The highest decision-making forum of the exchange is the Annual General Meeting (AGM). Its scope includes the election of the Board and Supervisory Board members.  

Board of Directors and Supervisory Board

The Board of Directors is the company’s executive body. The mandate of its members is to serve a three-year term following their election. Current members will serve their term until the upcoming 2014 Annual General Meeting. As set forth in the Exchange Charter, the Board of Directors consists of 3 to 7 members (7 at present), from among whom the members elect the Chairman and the Deputy Chairman of the Board with a simple majority vote.

The Supervisory Board oversees the company’s management. Members of the Supervisory Board also serve a mandate of three years, currently until the 2014 AGM. On the basis of the BSE Charter, the Supervisory Board consists of 3 to 6 members (3 at present), elected at the general shareholder meeting. Supervisory Board members cannot be employees of the Budapest Stock Exchange Co. Ltd.

Organisational structure

The Exchange’s organisation, internal trading supervision, implementation of the Board’s decisions, publication of information on the exchange and the Exchange’s overall business administration are duties of the Chief Executive Officer supported by the BSE organisation.

Committees for the representation of interests

The Exchange shall comply with the principles established by the Capital Market Act and shall ensure  that investment service providers trading on the Exchange, issuers and investors should have the power to issue their opinion while equally participating in the decision-making process affecting the Exchange. In order to ensure this, the Exchange operates committees for the representation of interests. Committee members are elected by traders and issuers, and their mandates expire at the same time as the mandates of the Board of the Exchange.

The Trading Committee formulates the professional view of the vendors, represents vendors’ interests in professional issues and ensures the institutional possibility of professional control of decisions.

The Committe of Issuers   formulates the professional view of the issuers, represents issuers’ interests in professional issues and ensures the institutional possibility of professional control of decisions.

The representative promoting investors’ interests is authorized to issue an opinion on all proposals concerning the interests of investors. The representative is elected by the organisations and associations representing investors’ interests. 

Advisory committees

In addition to the committees for the representation of interests, the Exchange operates further advisory committees in order to prepare and establish the Exchange’s strategic and business decisions. These advisory committees have the right to formulate an opinion on special business development issues.

The Settlement Committee participates in the preparation of decisions regarding the Exchange’s settlement system and ensures effective professional oversight. Its members and Chairman are elected by the BSE Board based on vendor recommendations.

The Index Committee was set up to oversee the expansion and ongoing maintenance of the BSE’s main indexes. In addition, it is charged with developing and publishing the Exchange’s other indicators. The members of the Committee are independent market experts appointed by the Board of Directors. The Board carefully ensures that traders, issuers and investors all receive equal representation in the Committee.

The Delivery Committee is set up to investigate potential infractions and carry out appropriate sanctions of transactions involving commodities transactions. Members of the committee are appointed by the Board from the section members of the merchandising sector.

The Corporate Governance Committee was set up to controll the further development of the Corporate Governance Recommendations taking into account professional demands, EU provisions of law in preparation and general international tendencies, as well as representing professional viewpoints in the further development of corporate law. Members of the Committee include representatives of Issuers, regulatory authorities and BSE, as well as independent market experts and lawyers, who are appointed by the Board of Directors.