Foreign shares are finally available to ordinary people, and even in crowns

In the past, RM-Systm was considered to have increased the market with low liquidity and limited stocks. Although this is not true for a long time, the latest news and especially new titles, launched on this over-the-counter market, will certainly surprise even the most skeptical.

Relatively recently, there has been much speculation about whether it is necessary and efficient to operate two securities markets within our small and still underdeveloped market. In the last few years, the stock exchange has unequivocally confirmed its legitimacy; the over-the-counter RM-Systm is still fighting for good name and respect among investors.

And it looks like that, in recent years he has been doing quite well. Although in previous years the volume of trade gradually decreased, in 2007 there will probably be a positive turnaround (for half a year the volumes were dark the same as for the whole of last year, ie 3.5 billion CZK). According to Jiho Vodika, RM-S’s director of strategy and marketing, volumes could be in the breaths of billions per msc. It is a long way to go.

The service of EasyClick, through which investors can buy shares in lots (a predetermined minimum number of shares), received a very positive response. Liquidity is secured here, similarly to the PSE, by a market maker, but unlike the stock exchange, lots are set so that they are also available to retail investors (up to 100,000 K). The attraction for investors is also a significant reduction fee (or so abolished at least in the fee and the fee for special instructions), the possibility to trade until 17:00 and the sale in real time.

At present, according to Vodika, around 50,000 people trade directly on the RM-System. It is important to note that the number of regular investors is growing and the number of those who go to RM-Systm is declining only due to actions from privatization coupons.

Foreign shares on RM-System

A further step towards increasing the attractiveness of the RM-System among investors should the long-term admission of foreign stocks to trading on this over-the-counter market. The first owner is the shares of the German company Deutsche Telekom, which has been traded on the RM-S market since last Wednesday. RM-Systm chose this company for several reasons. The Czech public is known as the owner of the mobile operator T-Mobile, operating in the interesting segment (IT and telecommunications), has a significant position in the world and the tenics on the cake is the dividend that the company has paid to its shares in recent years. The shares can even be bought using the debt (and up to 70% of the volume of trade), which is mediated by Fio (so far the only market maker on RM-S, but in the near future should be given to securities traders).

The shares will be traded in esk crowns. Although the share price should not be directly dependent on developments in the foreign market, it can be expected that the differences will not be large. The title will be traded on a separate RM-S market, nor will it be a preliminary order to a foreign stock exchange through a broker. The shares are kept in a separate register (SVYT Systm pro Vypodn Transakc) kept by RM-Systm, which is connected to the European deposit Clearstream. Orders can be entered in person or via the Internet.

But this year it seemed that investors would have a lot to choose from in foreign events. Unfortunately, the promises to drink ten and twenty foreign titles to go this year will remain unfulfilled. The reasons for the RM-System are due to the slowdown in the process of accepting new titles on the domestic market, in addition to the complexity of the process itself, so that they want to provide each title with quality service, liquidity should be created. Logically, the weight is that, depending on how Deutsche Telekom shares take over, they will follow the given titles.

The shares currently traded in Europe are gaining momentum. Shares traded in the European Union can be admitted to trading in another EU country (but not necessarily European shares). According to Jiho Vodika, investors could go this year to prove the action of a large company.

A good first for investors is the introduction of stock trading, which entered the Prague Stock Exchange through IPOs, or are also listed on other stock exchanges. The offer included titles such as Zentiva, Erste Bank, Orco, CME and AAA Auto, which was listed on the stock exchange at the end of. Investors can buy these shares directly, without the need for an agent, as is the case on the stock exchange.

Through the distribution of services, a trade in structured investment products could be introduced. Since RM-Systm has obtained a derivative license, it takes weight or certificates, for example. However, only the former are considered. Since RM-Systm does not want to act as a pm competitor of the PSE (which, due to the volume and exchange of currency and medium investors, it does not have), the certificates traded on the domestic stock exchange do not take into account, but rather those traded on other markets.

Heath IM Provement