in Q4 2011. Revenues from fees for admission and introduction and other fees amounted to PLN 1.4 million in Q4 2012, an increase of 25.6% compared to the revenues in Q3 2012 and an increase of 8.9% compared to the revenues in Q4 2011.

19 companies were newly listed on the Main Market in 2012, 19 less than in 2011. The total value of IPOs and SPOs was PLN 7.3 billion in 2012 compared to PLN 12.0 billion in 2011. The aggregate capitalization of domestic and foreign companies was PLN 734.1 billion at the end of 2012 compared to PLN 642.9 billion at the end of 2011 (an increase of 14.2%).

7 companies were newly listed on the Main Market and the total value of IPOs and SPOs was PLN 3.5 billion in Q4 2012, compared to 2 new listings worth PLN 1.5 billion in Q3 2012 and 5 new listings worth PLN 0.9 billion in Q4 2011. There were 438 companies listed on the Main Market and their total capitalization was PLN 734.1 billion at the end of Q4 2012, compared to 435 companies worth PLN 693.1 billion at the end of Q3 2012 and 426 companies worth PLN 642.9 billion at the end of Q4 2011. The value of SPOs was PLN 0.6 billion in Q4 2012, a decrease of PLN 0.9 billion compared to Q3 2012 (the biggest offers in Q3 were those of BZ WBK and GTC). The value of IPOs was PLN 2.9 billion in Q4 2012 (including the public offering of Alior Bank S.A. worth PLN 2.1 billion), which was the highest quarterly IPO value since Q3 2011.

Consolidated listing revenue of WSE Group, market capitalisation, number of listed companies, number and capitalisation of new listings, number and value of de-listings on the Main Market in 2011-2012 and in selected quarters of 2011-2012

  For the three-month period ended Year ended December 31,
  December 31, 2012 September 30, 2012 December 31, 2011 2012 2011
Main Market          
Listing revenue (PLN million) 4.6 4.3 4.7 17.7 20.5
Capitalisation of listed companies (domestic) (PLN billion) 523.4 484.0 446.2 523.4 446.2
Capitalisation of listed companies (foreign) (PLN billion) 210.7 209.1 196.7 210.7 196.7
Number of listed companies (domestic) 395 394 387 395 387
Number of listed companies (foreign) 43 41 39 43 39
Value of offerings (IPO and SPO)
(PLN billion)
3.5 1.5 0.9 7.3 12.0
Number of newly listed companies
(in the period)
7 2 5 19 38
Capitalisation of newly listed companies (PLN billion) 6.5 0.5 0.2 12.0 25.1
Number of de-listings 4 1 3 7 12
Capitalisation of de-listed companies* (PLN billion) 1.9 3.6 1.1 9.2 3.2
Source: Company * based on market capitalisation at the time of de-listing

89 companies were newly listed on NewConnect in 2012, compared to 172 new listings in 2011. The aggregate capitalization of domestic and foreign companies listed on NewConnect was PLN 11.1 billion at the end of 2012 compared to PLN 8.5 billion at the end of 2011 (an increase of 30.6%).

16 companies were newly listed on NewConnect and the total value of IPOs and SPOs was PLN 0.2 billion in Q4 2012, compared to 24 new listings worth PLN 0.3 billion in Q3 2012 and 38 new listings worth PLN 0.2 billion in Q4 2011. There were 429 companies listed on NewConnect and their total capitalization was PLN 11.1 billion at the end of Q4 2012, compared to 420 companies worth PLN 9.3 billion at the end of Q3 2012 and 351 companies worth PLN 8.5 billion at the end of Q4 2011.

Consolidated listing revenue of WSE Group, market capitalisation, number of listed companies, number and capitalisation of new listings, value of offerings, number and value of de-listings on NewConnect in 2011-2012 and in selected quarters of 2011-2012

  For the three-month period ended Year ended December 31,
  December 31, 2012 September 30, 2012 December 31, 2011 2012 2011
NewConnect          
Listing revenue (PLN million) 0.7 0.8 0.6 3.1 1.8
Capitalisation of listed companies (domestic) (PLN billion) 10.8 9.2 8.4 10.8 8.4
Capitalisation of listed companies
(foreign) (PLN billion)
0.3 0.1 0.1 0.3 0.1
Number of listed companies (domestic) 421 413 344 421 344
Number of listed companies (foreign) 8 7 7 8 7
Value of offerings (IPO and SPO)
(PLN billion)
0.2 0.3 0.2 0.7 1.4
Number of newly listed companies
(in the period)
16 24 38 89 172
Capitalisation of newly listed companies
(PLN billion)
0.4 0.7 0.9 1.8 5.4
Number of de-listings* 7 1 1 11 6
Capitalisation of de-listed companies**
(PLN billion)
0.2 0.2 0.0 0.5 0.4
Source: Company * includes companies which transitioned to listing on the Main Market **based on market capitalisation at the time of de-listing

The number of issuers and the value of issues on the Catalyst market operated by WSE and BondSpot grew dynamically in the period under review. Catalyst listed debt instruments of 156 issuers (including the State Treasury) at the end of 2012 compared to 100 issuers at the end of 2011. The total nominal value of issued instruments was PLN 567.3 billion at the end of 2012 compared to PLN 531.6 billion at the end of 2011, including the value of non-Treasury instruments at PLN 52.3 billion and PLN 40 billion, respectively.

Consolidated listing revenue of WSE Group, number of issuers, number of issued instruments and value of issued instruments on Catalyst in 2011-2012 and in selected quarters of 2011-2012

  For the three-month period ended Year ended
December 31,
  December 31, 2012 September 30, 2012 December 31, 2011 2012 2011
Catalyst          
Listing revenue (PLN million) 0.2 0.1 0.3 0.7 1.1
Number of issuers 156 147 100 156 100
Number of instruments 361 338 246 361 246
of which: non-treasury instruments 325 302 208 325 208
Value of issue (PLN billion) 567.3 562.4 531.6 567.3 531.6
of which: non-treasury instruments 52.3 48.8 40.0 52.3 40.0
Source: Company

Information services

Revenues from information services in 2012 and 2011 remained stable and amounted to PLN 36.5 million and PLN 36.6 million, respectively. Revenues from information services amounted to PLN 8.9 million in Q4 2012 compared to PLN 8.8 million in Q3 2012 and PLN 9.5 million in Q4 2011.

Revenues from information services in the periods under review were driven among others by the number of data vendors and subscribers. The year-on-year decrease in revenues from information services in 2012 was driven mainly by a decrease in the number of subscribers of professional data feeds.

Consolidated revenues of WSE Group from information services, number of data vendors and subscribers in 2011-2012 and in selected quarters of 2011-2012

  As at/ For the three-month period ended
As at / Year ended
December 31,
  December
31, 2012
September
30, 2012
December
31, 2011
2012 2011
Revenues from information services (PLN million)
8.9 8.8 9.5 36.5 36.6
Number of data vendors
58 58 57 58 57
Number of subscribers ('000 of subscribers)
288.1 285.1 327.3 288.1 327.3
Source: Company

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