Raiffeisen Centrobank AG (RCB) has appointed financial markets extranet provider, Transaction Network Services (TNS), to provide trading connectivity to the Warsaw Stock Exchange (WSE).
In a one-year deal, the investment arm of Austria's third largest bank has connected with TNS' proprietary IP network, the Secure Trading Extranet, to transport market data from the exchange, as part of its strategic expansion in Central and Eastern Europe.
Based in Tegetthoffstrasse, Vienna, RCB provides Austrian and international brokerages with securities trading services, company research, equity capital market financings, mergers and acquisitions advice, private equity and private banking.
Since it was consolidated as a single stock house and wholly incorporated within Raiffeisen Zentralbank Österreich AG in November 2001, RCB has reworked its business and has shifted its focus beyond Austrian markets.
Using the Secure Trading Extranet, the bank will have access to a global financial community of over 1,000 end-points, including buy-side and sell-side organisations, market data and software vendors, exchanges and alternative trading venues, via TNS' 96 points-of-presence in 25 countries in North America, Europe and Asia Pacific.
Günter Völker, head of IT, RCB said: "Future growth of the business lies in realising our potential as a premier hub for domestic and international brokers looking to invest on Central and Eastern Europe stock exchanges and financial markets.
"Partnering with TNS' Secure Trading Extranet has provided us with the scope to expand business with brokerages internationally by providing reliable and economical connectivity to a huge number of potential trading partners already linked to TNS' network.
"While opportunities exist on the Wiener Börse, especially in supporting venture capital and private equity investments and future listings including those of family enterprises, Central and Eastern Europe represents a logical extension to RCB's activity and a sound target for continued growth."
As a member of major European stock exchanges such as XETRA, EUREX, EUWAX, SWX, Virt-X, Borsa Italiana, London and Budapest Stock Exchange, RCB has already grown to become one of the top three operators on the Wiener Börse and accounts for 20 per cent of Austria's trading in securities.
The contract was awarded to TNS in competitive tender against local tele-communications providers.
Günter Völker said: "Starting with Warsaw Stock Exchange, we will be able to develop access to other exchanges' market data in the region and a product that delivers even better service compared with the competition. "
TNS established its presence in Austria earlier this year with the appointment of Franz Bader as vice president responsible for operations in Central and Eastern Europe based in Vienna. In June, the company was appointed as connectivity provider to the WSE to connect remote traders with the exchange and create a more liquid trading environment.
Via the Secure Trading Extranet participants looking to trade within the region can submit indications of interest, route orders, execute trades, access trading applications, exchanges and ECNs and carry out other FIX and non FIX-based transactions.
Franz Bader, TNS said: "This is a significant contract for us, signalling the confidence of one of the region's leading financial institutions in TNS' Secure Trading Extranet.
"Raiffeisen Centrobank adds to our growing list of European clients that are achieving simplified financial markets connectivity, securely and reliably.
Many are offering direct market access where high throughput is required to support the electronic trading revolution.
"The ability to connect on-net counter parties within three days also helps us and our trading partners build links with multiple new end-points across the global financial markets."