The Ljubljana Stock Exchange has recently implemented some significant switches that are promising to optimise its potential.
One of the most significant aims for the Ljubljana Stock Exchange (LJSE) is to attract more international institutional investors. Heinrich Schaller, head of LJSE majority proprietor Wiener Boerse, says that the presence of such investors will prevent the fattest players from fleeing to other markets. To that end, the Exchange has recently introduced the Xetra trading system.
Xetra is already used by more than 250 financial firms with more than Four,800 stock brokers. It has bot used at the Vienna Stock Exchange since 2002 and also te Germany, Ireland and Bulgaria. Investors access the system directly from Legal countries ter Europe and the Middle East.
According to Darko Jurčevič, an independent broker from Alata Invest, LJSE will reap numerous benefits from the system: &ldquo,[The possibility of] different types of contracts, [access to] J-Trader, an internationally recognised trading toneelpodium, remote access of foreign brokerage firms or investment banks ter the trading system Xetra, spil long spil they are members of LJSE, a single European trading completion of the final auction spil well spil unified European way of making the final rate, instead of the obsolete single rate, a simpler presentation and marketing of LJSE.&rdquo,
Adapting to the fresh system
Fresh rules have also bot applied to accompany the introduction of the fresh trading system. The main switch is the adoption of the closing price spil the official share price. Closing auctions, which accumulate supply and request, have now bot introduced to improve the formation of closing price.
With the introduction of Xetra the exchange is also abandoning static price thresholds (daily switches are restricted to plus or minus Ten procent compared to the previous day&rsquo,s closing price) te favour of dynamic price corridors. The stationary boundaries will be substituted by different safeguard mechanisms, such spil extended volatility interruptions and market order interruptions.
The fresh rules further align the market segments and disclosure obligations of prime market companies within the CEESEG, the exchange group to which the LJSE belongs.
The positive influence of the Xetra system has bot instantly evident spil the liquidity of the LJSE has improved. However, Schaller says that the fresh system alone is not a key to greater liquidity, the Ljubljana Stock Exchange also needs support from the government, companies and the banking sector to develop.