WSE - Warsaw Stock Exchange SA

09/17/2019 | Press release | Distributed by Public on 09/17/2019 02:54

Stable Development of GPW Group through Diversification on Financial and Commodity Markets

2019-09-17 10:19:07

PRESS RELEASE

  • The GPW Group opens co-operation with the Baltic-Finnish Gas Exchange GET Baltic
  • The clearing house IRGiT, a member of the GPW Group, signed an advisory services agreement with the Baltic-Finnish Gas Exchange GET Baltic in Vilnius on 16 September 2019
  • The scope of IRGiT's services includes the development of a risk management system, a collateral and clearing model for the natural gas exchange operated by
  • GET Baltic for Lithuania, Latvia, Estonia and, from 1 January 2020, Finland
  • The GPW Group focuses on further diversification of business

The GPW Group includes the leading institutions of Poland's capital and commodity markets. The activity of the GPW Group is diversified and covers the financial market and the commodity market. The GPW Group operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and natural gas; the GPW Group provides indices and benchmarks. In 2018, the index provider FTSE Russell reclassified Poland to Developed Markets, putting the Polish capital market among the world's 25 developed economies. The Group's strategy #GPW2022 provides for the development of business lines, including the electricity and gas market, and further diversification of business by opening of new market segments. The agreement between the clearing house IRGiT and the Lithuanian gas exchange GET Baltic matches the GPW Group's strategic initiatives.
The objective of the cooperation is to create an optimal collateral and clearing model as well as a risk management system for spot and forward gas markets operated by GET Baltic. GET Baltic operates a natural gas exchange for regional trading in the market areas located in Lithuania, Latvia, Estonia and from 1 January 2020 in Finland. One rulebook for trading and settlement is used for all four counties, therefore the new collateral and clearing model will introduce European standards, reduce capital needed to trade, enhance trading efficiency and liquidity in the whole Baltic and Finnish region.

The integration of gas markets in the Baltic region is a process aimed at connecting gas markets into homogeneous balancing zones. It takes place at many levels: infrastructural, regulatory and business. With its central location, Poland will establish in the near future a physical connection to Denmark and Sweden via the Baltic Pipe, and to Lithuania, Latvia, Estonia and Finland via the GIPL. This will create new opportunities for the development of cross-border trade and the creation of a liquid regional gas market. The 'Gas Hub' project, which has been described in the Strategy for Responsible Growth as '(...) a gas transmission and trading centre for the countries of Central and Eastern Europe and the Baltic States', fits perfectly into all integration activities.

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The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl
Towarowa Giełda Energii S.A. (Polish Power Exchange, TGE) is the Nominated Electricity Market Operator (NEMO) for the Polish price area and the only licensed commodity exchange in Poland. Since March 2015, it has been authorised to operate a regulated market. TGE operates as a PCR co-ordinator and an operator on the European MRC market since 15 November 2017. TGE is listed by ACER as a trade reporting platform under REMIT. TGE guarantees certainty and security of transactions on all operated markets. TGE is a member of the Warsaw Stock Exchange Group since March 2012.
IRGiT (Izba Rozliczeniowa Giełd Towarowych S.A.) is a clearing house licensed by the Polish Financial Supervision Authority and operating on the Polish market for electricity, gas, property rights and CO2 Emission Allowances, responsible for clearing, settlement and securing of all transactions concluded on Towarowa Giełda Energii S.A. IRGiT is a part of the TGE Group and is a member of EACH - the European Association of CCP Clearing Houses as well as the Association of Futures Markets. In 2018, the total volume of transactions registered by IRGiT for clearing amounted to 446 TWh of electricity, 286 TWh of gas and 52 TWh of property rights. The total value of collateral contributed to IRGiT at the end of August 2019 amounted to over PLN 7.2 billion.
GET Baltic established in 2012 in Lithuania is a part of energy transmission and exchange state-owned group of companies - EPSO-G. The organisation is run by experts in energy trading, commodity markets, IT projects management, EU regulation, international business development, risk management and other relevant business fields. GET Baltic operates as a licensed natural gas market operator with the status of Registered Reporting Mechanism provided by ACER. The company administrates the electronic trading system for trading spot and forward natural gas products with physical delivery in the market areas located in Lithuania, Latvia, Estonia and, from 1 January 2020, Finland. The development of tailor-made solutions for natural gas trading is intended to contribute to increased liquidity, competitiveness and transparency of wholesale gas markets in Finland and the Baltic States.