NEW YORK-The head of NYSE Euronext said Monday that he hoped the technology upgrade it is implementing at the Warsaw Stock Exchange will lead to additional partnerships in Central and Eastern Europe.
The agreement announced July 12 “goes far beyond technology,’’ said NYSE Euronext Chief Executive Office Duncan Niederauer at its headquarters on Wall Street. “We will be working together to bring other lesser markets” into a de factor regional exchange of stocks and derivatives.
The Warsaw exchange aims to become the “financial hub of Central and Eastern Europe,’’ said Ludwik Sobolewski, president of its management board.
The market capitalization of the firms listed on the Warsaw exchange and its daily trading volume are each 30 percent higher, he said, than the rival Vienna Stock Exchange. The market capitalization of the Warsaw stocks is about $232 million.
The upgrade of the Warsaw exchange’s technology to NYSE Technologies’ Universal Trading Platform will replace roughly eight- or nine-year-old technology originally brought in from the Paris Stock Exchange, Sobolewski said.
Warsaw operates a stock market, a derivatives market, a bond market and a market for shares in young growth companies, Sobolewski said.
The NYSE platform will increase execution speed and reliability as well as allow the Warsaw exchange to trade not just in stocks but a wide variety of derivatives, Sobolewski said.
New types of orders will also result, but he did not specify any.
“Modern exchanges should not only focus on being a simple order,’’ processing system, he said, “but should also think about how to build the markets.”
Creating a network of exchanges would make investing in Central and Eastern Europe easier, Niederauer said, by making stocks in the region “an assessable asset class,’’ he said.
Poland is bordered by such “lesser markets” as the Czech Republic, Slovakia, Ukraine, Belarus and Lithuania.
NYSE Euronext has established similar technology and strategic partnerships in the Persian Gulf, with the State of Qatar; and, in Asia, with the Tokyo Stock Exchange. The Tokyo relationship centers on options, initially, Niederauer said.