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- As of 4 March 2016, GPW introduces to trading new futures on the stock of Eurocash S.A., a company listed on the Main Market
The Warsaw Stock Exchange introduces new futures to trading as of 4 March 2016.
GPW currently offers trade in futures on the stock of 27 companies. After the addition, there will be 28 single-stock futures in trading.
The futures on the stock of Eurocash S.A. have a multiplier of 100 (one contract corresponds to 100 shares). All singe-stock futures listed on GPW have a multiplier of 100 or 1000. The contract value is equal to the futures price times the multiplier.
“Our decision to introduce new single-stock futures addresses growing investor interest. The year 2015 was a record-breaking year as measured by the volume of trade in single-stock futures. Single-stock futures are popular in particular at times of increased volatility of the underlying instrument. They can provide returns both on the upside and the downside of the prices of underlying stock,” said Grzegorz Zawada, Vice President of the Management Board of GPW.
Trade in single-stock futures is supported by market makers – Polish and international financial institutions. Thanks to market makers’ quotes, investors can open and close positions at any time, which largely improves the safety of trade in single-stock futures. The market makers of the futures on the stock of Eurocash S.A. are Dom Maklerski Banku Handlowego S.A. and Dom Maklerski PKO Banku Polskiego. Thanks to leverage (where the required cash in the account is less than the value of the investment), single-stock futures can provide high returns, although at higher investment risks than other financial instruments. Futures can also be used to hedge the risk of loss on held equity portfolios. The low commissions charged on trade in single-stock futures also provide an incentive.
Trade in single-stock futures was record-high in 2015: the volume of trade was 1,033,300 contracts, over 78% more than in 2014. In the nearest future, GPW is planning to increase the number of stocks covered by futures, take other measures which will make the market more attractive and safe, and continue efforts aimed at investor education.
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Warsaw Stock Exchange (GPW) is the biggest securities exchange in Central and Eastern Europe. GPW operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. GPW is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, GPW is a public company listed on Warsaw Stock Exchange. For more information visit http://www.gpw.pl
