Ljubljanska borza, d. d., Ljubljana
Ljubljana Stock Exchange aligning with international capital markets
The future of the Slovene capital market lies in its linking closer with international markets. This can provide listed companies new means of raising funds and thus ensure more varied funding, as well as offer investors and investment firms higher liquidity and wider product portfolios.
The Ljubljana Stock Exchange (LJSE) has prepared the outline for a possible future development of the Slovene capital market. It involves LJSE's alignment with international markets, whereby Slovene blue chips would double list on the Vienna Stock Exchange (VSE) and Slovene trading members additionally become members of the VSE. Such an alignment would give Slovene investment firms and investors new investment opportunities and offer Slovene listed companies straightforward access to foreign investors, while strengthening the existing liquidity of the LJSE market. Due to its high liquidity, good infrastructure and wide pool of international investors who know the region of Central and South-East Europe well, the VSE is a reasonable international upgrade for the LJSE market. The VSE has a market capitalization of EUR 87 billion and EUR 5.5 billion of monthly trading volume generated by 97 trading members, 56 of which are international. The VSE has already started promoting top Slovene listed companies at its road shows, and due to the shared Xetra trading platform LJSE market data are now readily available to all investors trading at the VSE.
The LJSE therefore proposes to all Slovene capital market stakeholders to act together and foster the market's growth by working toward its greater alignment with international markets. In addition, the LJSE proposes that parallel to Slovene companies' double listings abroad Slovene investors be given the chance to make investments comparable to those in other EU countries. One way to make this happen is to set up a system stimulating long-term saving within the 2nd pillar of the pension system and establish private savings accounts, like P accounts.
It will take time and coordinated measures by all Slovene capital market participants as well as the state to improve the market situation in the long-term. However, we can take the first step toward linking markets and gaining better international recognition for the Slovene market as soon as at the beginning of next year.
Said Andrej Šketa, President of the Management Board of the LJSE, with respect to increasing the recognition of Slovene companies among international investors, and opening new possibilities for domestic members and investors: »While remaining fully committed to the Slovene capital market, the Ljubljana Stock Exchange together with the Vienna Stock Exchange wants to offer Slovene blue chips the chance of double listing on an internationally established and well accessible market.«
Ljubljana Stock Exchange