On the BETa Market of Budapest Stock Exchange investors can trade with foreign
equities. Equities bought here are identical in every way to those traded on foreign
markets. Trading is conducted in Hungarian forints, thus the BETa Market offers
access to the equities of several European companies issued in foreign currency
without the need to face currency conversion costs.
The liquidity of trading in foreign equities registered on the BETa Market is
ensured by official market makers who, in accordance with the market making agreement,
undertake to keep a continuous supply of bid and ask quotes in the order book.
Market making helps investors find bid and ask quotes in the foreign equities
at all times, at adequate prices.
Trading hours and periods, trading rules, as well as order types and their expiry
on the BETa Market are identical to those applied in BSE’s Equities Section. Capital
gains attained on the BETa Market are subject to the same tax rates as those attained
on BSE’s equity market. The clearing and settlement of the transactions executed
on the BETa Market is done by KELER Ltd., and KELER CCP Ltd. guarantees the transactions.
In May 2012 BSE launched futures trading with foreign equities, thus enabling
the leveraged trading with these equities. The new equity-based futures contracts were
introduced to the Derivatives Section of BSE’s regulated market, and their underlying
products are the equities traded on the BETa Market. Similarly to the BETa Market
spot equities the currency of trading and settlement is conducted in HUF. The
BETa Market equity based futures contracts are identical to the ones with underlyings
traded on the BSE’s official market in terms of expiration months, delivery method
(physical delivery), settlement (KELER Ltd.) and guarantee system (KELER KSZF
Ltd.). The ticker of thefutures contracts with BETa equity underlying begins with