Gielda Papierow Wartosciowych w Wrszw : GPW Has Completed the First Classification in New Segments of the NewConnect Market

2016-09-29 14:35:42

Warsaw, 29 September 2016

• On 28 September 2016, GPW completed the first classification in the new segments of the NewConnect market: NC Focus, NC Base and NC Alert, which have replaced the existing segments: NC Lead, NC HLR and NC SHLR;
  
• The classification has put 90 companies in the NC Focus segment, 250 companies in the NC Base segment and 68 companies in the NC Alert segment.
  
• The market-making conditions applicable to Market Makers supporting trade liquidity in financial instruments listed on NewConnect have been modified in line with the new segmentation;
  
• The new segmentation of the NewConnect market is a key element of the NewConnect 2.0 project designed to improve trade safety and market transparency.

Approved in June 2016, the new segmentation rules of the NewConnect market are a key element of the NewConnect 2.0 project which was designed to improve confidence in NewConnect and make it more attractive to various investor groups. Subsequent steps in the NewConnect 2.0 project will include the development of a new website of the NewConnect market and a reform of the Best Practice for Companies Listed on NewConnect and the Best Practice for Authorised Advisers.

The terms of the new segmentation of the NewConnect market have been developed by the Exchange in close co-operation with the Council of Authorised Advisers. The introduction of the new segments: NewConnect Focus (NC Focus), NewConnect Base (NC Base) and NewConnect Alert (NC Alert), will assist investors in identifying companies listed on NewConnect. The classification of companies in the NewConnect market segments is not a ranking or GPW's recommendation to invest or not to invest in financial instruments of such companies. Investors should independently decide whether an investment in financial instruments of a company covered by the new classification is right for them. Such assessments should always take into account, in particular, the legal, economic and financial position, as well as the assets of a company.

'Today GPW has completed the first verification and classification of companies in the new segments of the NewConnect market. I do believe the implementation of the new segmentation rules will help improve the market transparency and make it more attractive both to issuers and investors,' said Professor Małgorzata Zaleska, President of the Management Board of GPW.

The classification conditions in the NC Focus and NC Alert segments, as a rule, are based on detailed qualitative criteria including mainly the financial standing of the company and its compliance with the obligations imposed by its presence on the NewConnect market. The segment NC Base includes all other companies, i.e. companies not classified in the NC Focus and NC Alert segments, as well as companies listed on NewConnect for less than 12 months.

The first classification has put 90 companies in the NC Focus segment, 250 companies in the NC Base segment and 68 companies in the NC Alert segment.

As a result of the classification, the shares of issuers put in each respective segment will have a special designation in the Exchange's information services and on the website www.newconnect.pl, as of the third trading day after the date information about the classification is published to trading participants. Furthermore, the shares of issuers put in the NC Alert segment will be traded in the single-price auction system and will be removed from index portfolios as of that date.

The market-making conditions applicable to Market Makers active on the NewConnect market have been aligned with the new segments of the NewConnect market. Furthermore, under to the new rules, all issuers of financial instruments listed on NewConnect must have a Market Maker supporting the trading liquidity in financial instruments of the issuer.

NewConnect currently lists 408 companies, including 9 foreign, with an aggregate capitalisation of ca. PLN 8.9 billion.

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Warsaw Stock Exchange (GPW) is the biggest securities exchange in Central and Eastern Europe. GPW operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. GPW is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, GPW is a public company listed on Warsaw Stock Exchange. For more information, visit http://www.gpw.pl