Diversification aims at immunising WSE Group’s financial results against trends or investor activity on the cash market, which currently constitutes the prevailing source of income for WSE Group.
WSE.2020, the new strategy of Warsaw Stock Exchange for 2014-2020, was approved by the Exchange Management Board and accepted by the Exchange Supervisory Board on 18 December 2013.
The strategy WSE.2020 focuses on five areas of the WSE Group:
- trade in financial instruments;
- trade in commodities;
- post-trade services;
- new business services;
- organisation.
Activities pursued within these areas will strengthen the security of WSE’s business model and provide new sources of revenue supporting generation of long-term stable shareholder value. This will ensure effective accomplishment of the mission of building an international capital hub in Warsaw: Warsaw Capital City, supporting the Polish economy including Poland’s capital market, and assisting the markets and economies in which the WSE Group is actively present.
The main strategic goal of WSE is to achieve, either independently, via strategic alliance or partnership-like cooperation with significant entities from the capital markets, a dominant role in the Region and an important position on the European capital markets. The WSE vision assumes creation of a strong and diversified organisation by 2020, in active co-operation with its stakeholders. The organisation shall:
- be able to meet the challenges of domestic and international competition;
- provide domestic and international entities with holistic exchange services based on innovative technological and business solutions, in the areas of trade and clearing of financial instruments and commodities;
- be trustworthy and oriented towards stable, constant growth of shareholder value;
- remain an attractive business party for European exchanges and markets.
Warsaw Stock Exchange highlights two key strategic objectives:
- maximisation of the existing sources of WSE Group growth potential (in particular local investors and issuers potential);
- further diversification of income sources and internationalisation of business activities.
Current sources of WSE Group growth potential are yet to be fully developed. The key opportunities are seen in the following areas: liquidity of the listed instruments, exchange traded instruments share in the portfolios of domestic households, investment funds and pension funds investment potential, domestic banks direct participation in organised markets, share of automated trading in turnover, capital sources used by private enterprises and governmental bodies for further development, issuance activity of the banks, including mortgage banks and structured products issuers, energy commodities trading, including natural gas.
Diversification aims at immunising WSE Group’s financial results against trends or investor activity on the cash market, which currently constitutes the prevailing source of income for WSE Group. The diversification is to be implemented across products, services, clients and geographies. Areas in which the WSE Group has not yet been active will be added to the key directions of development.
WSE development path assumes continuation of the organic growth of current business lines as well as launching new ones, both from within the WSE Group and via joint ventures with selected partners who offer innovative products, with established market positions, unique resources and growth perspectives. The strategy of diversification with the participation of partners will be pursued dynamically, as a rule based on very careful selection of partners with above-average competences.
At the time of publishing of this Report, one of the options remains M&A activity with CEESEG, subject to conditions which enhance the WSE Group’s growth and generate benefits for WSE Group stakeholders. Following the potential merger/acquisition, there will be further strengthening in terms of business and profile, with the aim of achieving an ever stronger competitive position, which may potentially allow for a strategic alliance or partnership with other significant entities in the sector.
Warsaw Stock Exchange Strategy 2014-2020 [Summary] [PDF 666 KB]
Warsaw Stock Exchange Strategy 2014-2020 [Presentation] [PDF 1,67 MB]