Polish and Israeli stock exchanges on verge of signing letter of intent for cooperation

The Warsaw Stock Exchange (GPW). Rafał Guz

The agreement will help the Polish stock exchange to attract Israeli start-up and technology companies to invest in the Polish stock exchange.

The Warsaw Stock Exchange (GPW) and the Tel Aviv Stock Exchange (TASE) are expected to sign a letter of intent for cooperation in the coming days, which will help the Polish stock market realize one of its goals to attract start-ups and advanced technology companies to invest and trade in the local market.

According to a report in Rzeczpospolita, the agreement was supposed to have been signed last Friday by Warsaw Stock Exchange CEO Marek Dietl and CEO of the Tel Aviv Stock Exchange Ittai Ben-Zeev, but so far no official announcement has been made. 

A spokeswoman for TASE declined to comment to The First News’s request for confirmation that the agreement had either already been signed or would be signed soon.

The GPW announced its intention to purchase 71.7 percent of the Tel Aviv Stock Exchange at the beginning of 2018 as part of a privatization process announced by the Tel Aviv Stock Exchange, which sought to sell a large share of it to a foreign Stock Exchange for a minimum price of $ 500 billion. 

The tension between Poland and Israel following the IPN law led to the suspension of negotiations between the heads of the Tel Aviv and Warsaw Stock Exchange, but these resumed in recent weeks after Poland announced that it would send the law for consideration to the Constitutional Court, and following Polish PM Mateusz Morawiecki’s subsequent announcement of changes in the law.

The agreement will help the Polish stock exchange to attract Israeli start-up and technology companies to invest in the Polish stock exchange. 

Israel is often referred to as the "Start-Up Nation" and the heads of the Warsaw Stock Exchange set themselves the goal of attracting companies in these fields to the GPW, as well as many companies in different fields as infrastructure and Raw Materials. The two Stock Exchanges may also establish a joint mechanism for exchange of information and experience in trade.

Polish investors will also be able to benefit from the privatization plan the Israeli government is planning for large energy companies. 

The Tel Aviv Stock Exchange is not large enough to conduct large-scale trading, and the heads of TASE announced that they are interested in cooperating with large stock exchanges around the world. 

Such cooperation could also help the Warsaw stock exchange to create its own crowdfunding platform. 

Another aspect that makes the agreement attractive in terms of the Warsaw Stock Exchange is the fact that TASE  is considered close to the US Nasdaq, and the heads of the GPW see this as an opportunity to approach new markets from different parts of the world.