The stock market of the Czech Republic has a centralized nature. The securities market in the Czech Republic is regulated by the Commission on securities. In the Czech Republic for the organized stock jobbers Prague Stock Exchange (PSE) exists. PSE has exclusively regulative and monitoring functions, Exchange Arbitration Court exists here.
Prague Stock Exchange has its own exchange indexes:
PX-50, PX-D, PX-GLOB and BI-03, BI-04 … -BI-19 (branch
indexes).
All securities trading on PSE is devided into four markets. Such
division is a peculiar listing of the organized securities
market in the Czech Republic.
The first -" Main market" (has existed since September, 1995), on
which the trade with the most prestigious and most liquid securities is providing. It is clear that requirements for the emitters and securities in this market are the most strict.
The second market is
"the Additional market"is invoked to give possibility to the
broad audience of the Czech emitters to present full information
about themselves. In this market the state securities are also
quoted.
The requirements to the emitters and securities in this market, is a little bit smaller than on "the main market".
The third market is "the New market" (has existed since September, 1999), on which securities of the emitters with a short history are traded. The requirements to the emitters and securities on this market is lower than for the first two markets. The style of this stock market differs from traditional " main market" and reminds the trading methods of the American exchanges.
The fourth market is
"the Free market", on which non-quoted securities are traded. To the emitters of these securities there are no such requirements concerning information and terms of trade, as to the first three markets. The pavment for the exchange services is minimal.
Except
the Prague Stock Exchange the trade system () over-the-counter systemRM-System is opereting in the Czech Republic.
The system has a rather extensive network of the representations, where registered person (natural or legal), including
non-residents, can be engaged in security trading. The registration of such "unorganized" participants of the stock
market are carried out by the Securities Center - the Czech Republic. RM-System has its own index - PK-30.
The trade
system RM-Sistem has an own index - PK-30. The main goods of the
stock market are the liabilities of the foregn institutions and securities of the Czech emitters. As a rule, the incomes from the means arrangement to the liabilities are higher to securities of the emitters and are 8-15 per cent and 4-5 percent annually.
The main
participants of the Czech stock market are the investment companies,
funds, brokers and banks. The Czech banks, unliket the Ukrainian
stock market, are not the main market participants of the capital market.
It is
conditioned by the fact that capital of the investment companies and funds is sufficient for activity on the stock market, and
the banks executethe professional function, i.e. only maintain
"the process of speculative operations".
The stock market in the Czech Republic is rather organized. A lot of
affiliations and associations are operating here. The
Union of Investment Companies,
Association of the
stock jobbers and other provide active activity in the Czech Republic.
It is necessary to note, that exchange and near-exchange information
is rather accessible and the activity of the above-mentioned exchange institutions is rather transparent.
The
liquidity of the Czech stock market is rather high.
It is connected first of all of with "portfolio" of the investment companies and funds availability and high-liquid assets (including foreign assets).
