The activities of the Company and the Group are exposed to three types of financial risks: market risk, credit risk, and liquidity risk. Details of how financial risks are identified and managed have been described in the Consolidated Financial Statements.

In 2013, the Group’s liquidity risk, which means inability to timely meet its payment obligations, was minor in view of material financial assets held and positive cash flows from operating activities which exceeded the value of existing liabilities. The current liquidity ratio amounted to 7,7 at 2013 year-end and 9,6 at 2012 year-end. The current liquidity ratios were adjusted for the impact of current assets and liabilities of the PolPX Group relating to the clearing guarantee system.

WSE manages financial liquidity in accordance with the “Current Assets Allocation Procedure” adopted by the WSE Management Board. Pursuant to this document, the procedures for investing free cash should be handled in view of the due dates of liabilities so as to minimise the liquidity risk for the parent entity and, at the same time, to maximise its financial income. In practical terms, this means that the Group invests its current assets in Treasury bonds and bank deposits and the average duration of a financial asset portfolio was around 2 months at the end of 2013.

As of 1 January 2012, WSE applies hedge accounting. As at 31 December 2013, hedging covered cash flows under the agreement concerning the acquisition of a licence and delivery of a new trading system (UTP-Derivatives).

In the opinion of the Management Board, the Group’s financial assets and financial risk management process is effective and ensures timely meeting of payment obligations.

No threats have been identified to the Group’s liquidity.