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- The amendments of the Alternative Trading System Rules implemented the next stage of the NewConnect 2.0 project aimed at improving trading safety and transparency of the market.
- The amendments of the ATS Rules follow the necessary alignment of the regulations within the EU Market Abuse Regulation (MAR).
The amendments of the Alternative Trading System Rules are part of the NewConnect 2.0 project initiated on 25 May 2015. The objective of the NewConnect reform is to reinforce trust in the market and make it more attractive to different investor groups.
The Council of Authorised Advisers appointed as part of NewConnect 2.0 co-operates with the Exchange in measures taken to improve market quality.
Also, the amendments of the ATS Rules arise from the necessary alignment of the regulations with changes in the legal environment relating to the EU Market Abuse Regulation (MAR) which takes effect on 3 July 2016.
“We are announcing amendments of the ATS Rules in implementation of the next stage of NewConnect 2.0 aiming to improve trade safety and quality of listed companies. Later this year, we are planning to take further measures which will promote the market and activate investors and issuers. In addition to amendments of the ATS Rules as part of NewConnect 2.0, we have implemented amendments which align the regulations with the EU Market Abuse Regulation (MAR). I believe the amendments will reinforce trust in NewConnect and make the market more transparent. We will enforce strict compliance with the ATS Rules,” said Professor Małgorzata Zaleska, President of the Management Board of GPW.
The key amendments of the ATS Rules include three areas:
I. information obligations of issuers
II. introduction of securities terms, including the mandatory information document content and the terms of delisting securities
III. operation terms of Authorised Advisers
As of the effective Market Abuse Regulation date, ATS issuers are subject to the insider information publication obligations under MAR. Consequently, major amendments have been made in the scope of current reports provided by issuers under the ATS Rules. The amendments include deletion of the general clause in the rules which previously constituted a simplified counterpart to the definition of insider information and required issuers to provide information on all circumstances and events relevant to investors. Furthermore, the list of information subject to mandatory publication no longer includes events which will have to be reported under MAR as insider information.
Key amendments concerning the information obligations include changes to the annual reports publication deadlines and Q4 quarterly reports. The annual report publication deadline by issuers of GPW securities listed on the Alternative Trading System has been reduced from six to five months as of the end of the financial year. Furthermore, the change of the annual report publication deadline for NewConnect issuers emphasises the need to ensure a sequence of events required under the Code of Commercial Companies, linking the annual report publication deadline to the announcement of the general stockholders meeting and the date of the general stockholders meeting.
In line with the terms applicable on the regulated market, the amendments allow NewConnect-listed companies which publish an annual report within 80 days of the end of the financial year not to publish the Q4 report.
Concerning the terms of listing securities on the alternative trading system, provisions have been added which require issuers to submit an application for the introduction of any new issue shares of the same kind as shares introduced to trading on NewConnect no later than 12 months after a share capital increase. The mandatory contents of the information document now include the issuer’s declaration it has sufficient capital to ensure on-going operation of the company within 12 months.
Authorised Advisers who sign an agreement with issuers will be required to make a declaration they are familiar with the issuer’s reports for the past 6 months and its current situation. The circumstances under which the ATS organiser may decide to strike an entity off the register of Authorised Advisors have been clarified.
