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PX Group
Main activities Organizing regulated and unregulated securities markets Organizing a commodity market (electricity delivery) Maintaining securities records,
clearing and settlement of transactions in securities and electricity delivery
Czech capital market share of 98.5% In 2011, 23.4 TWh of Czech electricity was traded,
corresponding to some 37.9% of electricity consumption in the Czech Republic
Market capitalization of securities maintained in record exceeding CZK 1,000,000,000,000
Share of 99.9% in volume of trades and transfers settled on Czech capital market
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PX Group – companies
Securities market organizer
Maintaining securities register, clearing and settlement Electricity market organizer
Central Counterparty
Central Clearing Counterparty
Energy Clearing CounterpartyCounterparties for participants in concluding electricity trades
Consolidated results as at 31 Dec 2008 2009 2010 2011
Total assets (EUR m) 172.2 128.3 113.4 103.7
Revenues (EUR m) 16.8 14.4 17,2 21.3
Profit after tax (EUR m) 5.8 4.8 4.1 6.5
Dividend payment (EUR) 35.65 16.85 16.92 16.32
PSE
CSDP PXE
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CEE Stock Exchange Group (CEESEG)
42% of total market capitalization of all exchanges in the region**
48% of equity trading volume in the region**
Internet: www.ceeseg.com
100% 92.74% 100 % 50.45%
Prague Stock Exchange
Czech Republic
Ljubljana Stock Exchange
Slovenia
Budapest Stock Exchange
Hungary
11.90%46.67%
Holding CEE Stock Exchange Group*
KE
LE
R C
CP
74.5%
KE
LE
R
Vienna Stock Exchange
Austria
CC
P.A
AP
CS
EX
AA
25.12%100% 100%
CC
P
En
erg
y C
lear
ing
C
ou
nte
rpar
ty
PX
E
33.33% 100%C
CC
10% 50%100%
33.33% 33.33%
CS
D P
rag
ue
CIS
MO
CE
GH
20% 5%
* Ownership Structure of CEESEG AG: 52.59% Austrian Banks, 47.41% issuers of the Vienna Stock Exchange**Czech Republic, Austria, Hungary, Slovenia, Slovakia, Poland, Romania, Bulgaria, Croatia, Serbia, Bosnia and Herzegovina, Montenegro
CEESEGData vending, indicesIndices cooperationMoU
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Prague Stock Exchange
Re-established in 1993
Member of the PX Group holding
Member of the CEE Stock Exchange Group (CEESEG)
Member of the Federation of European Securities Exchanges
U.S. SEC “Designated Offshore Securities Market”
Market capitalization in 2011: CZK 371 bn* Volume of equity trades in 2011: CZK 1,061 bn** Czech capital market share of 98.5% Regulated and non-regulated markets, derivative market Leader in the Central and East European Region Internet: www.pse.cz
* Total domestic and foreign issues** All PSE values are “single counted” (i.e. individual transactions are counted into the volume only once, not as purchase + sale). Some exchanges still publish “double-counted” values.
0200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000
2007 2008 2009 2010 2011
Number of trades:
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POWER EXCHANGE CENTRAL EUROPE
Established in 2007
Member of the PX Group holding
Member of the CEE Stock Exchange Group (CEESEG)
Volume of trades in 2011: 24.4 TWh Market in physical electricity futures with place of
delivery in the Czech Republic, Slovakia and Hungary Market in financial electricity futures with place of
delivery in the Czech Republic Access to the OTE/PXE spot market
for Czech electricity Anonymous trading system with standardized
products and guaranteed settlement Internet: www.pxe.cz
Number of participants at PXE:
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0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
60,000,000,000
70,000,000,000
80,000,000,000
20
05
20
06
20
07
20
08
20
09
20
10
20
11
Central Securities Depository Prague
Activity since 1993
Member of the PX Group holding
Member of the CEE Stock Exchange Group (CEESEG)
Member of the European Central Securities Depositories Association (ECSDA)
Volume of cleared trades and transactionsfor 2011: CZK 3,580.3 bn
Clearing and settlement system for securities tradesand trades concluded at PXE
Maintaining records on dematerialized securities Risk management Assigning ISIN Internet: www.cdcp.cz
Cleared automatic trades (CZK):
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Recent history
1992 █ PSE established – 12 banks and 5 brokerage companies
1993 █ The Exchange reopened
1993 █ First wave of Coupon Privatization – 955 issues
1995 █ Second wave of Coupon Privatization – 674 issues
1997 █ 1,301 issues withdrawn from trading
2004 █ FESE membership and first IPO – Zentiva
