Poland Creates Capital Markets Hub

Terry Flanagan

Brokers and exchanges implement advanced technology.

A rapidly maturing market in central and eastern Europe is the catalyst for technology upgrades by regional brokers and exchanges.

A case in point is XTB, a brokerage firm based in Poland, which has selected SunGard’s Valdi suite of integrated market data, risk management and trading solutions to connect to the Warsaw Stock Exchange (WSE).

XTB also plans to connect to the SunGard Global Network (SGN), an international order routing and market data network that links more than 2,500 asset managers and brokers.

The Warsaw Exchange has in the past sold licenses direct to brokers who have had to host and manage the systems themselves.  Now we offer trading access and market systems for the Warsaw Exchange on an ASP basis, we will be doing the hosting and managing for XTB, improving their service and bring their costs down as a result,” Ryan Keough, managing director in SunGard’s global trading business, told Markets Media.

Changes in Poland’s capital market structure are having a salutary impact on demand for SunGard products and services.

“We’re seeing similar market characteristics in Poland to those in Brazil,” Keough said.  “The combination of an improving economy, no banking crisis, all the building going on–you see cranes everywhere here–and an overall optimism about the future – overall optimism compared to Western Europe – is very redolent of Brazil a few years ago.”

The market is therefore attractive to outside investors and more and more people are becoming interested in accessing it.

The market is maturing rapidly; the Warsaw Exchange itself is upgrading its own systems to prepare for larger volumes.

“The Warsaw Exchange will be migrating to NYSE’s Universal Trading Platform so we’ll automatically migrate XTB when it changes, so XTB will be able to access the existing systems as well as the new ones in time,” Keough said.

XTB selected SunGard’s Valdi Market Access hosted services to support its local clients as well as help grow its business internationally, while controlling its technology costs.

“Through our hosted market access services, XTB can support local clients in trading inside and outside the region and appeal to international investors wanting to access opportunities in the region,” said Keough.

SunGard’s experience understanding the specifics of the market are an advantage that brokers can exploit for their own benefit, he said.

“We’ve been in the Polish market for over ten years, so we have a lot of experience with the Warsaw Exchange and its members,” said Keough. “ With the market and technology changes we’re seeing, we’re well positioned to help brokers grow their businesses and access local and international markets.”

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