.jpg)
- Amendments to the WSE’s Alternative Trading System (ATS) Rules take effect as of 1 March 2013.
- The major amendments include: (a) introduction of the criterion of minimum dispersal of shares to be introduced to trading on the ATS for the first time, (2) obligation imposed on issuers to sign an agreement with an Authorised Adviser for a term of 3 years, (3) increase of the maximum cash penalty levied on an Authorised Adviser or an issuer to PLN 50,000.
The WSE has decided to introduce major amendments to the ATS Rules aiming to enhance the transparency and safety of the alternative trading system operated by the WSE. These amendments follow the amendments introduced in June 2012 when the Exchange authorities largely expanded the reporting obligations of companies listed on NewConnect and Catalyst as well as the list of penalties for non-compliance and introduced a new segmentation of the NewConnect market.
The new regulations include the criterion of dispersed shareholding as a requirement of introducing shares to NewConnect. As of 1 March 2013, companies seeking a listing on the WSE’s alternative market will be subject to the requirement of minimum shareholding dispersal. At least 15 percent of shares referred to in an application for introduction to trading for the first time must be held by at least 10 shareholders, each holding no more than 5 percent of the total vote at the general meeting and not being a related party of the issuer.
Another major change imposes on the issuer the obligation to sign an agreement with an Authorised Adviser for a term of 3 years; the ATS Organiser may waive this obligation upon the lapse of 1 year. Previously, issuers were required to sign such an agreement for a term of 1 year.
Furthermore, the Management Board of the Exchange has decided to raise the maximum amount of a cash penalty that may be levied on an issuer or an Authorised Adviser to PLN 50,000. The maximum penalty is currently PLN 20,000.
The amendments described above as well as other detailed amendments are introduced as part of the WSE’s on-going efforts aiming to make the NewConnect market more attractive to investors. All aspects of the operation of the ATS will be thoroughly analysed in 2013 as a basis of further measures to be taken by the WSE aiming at improved quality and attractiveness of the market.