2007 █ PXE – Power Exchange Central Europe (Prague Energy Exchange)
2008 █ Vienna Stock Exchange becomes majority shareholder
2010 █ Activity of the Central Securities Depository Prague established
2010 █ PSE a part of the CEESEG holding company
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Shareholders and members
A private joint-stock company operating according to the membership principle Main shareholder is CEESEG AG (92.74%)
Trading is conducted via licensed securities dealers that are also members of the Exchange
The Exchange currently has 19 experienced members:
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Institutional investors Regional distribution:
Small investors – strong retail Their number is growing gradually – from 5,000 in 2004 to today’s 100,000 Traded equity volume is some CZK 20 bn per year “Small” investors in case of PSE are rather “high net worth individuals”, as
volumes per investor are considerably larger than in some other exchanges in the region
Interest in IPOs: in case of NWR, a considerable part of the issue was placed among small domestic investors
Several rapidly growing online brokers operate on the market
Investors
(December 2011, Source: Ipreo)
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Trading models
Automated processing of instructions - electronic exchange Own business platform - flexibility in development and implementation of new products Preparation of the Xetra© platform - well-known and used by many exchanges
SPAD - Quote driven The purchase and sale prices are continually quoted by the market makers Trading with blue chips Vast majority of blue chips has more than 1 market maker (5 to 10) High liquidity - PSE has one of the highest turnover velocity among the CEE
markets Low volatility - experienced market makers are crucial Trading in lots Attracting and keeping liquidity in case of dual listings
Automatic Trades (opening and closing auction, continual regime) - Order driven Trading in the auction regime is based on collecting buy and sell orders for
investment instruments for a fixed time point The continual regime enables conclusion of transactions based on continually sent
buy and sell orders for investment instruments
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Exchange markets
Regulated market Non-regulated market
Main Market Free Market START
Securities must conform to conditions stipulated by the Act on Capital Market Undertakings and Exchange Rules
Conditions for admission Market capitalization
of issue at least EUR 1,000,000
Proportion of issue distributed among the public at least 25%
Business activities for at least 3 years
On this market, the Exchange imposes stricter requirements on issues and their issuers than defined by the generally binding legislation concerning the capital market
Securities admitted to this market need only conform to conditions established by the Exchange
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Indices
PX index Official price index of blue chip PSE equity issues, calculated every 15
seconds CTX, CEESEG and CEETX indices
Indices of Vienna Stock Exchange plus those equities listed on PSE
European indices – annual change (2011) PX index – historical development
WIG 20-21.9%
SBI TOP-30.7%
SMI-7.8%
DAX-14.7%
AEX-11.9%
IBEX 35-13.1%
BET-17.7%
OMX N40-18.6%
FTSE 100-5.5%
BUX-20.4%
PX-25.6%
ATX-34.9%
Source: FESE
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Statistical data 2007 2008 2009 2010 2011
Number of trading days 250 252 250 252 253
EQUITIES
Total traded volume (CZK bn) 1,013.019 852.042 463.859 389.867 370.986
- Automatic trades 36.715 46.431 62.302 71.331 76.059
- SPAD 958.891 795.333 399.124 315.172 292.257
- Block trades 17.412 10.278 2.433 3.365 2.670
Average total daily volume (CZK mn) 4,052.1 3,381.1 1,855.4 1,547.1 1,466.3
Market capitalization (CZK bn) 1,841.7 1,091.7 1,293.5 1,388.0 1,060.8
PX index (end of year) 1,815.1 858.2 1,117.3 1,224.8 911.1
Number of issues (end of year) 32 28 25 27 26
BONDS
Total traded volume (CZK bn) 508.858 643.151 585.712 529.908 628.022
- State bonds 433.280 616.554 555.196 510.495 605.867
- Municipal bonds 0.748 0.195 0.033 0.699 0.551
- Corporate bonds 8.118 5.156 14.348 6.044 3.817
- Bank bonds 9.931 9.701 7.376 8.242 9.269
- Mortgage bonds 56.781 11.545 8.759 4.428 8.520
Number of issues (year end) 132 121 116 106 95
OTHER PRODUCTS
Structured products (total volume, CZK mn) 1,229.477 469.053 261.071 170.173 133.938
(number of products) 41 49 67 44 81
Futures (traded volume, CZK mn) 1,879.861 688.865 201.555 189.654 194.286
(number of series) 6 6 6 6 6
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