.jpg)
- Today the WSE has introduced to trading WIG20 futures with a multiplier of PLN 20.
- Futures with a new multiplier will eventually replace the currently listed futures with a multiplier of PLN 10.
- The change of multiplier also applies to prospective WIG30 futures.
Early autumn this year is a time of important changes on the Warsaw Stock Exchange. On 23 September 2013, the WSE not only begins to calculate and publish its new blue-chip index WIG30 but it is also making major changes on the futures market. WIG20 futures with a multiplier of PLN 20 have been introduced to trading on the exchange as of today. They will eventually replace the currently listed futures with a multiplier of PLN 10.
Following the change of the multiplier, the nominal value of contracts and the contract tick size will double to PLN 20. Consequently, any change in contract price by 1 index point will entail a gain or loss to an investor of PLN 20 instead of PLN 10 as before (gain/loss net of fees). The main advantage of the new futures is that the tick size will be double that of the currently listed futures, which will make the contracts much more attractive cost-wise. Assuming that commissions charged to investors remain unchanged, investors will for the first time be able to generate additional returns on change of the contract price by one tick, i.e., by 1 index point. In view of the very low volatility of futures prices observed for a long time, the change may be of fundamental importance to stock exchange investors.
WIG20 futures with a multiplier of PLN 20 will eventually replace the currently listed instruments. The migration to futures with the new multiplier will be gradual. According to the timeline, futures with a multiplier of PLN 10 and futures with a multiplier of PLN 20 will be listed in parallel for a certain period of time. Investors will have time to learn about the advantages of the new futures and to convert positions in existing futures to the new futures. However, on the expiration of the September series of futures with a multiplier of PLN 10 (series FW20U13), no further series of such futures will be introduced to trading on the exchange. The last series of currently listed futures with a multiplier of PLN 10 will be series FW20M14. The migration to the new futures is scheduled to be completed no later than 20 June 2014. The migration may take a shorter time if there are no open positions in any of the last series of the currently listed futures. In that case, it will be possible to suspend trading in such series until their expiration and the migration may automatically end sooner.
Trading fees to be charged by the WSE to Exchange Members for transactions in the new futures will be the same as the currently charged fees (i.e., fees charged for session trades and block trades as well as fees charged to market makers). The WSE is not planning to set higher fees for the new contracts. If final commissions charged to investors remain unchanged, the new instrument will be much more attractive to investors.
For more details about the new WIG20 futures with a multiplier of PLN 20, visit the WSE website: http://gpw.pl/fw20
