For several years now, there has been talk of whether it is practical to operate the stock exchange and the over-the-counter market in the form of the RM-System on such an underdeveloped capital market as the Czech Republic is. The possibility of investing for small investors and several innovations introduced last year, but speak for the preservation of the existing model. And what is it going for ns RM-Systm this year?
RM-Systm was established in 1993 as an organizer of the over-the-counter stock market. It is based on the customer principle and access to it is not limited in any way. Since 2002, the company has been authorized to sell business to banks and securities dealers. RM-S therefore, I will sell transactions made outside the public markets, custody transfers, investment instrument loans made outside the public markets, repo operations and reverse repo operations, buy / sell transactions and other transfers and transfers of investment instruments. Similar to the stock exchange, there is an official market and a free market (at BCPP two unlisted markets), where issuers do not have to fulfill written information obligations.
In addition to a wide range of branches, investors have the opportunity to trade securities so electronically. Through the Wobchod service, clients can trade via the RM-System website anywhere they can connect to the Internet. The second option is to install the RM-S / Internet program, where the data transfer is secured by a personal electronic certificate.
Although the volumes of trades on the RM-System accounted for only a small percentage of the total volume of trades on the public markets of the US, its proponents have several arguments at hand for which it is appropriate to maintain the current situation with the two markets. In advance, it is a possibility of trading in shares for small investors who do not have enough funds to buy shares in lots through SPADu on the PSE. According to, there is, of course, the possibility to trade in shares that investors have left over from privatization coupons or trading in real time (T + 0).
Pithnou gave news to investors?
Like the stock market, the RM index, which includes the ten most liquid shares on the RM-System, reached historic highs at the end of last year. During 2006, 25 thousand investors were active on the market (except for investors trading through brokers), and recently there has been a growing interest in investing via the Internet (a total of around seven thousand investors are registered). The problem with the RM-System in recent years, however, was the fact that stocks did not rise at the level, but declined very quickly. As the overall volume and volumes of trade have shown a declining trend in recent years, RM-S is trying to record new customers with various innovations.
with double share. Who is to blame?
In the past year, a new way of trading in lots was launched, the so-called EasyClick order. Lot sizes are designed to be available to small and medium-sized investors. Liquidity is provided to market makers and instructions can be given both in person and via the Internet. In addition, from June, auction trades, such as the market segment, are extended until 17:00. This allows trading even after a trade has been closed on the stock exchange.
Co ns ek letos?
One of the big inconveniences, which is also one of the pins for which RM-Systm is still an underestimated market, is the low liquidity of most stocks traded on it. As it was changed, trades on RM-S make up only a negligible percentage of the total trading of shares in the US (the main market of the stock exchange in 2006 – 830 billion CZK, auction shops at RM-S in 2006 – K 3 billion).
However, this could be changed in the future by a novelty, which should mean outside the competitiveness and attractiveness of the over-the-counter market in the eyes of investors. This novelty should include several foreign share issues. According to the marketing director of RM-System Jiho Vodika, the first foreign titles should appear on the market in the middle of this year. This year it will have ten and twenty issues. We want to see the new shares on RM-S gradually in order to continuously create liquidity among small investors, which will be supported market maker (market maker) from a number of professional stockbrokers, me Vodika.
Foreign issues should now be available, which are now traded on the stock exchange, such as Zentiva, Erste Bank, Orco or ECM, and later should be followed by shares of major foreign companies operating in the Czech Republic (Siemens, BMW, etc.). It should allow it to be connected to a foreign Clearstream deposit. In addition to the very birth of the equity portfolio, investors should be so interested in the fees. These are not fixed yet, but we assume that for small and medium-sized companies, the RM-S market will be the most suitable way of trading shares to Vodik in addition to fees. That sounds promising, but so far it’s just promises.
The interest of the investor could be the possibility of trading in foreign shares in the house. According to the representatives of RM-System, it is not so much a question of RM-Systm competing with a large foreign stock exchange, but of creating a market with foreign shares for small and medium-sized investors in Czech crowns.