PolskiThe GPW Group’s Strategy and its Implementation:
- Further development of projects supporting liquidity on GPW and acquisition of new market participants, including:
- development of the HVP Programme;
- acquisition of new market makers on the derivatives and cash markets;
- further improvement of GPW’s access infrastructure including development of the colocation service,
- launch of operations by new Exchange Members.
- Continued optimisations to enhance organisation and improve integration within the GPW Group.
- Harmonisation of GPW’s infrastructure and internal regulations with MiFID II.
- GPW’s plans to integrate post-trade services within the GPW Group including a majority stake to be held in the KDPW Group (currently GPW holds 33.33% of KDPW).
GPW’s Potential Decisions to Reduce Trading Fees
Starting in 2016, a new model of financing of supervision of the Polish capital market is in place, where the cost of supervision by the Polish Financial Supervision Authority is paid not only by GPW and KDPW as before but by a broader group of entities (including issuers, investment firms, banks, insurers, investment fund managers). As a result, the cost paid by the GPW Group was reduced in 2016 by approximately one half compared to 2015. In response, GPW decided to reduce its transaction fees and market data fees (for details, see the section on the implementation of GPW’s strategy). However, GPW may decide to offer further reductions of trading fees mainly with a view to supporting liquidity on the GPW markets.
POLPX’s New Trading Systems in H1 2017
State-of-the-art technology will provide POLPX with improved functionalities and enable it to efficiently handle growing trading volumes and add new commodities and derivatives in the future. The Polish Power Exchange and Nasdaq signed an agreement concerning the implementation of the trading system X-stream Trading on 22 December 2014; the SAPRI annex was signed in February 2015.
SAPRI, Nasdaq’s energy auction application, will be used by POLPX in European cross-border energy auctions including PCR (Price Coupling of Regions). POLPX accepted the two new systems in September 2016 and is currently running final tests with market participants. The solutions will be rolled out in production in H1 2017.
POLPX’s Participation in the International Market
POLPX’s accession to the PCR will impact the development of the spot market in 2017 with the delivery of electricity on POLPX’s Day-Ahead and Intraday Markets in Poland. It will also allow POLPX to participate in the spot markets of other Western and Northern European countries.
In 2017, POLPX’s involvement in international projects will include the operational launch of the Day-Ahead Market in the PCR model on the MRC, expected at the turn of Q1 to Q2 2017 (date to be determined). For this purpose, POLPX will make the necessary applications in the PCR and MCR. It expects to conclude operational agreements for Market Coupling at the SwePol and LitPol links under the PCR model. The process will be initiated in February 2017. The Polish Power Grid Company (PSE) and POLPX expect to negotiate and sign cross-border cooperation agreements with the participation of exchanges and operators for the links with Lithuania and Sweden in Q1 2017.
POLPX expects to participate in the LIP POLSKA and XBID intraday market projects following necessary arrangements with the Energy Regulatory Office and the Polish Power Grid Company. The 2017 financial plan is based on project budgets; the costs of intraday market projects will be determined once the agreements are signed.