GPW Offers New Derivatives

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 multiplier of futures on shares of mBank and Santander Bank will change to 10 (previously 100)
New macroindices will become the underlying of futures

New derivatives and change of multiplier

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. 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,” said Izabela Olszewska, Member of the GPW Management Board.

With the introduction of multipliers, the following instruments will be traded on GPW as of 18 March 2019:

Futures with a multiplier of 1 on shares of LPP and futures with a multiplier of 10 on shares of 11 BIT Studios;
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).

Futures on macrosector indices

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,” said 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.

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The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and calculates the benchmarks WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl