Budapest Stock Exchange
|Budapest Stock Exchange|
|Key People||CEO György Mohai|
|Products||BUX, BUMIX, CEOP20, DWIX|
The Budapest Stock Exchange in Hungary is an electronic trading exchange listing mostly Hungarian equities, bonds, currencies and derivatives. A year after their acquisition by an Austrian-based exchange operator, the BSE and the Budapest Commodities Exchange merged in 2005 bringing all equities, bonds and derivatives trading to the BSE.
The Budapest Stock Exchange was ranked as the world's 40th-largest derivatives exchange by volume in 2010, falling three positions from the previous year, according to the annual volume survey published by the Futures Industry Association (FIA). The FIA report, published in March of 2011, notes that the exchange's total volume for 2010 was up by 0.1% from the previous year, reaching about 11.81 million contracts.
The Budapest Stock Exchange (BSE) originated as the Pest Commodities and Stock Exchange in 1864 but closed following the start of World War II. It re-opened in June 1990 with an open outcry system after the collapse of Hungary's communist government and was followed a month later by the Budapest Commodities Exchange (BCE), which initially listed grain futures.
The BSE had listed six shares by the end of its first year of trading while the BCE added livestock futures in 1991 and currency contracts in 1993. From 1995 until 1998 the BSE traded securities partly by open outcry but after introducing the MultiMarket Trading System (MMTS) in 1998 the exchange closed its physical trading floor in 1999, followed a year later by the BCE.
In 2004 a majority stake in BSE was acquired by a group of Austrian investors headed by Wiener Börse, owner of the Vienna Stock Exchange, and a group of banks led by Österreichische Kontrollbank AG. A year later the group merged its newly acquired Budapest Commodities Exchange with the BSE, introducing derivatives trading to the BSE. In late 2008 Wiener Börse raised its stake in the BSE an additional 25% for a total stake of 37.7% while the Austrian group's total stake in the BSE now stands at 68.8%. Wiener Börse also owns large majority stakes in Slovenia's Ljubljana Stock Exchange and the Prague Stock Exchange and recently announced that it would introduce a single trading system linking them with the BSE by 2010 or 2011.
CEO György Mohai has twice served as the BSE's acting CEO: in 2006 prior to the appointment of previous head Árpád Pál and for three months in 2008 prior to his own permanent appointment to the top job in June. Mohai had previously spent four years as the BSE's deputy CEO and the previous two years (2002-2004) as an advisor to the exchange. Prior to that Mohai worked for ten years in the securities industry and spent 13 years as an academic and research fellow, including at Budapest's Corvinus University. He is a board member of the Central Clearing House and Depository and the Investor Protection Fund.
The BSE has two main domestic equity indexes: the official equity BUX, the benchmark for the Hungarian share market, and the small-cap and mid-cap focused BUMIX. The BUX consists of between 12 and 25 stocks - revised twice per year - that satisfy several exchange requirements based on size and liquidity. The exchange also owns and calculates the Central European Blue Chip Share Index (CETOP20) and the Daiwa-MKB Treasury Bill Yield Index (DWIX).
The Budapest Stock Exchange ranked number 37 in 2009 in the Futures Industry Association's global list of top 53 derivatives exchanges measured by volume, down 11.8% on 2008's volume figure. The FIA list, published in early April 2010, reports that that the BSE's total volume for 2009 fell to 11.8 million from 2008's figure of 13.4 million.
The BSE caused a stir among traders and investors recently by suspending trading January 29, 2009 in Hungarian oil giant and BSE blue chip MOL Rt at the company's request. The BSE resumed trading in MOL shares February 2 after MOL's annoucement January 30 that it was acquiring Croation energy company INA.
- 2010 Annual Volume Survey. Futures Industry.org.
- Brief history of the Exchange. Budapest Stock Exchange.
- The Vienna Stock Exchange increases its stake in the Budapest Stock Exchange. Wiener Börse.
- Wiener Boerse plans single trading system for Vienna, Budapest, Ljubljana, Prague. Portalino.
- Previous managers. Budapest Stock Exchange.
- Curriculum Vitae: György Mohai. Budapest Stock Exchange.
- Indices. Budapest Stock Exchange.
- 2009 Annual Volume Survey. FIA magazine.
- Energy company MOL signs deal with Croatian government. MonstersandCritics.com.
- Budapest bourse says MOL trade to resume on Feb 2. Reuters.