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Budapest Stock Exchange (BSE)

posted onNovember 20, 2017

The Hungarian Stock Exchange, the ancestor of today’s Budapest Stock Exchange (BSE) started its operation on 18 January 1864 in Pest on the banks of the Danube. When the exchange was launched, there were 17 equities, one debenture, 11 foreign currencies and 9 bills of exchange listed. By the turn of the century, there were already 310 securities traded on the exchange; by the beginning of World War I, this increased to almost 500. The Hungarian Stock Exchange had been operating as one of Europe's leading exchanges for 80 years, however, in 1948 it was disbanded after the nationalizations.

The first official milestone in the history of the newly created Budapest Stock Exchange was the government’s decision to give green light for the preparation of the Securities Act of 1989. The draft bill was submitted to Parliament in January 1990 and came into force on 1 March. At the same time that the bill came into force on 21 June, 1990, the BSE held its statutory general meeting and the Exchange re-opened its doors.

In 2007, BSE agreed to move to abolish floor trading, the trading today takes place via the Xetra system, with redundant floor brokers taking on the role of market-makers. In January, 2010, BSE became a member of the CEE Stock Exchange Group. On 20 November 2015 the Hungarian National Bank (Magyar Nemzeti Bank – MNB) concluded a sales contract with the Austrian CEESEG AG and Österreichische Kontrollbank AG, the entities that to date held a 68.8 per cent ownership in the Budapest Stock Exchange (BSE). With this transaction the MNB obtained controlling ownership in the national stock exchange. The BSE is member of the World Federation of Exchangesand the Federation of European Securities Exchanges.

The four main activities of the stock exchange:

‎Listing services
The BSE allows economic entities to acquire the financial resources required for their expansion in a cost-effective way. In addition, the BSE provides access to the dynamically growing assets of domestic institutional investors and to domestic investor savings. The exchange also provides investors with the simplest access to the global investor community.

‏Trading services
The BSE acts as the main platform to trade financial instruments. Currently, over 40 domestic and foreign broker companies take part in the exchange trading.

‎Dissemination of market information
The Exchange supplies real-time and accurate trading data of its listed securities and provides news services on issuers and section members. 

Product development
The BSE provides a trading opportunity for financial innovations, and offers a wide and constantly growing product range for investors on the futures and option markets. Index futures and options are calculated directly by the exchange. Investors seeking hedging opportunities or gearing can select from a wide array of individual stocks and currency, interest rate and commodity derivatives.

Phone: +36 1 429 6700 
Fax: +36 1 429 6800 
Postal address: H Budapest, P.O. Box 24.

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