Every security is supported by at least one Market Maker, who has the obligation to quote binding bid and ask prices for a minimum of 20,000 euros on a continuous basis. Baader Wertpapierhandelsbank and Centrobank, which is owned by the Austrian Raiffeisen Zentralbank (RZB), will be acting as Market Makers. Both firms have many years of experience in market making and credentials in Eastern Europe expertise. "NEWEX is thus the only market in which CEE stocks can be traded continuously in euros with a fully electronic system and market makers who secure liquidity," said Dr. Erich Obersteiner, member of the Executive Board of NEWEX Börse AG, highlighting the innovative aspect of this offer.
"Over the Xetra trading system, we offer both institutional and private investors CEE securities with the same efficiency and speed as West European securities," as his fellow Board member Dr. Albrecht Bürger added.
The NEWEX Börse AG, a joint venture of Deutsche Börse AG and Wiener Börse AG that is based in Vienna, commenced operations one year ago. In May, the company launched a comprehensive liquidity initiative which included, among other things, switching over from its own Xetra system to the Frankfurt Xetra system and taking over operation of the "NEWEX" Central and Eastern Europe segment within the regulated unofficial market of the Frankfurt stock exchange. The initiation of Continuous Trading with Market Maker support successfully completes the announced liquidity initiative of NEWEX; a little more than 300 million euros in turnover per month is now being posted at NEWEX.
NEWEX has also announced that it is engaged in talks with leading online banks in order to benefit from their access to private investors through cooperation agreements. By extending the amount of corporate information available on Central and East Europe private investors ought to be sensitized to this area.
