Share of Investors in Financial Instrument Trading

Warsaw, 21 February 2013

Share of Investors in Financial Instrument Trading

on WSE in 2012

PRESS RELEASE

Investor structure on WSE’s Main Market in equities in 2012 was similar to 2011; retail investors generated 18% of trading (no change YoY); institutional investors, 34% (-1 percentage point); and foreign investors, 48% (+1 percentage point).
Retail investors once again made the biggest contribution to trading in futures (47%) while the share of foreign investors grew steadily (17%, a historical high).
Retail investors were in the lead on NewConnect, similar to previous years.

WSE MAIN MARKET – Equities Trading:

Foreign investors generated the biggest part of trading in equities on the Main Market in 2012, similar to previous years. They contributed 48% of trading in equities in 2012; their share in trading increased to 50% in H2 2012. Brokers from the United Kingdom were the biggest group of foreign brokers in H2 2012 (59%), followed once again by French brokers (19%).

Domestic financial institutions generated 34% of trading in 2012. Market makers were the biggest group of domestic institutions (37% in H2 2012), followed by investment funds (28% in H2 2012) and pension funds (17% in H2 2012).

The contribution of retail investors remained stable: they generated 18% of trading in equities on the Main Market in 2012 (the same proportion as in 2011).

Table 1.Investor structure on the Main Market in equities.

Source: WSE survey of investment firms, estimates

NEWCONNECT:

On NewConnect, retail investors remained in the lead and generated 73% of trading in 2012. Foreign investors contributed 10% of trading in the period while domestic institutions generated 17% of trading. Private firms remained the biggest group in this category and accounted for 35% of trading in equities in H2 2012.

Table 2.Investor structure onNewConnect.

Source: WSE survey of investment firms, estimates

DERIVATIVES MARKET:

Domestic retail investors were in the lead in 2012 also onthe derivatives market. Their share in trading was 47% for futures and 50% for options. The contribution of domestic institutions and foreign investors to trading in futures was 36% and 17% respectively. Foreign firms generated 11% of trading in options in the period while the share of domestic institutions grew substantially to 39% (12% in 2011).

Table 3.Investor structure on the futures market.

Source: WSE survey of investment firms, estimates

Table 4.Investor structure on the options market.

Source: WSE survey of investment firms, estimates

The WSE conducted a survey of the share of different investor groups (foreign investors, domestic institutional investors, domestic retail investors) in trading in financial instruments on the market in H2 2012. According to the applied methodology,* the share of each investor group is based on the results of a survey of domestic brokerage houses while annual figures are based on semi-annual numbers.

The survey covered 31 domestic WSE members who completed questionnaires distributed by the WSE. The respondents provided specific figures. The structure of foreign clients of Exchange Members was estimated using a modified method. The activity of market makers and management of clients’ portfolios were included in thecategory of domestic institutional investors. The survey covered session trading on the WSE.

Appendix 1.Share of Investors in Trading on the Exchange – Aggregate Data 1996 – 2012.

***

The Warsaw Stock Exchange is the biggest securities exchange in Central and Eastern Europe. The WSE organises trading on one of the most dynamically growing capital markets in Europe. The WSE operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. The WSE is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, the WSE is a public company listed on the Warsaw Stock Exchange. For more information visit

WSE Public Relations:

BłażejKarwowski – Director, WSE Press Spokesman: +48 22537 74 71,

Anna Wiśniewska: +48 22537 77 17, +48607 774 060,

Marta Grajeta: +48 22537 77 66, +48603369699,

Olga Chądzeńska: +48 22537 78 99, +48603366808,

Martyna Makiel: +48 22537 7089, +48605470 938,