WARSET system

Since November 17, 2000, quotations on the Warsaw Stock Exchange have been taking place in the new WARSET system (WARsaw Stock Exchange Trading system).Such a system is also used in Paris, Brussels, Amsterdam, Chicago, and Singapore.WARSET provides full automation of order transfer and transaction execution, efficient access to the trading system for market participants, and a wide range of means for obtaining information about the market situation.Moreover, WARSET gives investors more ways of placing orders on-line-brokerage IT systems are now so well integrated with the WSE system that the brokerages' role amounts to checking the correctness of orders placed by investors.

In each of the WARSET quotation systems, the transaction unit is one security.A characteristic of WARSET is publication of the so-called Indicative Opening Price (IOP) during the pre-opening, pre-closing and balancing phases.This is the price of a security calculated for a given moment. At the moment of opening, i.e. determination of the first price (the last price in the case of the closing phase), the price at which the first of these transactions is concluded is the last published IOP.

In establishing the price of a given security, the following objectives are taken into account:a) maximisation of trading volume, b) minimisation of the difference between the numbers of securities in sell and buy orders possible to execute at a given price, c) minimisation of the difference between the determined price and the reference price.