GPW to offer new derivatives
The Warsaw Stock Exchange (GPW) is planning to introduce to trading new derivatives to address the needs of market participants. Futures on shares of LPP with a new multiplier of 1 and futures on shares of 11 BIT Studios with a new multiplier of 10 will be introduced to trading.
The objective of the strategic initiative Development of Derivatives is to attract new investors to the derivatives market. GPW in co-operation with market participants supports the listing of single-stock futures with a multiplier of 1 and 10.
“GPW’s strategic initiative promotes further development of the derivative market.” says Izabela Olszewska (pictured), Member of the GPW Management Board. “One of our priorities is to attract investors to the derivatives market, which is why we have implemented a range of regulatory, organisational, and systemic modifications allowing for the introduction to trading of futures with a multiplier of 1 and 10. A smaller contract size and consequently a smaller margin requirement could encourage more investor trading. The modification helps market makers to actively support liquidity, which is instrumental to the safety of trading,”
With the introduction of multipliers, the following instruments will be traded on GPW as of 18 March 2019:
1. Futures with a multiplier of 1 on shares of LPP and futures with a multiplier of 10 on shares of 11 BIT Studios;
2. Futures on shares of Santander Bank Polska and mBank with a multiplier of 10 (previously 100; only applicable to series introduced to trading as of 18 March 2019).
GPW is planning to introduce new index futures. The underlying of the new futures include the WIG.GAMES index as well as three macrosector indices which will be published by GPW as of 18 March 2019:
• Banks-insurance-capital market-debt (WIG.MS-FIN)
• Fuel-gas-chemicals (WIG.MS-PET)
• Energy-mining-resources (WIG.MS-BAS)
“The index structure has been consulted with market participants to ensure that the new indices meet the requirements for attractive underlying instruments of futures. We are certain that investors will be quick to appreciate their benefits and to accept the new instruments,” says Izabela Olszewska.
The new indices will be published as of 18 March 2019. The index values will be published continually, every 15 seconds until the session closes.
Macrosector index futures will be introduced to trading on the exchange following the approval of their Trading Rules by the Polish Financial Supervision Authority.