FAQ (Frequently Asked Questions)

Orders can be placed on GlobalConnect between 09:05 and 17:05 CET.

No, orders may not be marked as “Valid for Closing” in the Alternative Trading System on GlobalConnect. An order marked in this way is deemed not to have been placed and has no legal effect.

This type of share transfer is possible using the FoP (Free of Payment) method. Fees for transfers are set out in the KDPW Table of Fees. The rules for transfers are described on the KDPW website under Participants/Processing of Foreign Securities.

Any new ISIN will have to be introduced by the Introducing Market Maker and approved by GPW.

KDPW processes subscription rights of foreign issuers. Cash for the exercise of subscription rights should be transferred in the currency required to subscribe for the new issue.

Yes.

AGMs are processed according to the rules defined by the foreign depository which manages KDPW’s account. There are no uniform standards for all markets.

This depends on whether such option is offered by the foreign depository which manages KDPW’s account.

Taxes are handled according to the rules imposed on the payment of dividends from a given tax jurisdiction. Generally, KDPW can act as an intermediary in the transmission of documents confirming eligibility for lower tax rates; however, this option only applies if the depository which manages KDPW’s account makes it available.

Furthermore, the broker who manages the investor’s investment account must be able to process documents confirming eligibility for lower tax rates.

The option to choose the form of benefit payment depends on the options made available by the foreign securities depository which manages KDPW’s account in which the foreign shares traded on GC are deposited.

Benefits are paid in the currency in which they are transferred to KDPW, provided that it is possible. At this time, it is possible to pay benefits in the following foreign currencies: EUR, USD, GBP, CZK, and HUF.

Transactions are cleared and settled in KDPW in accordance with the Polish market calendar.

Trading on GlobalConnect takes place during the trading hours on GPW in the Polish zloty. Similar to other markets operated by GPW, investors have access to real-time market data and can see the actual transactions that are made on the market. Orders are placed through an account with a domestic broker connected to the GlobalConnect market, regardless of whether the broker has access to foreign markets. Transaction costs are very similar to those of other GPW markets.

The selection of companies and their listing on GlobalConnect is the responsibility of the Introducing Market Makers who are responsible for ensuring liquidity in the respective securities.

Shares of foreign companies traded on GlobalConnect are the same shares that can be purchased on their home markets with the same ISIN code. Therefore, investors holding shares of foreign companies purchased on GlobalConnect enjoy the same rights as investors purchasing such shares on the home market.

Any person holding an active investment account with one of the brokers connected to GlobalConnect can invest on GlobalConnect.

The activities of the Introducing Market Maker (WAR) are governed by Exhibit No. 8 to the ATS Rules: https://gpwglobalconnect.pl/regulacje-prawne.

Please note the following paragraphs:

Paragraph 19 concerns the activities of the Introducing Market Maker when a tender offer/buy-in is announced on the home market.

Paragraph 22 regulates the delisting of newly introduced ISINs: 

Within 3 months after the first trading day of financial instruments, the Introducing Market Maker may not apply for delisting of the instruments on GlobalConnect.

Paragraph 23 regulates the process when delisting takes place:

The Introducing Market Maker is required to provide quotes a minimum of 30 days under standard conditions from the time of the delisting application. For the next 30 days, the Introducing Market Maker is required to provide quote with the offer value of sell orders cut by half.

If an investor decides to keep foreign shares delisted from GlobalConnect in the portfolio, the investor can, once such shares are delisted on GlobalConnect, transfer the securities to an investment account with a brokerage house that offers access to foreign markets and then close out the position through that account.

The market making conditions are governed by Exhibit No. 9 to the ATS Rules: https://gpwglobalconnect.pl/regulacje-prawne.

Under the applicable conditions, the Introducing Market Maker is required to maintain a minimum bid and ask value of PLN 30,000 for a minimum of 80% of the trading session, with a maximum spread of 5%.

The GlobalConnect market is structured in such a way that the responsibility for providing liquidity is with the Introducing Market Maker (WAR). As expected, the Introducing Market Maker will buy foreign shares for its own account and then, as market maker, provide trading liquidity on GlobalConnect.

In accordance with the applicable Rules, shares of foreign issuers will be introduced to trading on GlobalConnect. The shares will carry the same ISIN codes as they do on their respective home markets.

At this time, GPW has no plans to introduce ADR/GDR instruments.

The broker will be notified of an upcoming dividend payment by Krajowy Depozyt Papierów Wartościowych (KDPW, Central Securities Depository of Poland).

Dividends will be transferred at net value, i.e. less the withholding tax at the rate applicable in the issuer's country.

Income will be paid in the currency in which it is transferred to KDPW, whenever possible. Currently, income can be paid in the following foreign currencies: EUR, USD, GBP, CZK and HUF.

If an investor is eligible to apply for a reduced tax rate (under a Double Tax Treaty between Poland and the issuer's country of registration), KDPW will provide such information to brokers, who can pass it on to investors.

Please note that neither the Warsaw Stock Exchange, which is the organiser of trading, nor the broker/brokerage house maintaining the investor's investment account is a withholding tax remitter. Tax obligations depend on the individual situation of each investor and the location of the investment, and may change in the future. Therefore, it is advisable to ask the assistance of a tax advisor in order to determine specific tax obligations.

Initially, GlobalConnect will offer trading in blue chips listed on stock exchanges in Western Europe, while US stocks will be added at a later date. The timing of the listing of US stocks will depend on investor interest and activity in this market and on the operational readiness of the Introducing Market Maker.

As part of your investment account, you will receive one collective PIT-8C tax return which covers all taxable income, including that from GlobalConnect. We recommend contacting the broker/brokerage house that maintains your investment account for more details.

Securities are quoted on GlobalConnect in Polish Zloty; however, the securities were issued and are listed on foreign markets in foreign currencies. Therefore, FX risk occurs to the same extent as if the instruments had been bought directly on their home markets.