The Hungarian Stock Exchange, the ancestor of today’s Budapest Stock Exchange
(BSE) started its operation on 18 January 1864 in Pest. Although the institution
was set up as a stock exchange, four years after its inception it acquired the
Grain Hall, the centre of grain trade, becoming the newly created Budapest Stock
and Commodity Exchange (BSCE). Following 1889 the stock prices of companies listed
on the Budapest Stock Exchange were also published in Vienna, Frankfurt, London
and Paris, attesting to the international importance of the BSE. From the1890s
Hungarian government bonds were regularly traded on the stock exchanges of London,
Paris, Amsterdam and Berlin.
Following World War II, after the nationalisation of the majority of private
Hungarian firms, the government officially dissolved the Budapest Stock and Commodity
Exchange, and the exchange’s assets became state property.
After the re-establishment, on 21 June, 1990, the BSE re-opened its doors with
41 founding members and one single equity, IBUSZ, the Budapest Stock Exchange.
The open-outcry system of the physical trading floor that characterized the spot
market functioned with partial electronic support until 1995. From 1995 until
November, 1998 securities trading took place concurrently on the trading floor
and in a remote trading system, when the new MultiMarket Trading System (MMTS),
based entirely on remote trading was launched. The traditional “battlefield rumble”
of the physical trading floor ceased within a year by September 1999, at which
time physical trading was entirely replaced by the electronic remote trading platform
of the derivatives market.
In April, 2000, after twelve years of operations as an independent legal person,
the new BSE Council decided to convert to a business association in order to maintain
and strengthen its competitive position.
The year 2004 brought some decisive events in the life of the Exchange. A major
restructuring took place in the ownership structure of the BSE, involving the
purchase of a majority stake in the Exchange by strong Austrian banks, together
with Wiener Börse and Österreichische Kontrollbank AG.
Due to the integration of the activities of the Budapest Stock Exchange and of
the Budapest Commodity Exchange, as of 2 November 2005, commodity trading also
started on the BSE.
Since 14 January 2010, the BSE is a subsidiary of the CEESEG AG holding company,
that owns 50,45% of the BSE. The joint average monthly turnover of the Group
is around two-thirds of equity turnover in the CEE region (July 2009). From one
single source, the Group offers both information and easy access to four attractive
markets with long-term growth potential.
Source: Birth of an Exchange
Authors: Tamás G. Korányi - Nóra Szeles
Edited by Tamás G. Korányi
Event calendar from the beginning until today
Headquarter's of the Budapest Stock Exchange
1864-1914: An Exchange is born
1914-1948: From one world war to another
From 1990 until today: Rebirth
Present and previous managers of BSE