- Regulations
- Liquidity support programme
Resolution No. 1068/2019
of the Warsaw Stock Exchange Management Board
dated 10 October 2019 (as amended)
concerning the Liquidity Support Programme
and the Lower Liquidity Space
(text according to legal condition at 1 December 2019)
NOTE: Only the Polish version of this document is legally binding. This translation is provided for information only. Every effort has been made to ensure the accuracy of this publication. However, the WSE does not assume any responsibility for any errors or omissions.
Pursuant to § 20.5 of the Exchange Articles of Association and § 174a - § 174c of the Exchange Rules, the Exchange Management Board resolves as follows:
§ 1
In order to support and improve the liquidity level of shares listed on the GPW Main Market, the Liquidity Support Programme is established and the principles of classification in the Lower Liquidity Space are determined.
§ 2
1. Issuers of shares whose trading has a low liquidity level in the meaning of point 2 may join the Liquidity Support Programme.
2. A low liquidity level shall be understood as a situation where, in more than one half of all trading sessions in the last three calendar months before the date of periodic verification (including the month of the periodic verification but excluding the last three trading days of that month), the number of transactions in the shares of the company on the electronic order book is less than 5 transactions per session.
3. Whenever this Resolution refers to shares, this shall be construed to include rights to shares.
§ 3
1. Under the Liquidity Support Programme, an issuer shall:
1) ensure the existence of a valid commitment of a market maker to perform the market maker’s functions for the shares of such issuer according to the requirements and additional conditions of market making laid down in Exhibit 12 to the Detailed Exchange Trading Rules in the UTP System,
2) create and maintain an investor relations section on the corporate website and present information on such website in Polish and in English according to the scope and structure defined in the Model Investor Relations Service presented on the website: http://naszmodel.gpw.pl/.
2. An issuer shall immediately inform the Exchange about joining the Liquidity Support Programme.
§ 4
1. Two trading days before the last trading day in March, June, September, and December each year, the Exchange shall perform a periodic verification of liquidity of shares of companies listed on the exchange and classification in the Lower Liquidity Space unless the issuer joined the Liquidity Support Programme or the issuer’s shares are no longer classified in the Lower Liquidity Space.
2. The issuer’s failure to perform or inadequate performance of activities under the Liquidity Support Programme shall be the basis for classification of the issuer’s shares in the Lower Liquidity Space.
§ 5
1. If an issuer’s shares are classified in the Lower Liquidity Space:
1) (revoked);
2) the shares of the issuer shall be moved to the single-price auction system with a double fixing of the single price, subject to the relevant provisions of the Detailed Exchange Trading Rules in the UTP System,
3) the name of the shares of the issuer shall be marked with a specific designation in the Exchange information services and the GPW Daily Bulletin (Ceduła Giełdy Warszawskiej) - as of the third trading day after the date of publication of the classification of the shares in the Lower Liquidity Space for information of trading participants.
2. If an issuer’s shares are classified in the Lower Liquidity Space, such shares may be removed from index portfolios on the terms and conditions defined in the regulations of GPW Benchmark S.A.
§ 6
1. Issuers whose shares were classified in the Lower Liquidity Space may at any time join the Liquidity Support Programme, subject to sub-paragraph 4.
2. Immediately upon joining the Liquidity Support Programme, the shares of an issuer shall no longer be classified in the Lower Liquidity Space.
3. The provisions of § 3 sub-paragraph 2 shall apply accordingly.
4. Issuers whose shares were classified in the Lower Liquidity Space due to failure to perform or inadequate performance of activities under the Liquidity Support Programme may re-join the Liquidity Support Programme not earlier than on the lapse of three months after the date the shares were classified in the Lower Liquidity Space.
§ 7
Information about classification or discontinuation of classification of shares in the Lower Liquidity Space and about the issuer joining the Liquidity Support Programme shall be published for information of trading participants in a communiqué no later than on the trading day following the date of periodic verification or following the submission of information about joining the Liquidity Support Programme by the issuer to the Exchange, respectively.
§ 8
Issuers participating in the Liquidity Support Programme shall inform the Exchange about leaving the Programme and discontinuing the performance of obligations under the Programme.
§ 9
The provisions of this Resolution shall apply to issuers listed exclusively on the GPW Main Market.
§ 10
1. Resolution No. 502/2008 of the Warsaw Stock Exchange Management Board dated 23 June 2008 (as amended) shall become null and void; however, the consequences of classification of shares of issuers in the Lower Liquidity Space or of issuers joining the Liquidity Support Programme under that Resolution shall remain in force and effect unless they are contradictory to the provisions of this present Resolution.
2. Resolution No. 672/2008 of the Warsaw Stock Exchange Management Board dated 9 September 2008 shall become null and void.
§ 11
1. This Resolution shall come into force on 1 January 2020, subject to subparagraph 2 and 3.
2. The first periodic verification and classification of shares under this Resolution shall take place on 27 March 2020.
3. In the case of issuers whose shares have been listed for less than one calendar quarter, the first periodic verification and classification of shares under this Resolution shall take place upon the lapse of the first full calendar quarter when the shares have been listed on the GPW Main Market.