The Free Market is the market of the Prague Stock Exchange, where both investment instruments for which the issuer (Czech or foreign company) has applied for admission to trading and attractive issues traded on other world exchanges are admitted to trading on the Free Market without an application by the issuer.
In addition to foreign equity issues (blue chips), derivative investment instruments (certificates, warrants) and other investment instruments are also traded on the Free Market. An overview of these is as follows:
- shares
- bonds
- investment certificates
- warrants
- ETFS
An application for admission may be made by the issuer or by a member of the Exchange representing the issuer by proxy. In both cases, the issuer remains the responsible person.
Required documents
- an application for admission and a signed framework agreement between the issuer and the exchange
- the prospectus of the security or information document
- proof of the allocation of the ISIN or similar identification code and proof of registration of the issue by the central depository
- an extract from the commercial register or similar foreign register
- in the case of shares, the memorandum and articles of association of the issuer or an equivalent document under the law of the issuer's home country is required, and in the case of bonds, the terms of issue or an equivalent document is required
- if the issuer applies for admission of an investment instrument that is not traded on another regulated market, it must also provide evidence that a member of the exchange or an authorised Start Market analyst has undertaken to produce an annual analytical report on the issuer and its investment instrument.
An investment instrument may also be admitted to the Free Market upon application by someone other than the issuer. Most often, this may involve the issuance of shares that are already traded on one of the foreign stock exchanges. The application for admission to the Free Market is made by a member of the exchange.
The issuers of such investment instruments are already subject to the relevant regulatory requirements, trading on other markets is sufficiently liquid and trading on the Free Market makes the investment instrument more accessible to investors in the Czech Republic.
Required documents
- application for admission and contract between the exchange member and the exchange
- the prospectus of the security or similar document
- such other documents as may be relevant with regard to the nature of the particular investment instrument and its issuer
Acceptance may also be made by the Exchange without an application.
Detailed information is provided in the Free Market Rules.
The issue shall commence trading from the date specified in the application or determined by the Exchange. It is also possible to start conditional trading up to 10 days before the start of regular trading, in particular in cases where the start of regular trading is conditional on the settlement of a previous public offer. However, in such a case, the issuer or exchange member must request the conditional trading.
The decision on the admission of an investment instrument to the Free Market shall be made by the CEO of the Exchange within 10 days of receipt of the application.
In the case of issues of shares accepted at the request of the issuer, the issuer is obliged to send to the stock exchange all information and documents that it publishes in fulfillment of the information obligation in relation to the "listing" on its primary market. If shares are admitted to trading on the Free Market without the issuer's consent, the issuer is not obliged to send any information or documents to the Prague Stock Exchange.
In the case of share issues accepted at the issuer's request, the initial and annual fee is CZK 10,000. No annual fee is payable in the first year of trading.
Detailed information is provided in the Fee Regulations.
