Warsaw and Budapest Stock Exchanges team up for new commodity markets

A new clearing house looks set to strengthen and accelerate the development of commodity markets in CEE and SEE.

The Warsaw Stock Exchange (GPW), the Polish Power Exchange (TGE), the Hungarian National Bank and the Budapest Stock Exchange will team up to create a leading Central, Eastern, and South-Eastern European (CEE/SEE) clearing house for commodity markets which can compete with its counterparts in Western Europe.

Known as Central Post-trade Solutions (CPS), the clearing house will also cooperate with multiple local energy and gas markets in CEE/SEE countries by providing services in new projects implemented in this part of Europe.

CPS is set to be operational by the end of September 2022, according to a term sheet signed by the GPW, TGE, the Hungarian National Bank and the Budapest Stock Exchange on December 16.

According to Marek Dietl, the president of the management board of the GPW, the integration of Polish and Hungarian business within CPS will generate synergies in the development of a comprehensive clearing offer for the entire region.

“The potential transaction will allow for the formation of an entity with a comprehensive offer for commodity markets, including markets in electricity, gas and agricultural products,” he says. “The cooperation with our Hungarian friends will allow TGE to introduce new business lines and provide many benefits to other participants in CEE/SEE.”

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