The recent monopolist of the Ukrainian stock market, "First Stock Trading Exchange" (PFTS)The merger with its main competitor, which is expected to take place soon, has been gradually losing its position over the past two years, "Ukrainian Exchange (UX)The final result of the unequivocally leading marketplace in the past is summed up in this article.
Creation of the PFTS
Registered at the end of 1995 as an association of professional stock market participants in Ukraine, PFTS Exactly 10 years later it became a stock exchange in the form of an open joint-stock company. It is worth mentioning that at first the first letter in the name was deciphered as "pozabirzhova", i.e. "over-the-counter", but in 1997, without changing the abbreviation was replaced by "first".
Creation of the PFTS was welcomed by Ukrainian players on the stock market at that time, because its model assumed the possibility of self-regulation, namely it allowed the influence of active participants on the management of the site and the promotion of trading.
The exchange consists of the "Bids Market" and the "Quotes Market". The PFTS NEXT trading system used on PFTS is advanced and built on the basis of electronic technologies of NASDAQ OMX and MICEX.
PFTS - the first stock exchange in Ukraine
Up to 2009 "First Stock Trading Exchange" was the unconditional favorite on the stock market in Ukraine, it hosted up to 90% of securities trading volumes in the country. However, the situation began to change drastically after the appearance of a new player in the industry - "Ukrainian Exchange, 49% shares of which were owned by the RTS.
The UX was quick to exploit the shortcomings of its leading competitor, namely its lack of a real bidding market, as well as its lack of attention to Internet trading. The situation for PFTS was further exacerbated by an unstable trading system that often failed, as well as the lack of transparency of the exchange, which its players complained about. All these factors in the aggregate led to the fact that in 2009 UX swiftly gained superiority in the bidding market in Ukraine, leaving its main competitor to dominate in the quotation market and in trading bonds.
In Search of the Lost
Trying to regain the lost advantage, the PFTS management took such progressive measures as the connection of Internet trading and the transition to a new system, PFTS NEXTHowever, these actions proved to be overdue. A breath of fresh air for the stock exchange was considered purchase of a controlling stake in PFTS by MICEX structuresThe perennial struggle with the RTSBut this event did not bring back the PFTS monopoly status. But even this event did not bring back the PFTS monopoly status.
The strengthened competition with "UB" was estimated by analysts as a positive factor for the Ukrainian market of securities transactions, which will allow it to move faster to the leading Western trading technologies. However, the recent tendencies in the world stock market are aimed at centralization and merger of its institutions. Take, for example, tandems NYSE and Euronext, NASDAQ and OMXplanned in the near future Union of the London and Toronto Stock Exchanges. Russia is no exception, where the eternal adversaries, MICEX and RTSThe Ukrainian government will soon merge into a single institution. And this means that their Ukrainian assets will also, PFTS and UBIn this case, Ukraine will have a monocentric model of stock market development. In this case, Ukraine will have a monocentric model of stock market development.
PFTS Stock Exchange Index
PFTS index has been calculated since October 1, 1997 on the basis of a basket of securities of the 20 most liquid issuers. Despite the fact that this index is the main indicator of the Ukrainian stock market, many experts point out that it does not reflect the trends of its economic development. Thus, in their opinion, in PFTS index The banking sector is an insufficiently large percentage.