Vienna Stock Exchange Facilitates Continuous Trading of Austrian Government Bonds, Enhancing Investor Accessibility

Vienna Stock Exchange Facilitates Continuous Trading of Austrian Government Bonds, Enhancing Investor Accessibility

(IN BRIEF) A milestone development has unfolded as Austrian government bonds become continuously tradable on the Vienna Stock Exchange, allowing investors to engage in buying and selling activities throughout trading hours. Market makers such as Erste Group and Raiffeisen Bank International ensure liquidity and price quality, amplifying investor accessibility and fostering transparency. The transition to continuous auctions marks a significant departure from the previous practice, enhancing trading conditions and enabling greater price transparency. With over EUR 300 billion worth of Austrian government bonds listed, including green bonds dedicated to environmental projects, investors can now access a diverse range of investment options while contributing to Austria’s national development initiatives. This initiative, backed by the Republic of Austria’s top credit rating, underscores the Vienna Stock Exchange’s commitment to providing secure and transparent trading environments for investors.

(PRESS RELEASE) VIENNA, 5-Mar-2024 — /EuropaWire/ — Austrian government bonds can be traded by investors on the Vienna Stock Exchange as part of the continuous auction from now on. This change enables buying and selling from 09:15 to 16:30 on trading days via banks and online brokers. Erste Group and Raiffeisen Bank International act as market makers to ensure continuous liquidity and high price quality.

By switching to the trading model continuous auctions, private investors in particular will benefit from more attractive trading conditions. In contrast to the previous process, in which prices for Austrian government bonds were set once a day and without market makers, the new trading procedure enables increased price quality and transparency. There are currently 33 Austrian government bonds with remaining terms of between four months and 96 years and a volume of more than EUR 300 billion listed on the Viennese trading venue. These include two green government bonds listed in the Vienna ESG Segment. The funds from these green bonds are used exclusively to finance climate and environmentally relevant projects.

Finance Minister Magnus Brunner says: “An investment in Austrian government bonds is a commitment to our country. It decisively supports national development initiatives and thus promotes growth and prosperity in Austria. With green government bonds, you can also invest in Austria’s green transformation.”

Christoph Boschan, CEO of the Vienna Stock Exchange, emphasises: “Austrian government bonds can now be traded on the Vienna Stock Exchange throughout the day. This gives the investment public the simplest and most cost-effective access to these bonds.”

The role of market makers

Market makers such as Erste Group and RBI are committed to providing buy and sell offers throughout trading hours. This continuous market presence ensures that bonds can be traded during the entire trading day, resulting in increased liquidity and better prices for investors.

Republic of Austria – issuer with top rating and highest creditworthiness

Austrian government bonds are issued by the Austrian Treasury (OeBFA) in the name and for the account of the Republic of Austria. The state uses them to finance essential tasks – from infrastructure expansion to education and healthcare. Investors benefit from a broad maturity spectrum and therefore a high degree of flexibility as well as the transparency and liquidity of stock exchange trading. Due to the excellent rating of the Republic of Austria, these bonds are among the safest investment options. The minimum denomination for government bonds issued after 23 August 2023 is EUR 100 (before: EUR 1,000).

“For the Republic of Austria as the largest issuer on the Vienna Stock Exchange, high transparency, price quality and liquidity are very important. The continuous auction fulfils all these criteria perfectly. At the same time, it enables an expansion of the domestic investor base, as private investors now have simple and attractive trading access to government bonds as well,” explains Markus Stix, Managing Director of OeBFA.

Security and transparency in stock exchange trading

Trading via the Vienna Stock Exchange offers a significantly reduced risk compared to over-the-counter (OTC) trading due to the Central Counterparty Austria (CCPA), which settles exchange transactions, and sophisticated risk management. Trading participants, information providers and interested private investors benefit from real-time information on prices and trading activities via the market data feed and the Vienna Stock Exchange website. This ensures maximum transparency and security.

About the Vienna Stock Exchange

As the central infrastructure provider in the region, Wiener Börse AG opens doors to global markets. It operates the stock exchanges in Vienna and Prague. Listed companies benefit from maximum liquidity there, and as the market leader it offers investors fast and inexpensive trading. Wiener Börse collects and distributes price data and calculates the most important indices for a dozen markets in the region. Thanks to its unique know-how, the national exchanges in Budapest, Ljubljana and Zagreb also rely on the IT services of the Vienna Stock Exchange. In addition, it is involved in other energy exchanges and clearing houses in the region.

Disclaimer

This press release may contain certain forward-looking statements and projections based on assumptions current at the date of this press release. We assume no liability whatsoever that these forward-looking statements will occur. Furthermore, we expressly point out that this press release does not serve as a basis for an investment decision and constitutes neither an invitation to buy nor an investment recommendation by Wiener Börse AG. The information in this press release is provided without guarantee.

Media Contacts:

Alexander Wastl
Corporate Communications
alexander.wastl(a)wienerboerse.at
+43 1 531 65-153

Anita Schatz
Corporate Communications
anita.schatz(a)wienerboerse.at
+43 1 531 65-212

SOURCE: Wiener Börse AG